Emblem Corp EMMBF

RE:RE:RE:Reality check

[deminimis]

The move to a natural gas CoGen should not have any impact on plant yields, that is purely an energy cost savings play. The 10k kg projection is based on the 1 gram per watt which what they have stated is their current yield but they have clearly had yield issues do not being able to control temperature and or humidity levels properly in their grow room.

This is why they have had to halt production in their grow rooms to upgrade their HVAC system (which is happening right now, those rooms will be offline until the end of November). Presumably, growing in a brand new purpose built, super insulated building with a custom designed HVAC system is the kind of operational efficiency that would lead to much better yields than a grow room they tried to hack together in an existing warehouse.

By improvements in the genetics program they mean breeding plants that either grow faster or have higher yields. I am sure this is possible but really outside my area of expertise so I really couldn’t say how material of an impact this could have. I am going to assume that it would be huge.

i think the 10k projection is one of those cases of under promising and over delivering that I was talking about. I give them no credit for this though because they initially over promised in the original press release that said it would be closer to 18k kgs. I am really interested to see what will be in their latest investor presentation (I am guessing we won’t see it until after the Q3 numbers are out).