Emerald Health Therapeutics Inc TBQBF

RE:RE:RE:VFF 100% OF PSF

[Invest4Life2016]

Lazorsharp wrote: Nice try on that one?......EMH is contractually obligated to "take" at pervailing spot market price for the 3 year contract, 2020 to 2022, no where does this state or imply the "don't" or "have" the right under this contract to refuse the 25% that they are obligated in the contractually agreement with PSF. Once again if EMH refuses to take any part or hole VFF has the right to sell at spot market pricing and bill EMH for the outstanding monitory difference.

Spot on!  And thus “Village Farms will again elect to exercise its contractual right to fund any such payment default by Emerald and further increase Village Farms' majority ownership position in Pure Sunfarms.”  

I don’t see how EMH is going to survive over the next 3 quarters.  VFF will be producing more and thus EMH’s contractual obligation for 40% of that is either going to bankrupt them or VFF will continue building on it’s majority equity stake in PSF. 

The whole sector still has lots of downside since many LPs have less than 8 months of survival at their current burn rate.  Throw in the supply glut of legal weed soon to hit the market over the next 2 years spells much more downfall than upside for awhile.  Canada is on the cusp of huge price declines for legal weed, which will take a couple of years to stabilize just as it did in the states that legalized rec years before Canada did, such as Colorado, Washington, Oregon, etc..  

Once the cannabis 2.0 fails to match the hype as 1.0 does, then throw in a 40% drop in the legal weed price spells out a sector capitulation.