Emblem Corp EMMBF

RE:RE:RE:RE:RE:RE:RE:Emblem 25 Million Deal

[deminimis]

Right! That is a pretty big change to not comment on. Clearly they’ve added things to the project that were not originally planned. I am speculating that part of that is some serious vault space. There was no mention of additional vault space being included on this project in their Q1 MD&A but they did mention it in Q2. I think they know that growing their own stuff is going to be very expensive and time consuming endevour and will limit how fast they can get their Pharma products to market. I think they plan on purchasing a bunch of product from other LPs which should be a profitable endevour once everybody’s facilities are built out and their is an oversupply in the market causing pricing pressures on producers.

This isn’t to say that they are’t going to grow their own as well, I just don’t think they are going to limit themselves to their own grow. I think this is why they don’t have as aggressive expansion plans, they don’t see that being the best use of funds to drive long term shareholder value.

Of course, they have not come out and said this so this is all my own speculation.