Emerald Health Therapeutics Inc TBQBF

RE:RE:RE:RE:RE:RE:“In Our Favor” ???

[DanielDarden123]

rrr....

The non-payment of ~$6M is obvious so I will address the $19M due to PSF. $7.2M is the Q3 shortfall resulting from the Supply Agreement which EMH admits to in a subsequent Prospectus (the 40% requirement). They have tried to spin the 40% to “up to” at other times, however, they would understand that falsifying a Prospectus creates the potential for liabilities including class actions.

During the VFF Q3 call, the CEO was asked whether EMH was buying PSF production during Q4. His answer was “no”, which leads one to believe that additional payables were accruing during Q4. While the exact amount will not be known until Q4 results are released, one can reasonably assume that the Q4 payable will be greater than Q3 based on : 1) as the market price declined the differential (payable) increased per gram; and 2) production was increasing. IMO $12.8M will be shown to be a conservative number payable to this date since Q3.

Insofar as D2 funding, the budget for the conversion was stated as $60M, $46M of which was provided by the partners,  leaving the remainder from financing and free cash flow. EMH has asked for their $13M loan to be repaid and offset which may require financial adjustments. Clearly, PSF did not anticipate the ~$25M shortfall from EMH, so adjustments have already been made to compensate. You seem to believe that a cash call from the partners is a simple solutions without realizing that EMH is already not meeting its’ commitments. How can EMH justify asking VFF to contribute more without increasing their equity position???

All the while PSF is trying to run and grow a business that requires operating cash flow sooner rather than later. The profits from D3 cannot sustain EMH and operate D2 until H2, 2020 when cash flow arrives. If EMH is not buying and paying for their 25% of the 2020 production, something is unfixable and PSF will have to act accordingly.