RE:QuestionTreadnimbly wrote: So they get the license to sell directly to provincial govts. Would they be making more than selling at spot? Looks like we will have shortages throughout the year and we will be at full 1.1 mill.Sq ft capacity!! Are we now converting delta 2 ? On our own or with EMH? This going to be one heck of a year for VFF in Canada alone! Texas and nasdaq is all bonus! GLTA.
Not sure about what the price would be selling to provincial governments. On one hand getting a supply agreement is more valuable in that it's getting a set amount of product rather than having to risk relying on spot markets. On the other hand prices will just go down in the long run, so a long-term sales contract may have a lower price.
No they are not converting Delta 2 at this time. EMH has to agree to go ahead with it before starting. Under the terms of the agreement, they wouldn't start Delta 2 until Delta 3 was completely converted (and EMH has to agree to go ahead with this). Mike had mentioned that VFF was willing to waive this requirement before converting Delta 2 but looks like EMH didn't want to start conversion at that time. IMO having EMH as a partner was not the best decision.