Emerald Health Therapeutics Inc EMHTF

VFF 100% OF PSF

[Lazorsharp]

Let's say EMH takes the 25% as per agreement @$5.00 a gram Q1 2020, PSF makes a killing, that's one quarter. Now can EMH do this for the remainder of the agreement until 2022 that's 11 more quarters. Personaly I don't see what they can't, although here is little "caveat" in the agreement with EMH they are required to pay upfront for the product, which is a big cash flow problem for EMH who has, lets face it, less than desirable financials. Q1 2020 EMH would have to pay PSF roughly around $35 million for the 25% as per agreement @$5 a gram.

[rrrrrrrrrrrr]

1/ Take or buy at a fixed price expires at the end of this year.  EMH was only subject to the price delta in Q3 (max $7.2M) and will be in Q4 ($TBD but assume $8M max). If they pay they will get 1/2 of this back through PSF ownership.  2/ 2020-22 the "take or buy" condition is removed as it is not a fixed price it is at "previaling market price".  There would be

[Lazorsharp]

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

[Invest4Life2016]

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

[420mtl]

Agree with you... Page 12, prevailing market price start 2020...bashers/shorters maybe didn't realise that... I like it that way...

[Lazorsharp]

EMH is contractually obligated to "take"25% 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% of the 150,000 kg ( PSF will produce annually) that they are obligated in the contractually agreement with PSF. Once again if EMH refuses to take

[kenster]

Its also in VFF best interest to make Pure sunfarms work.More money in Pot then peppers.

[weedstocks303]

This post has been removed in accordance with Community Policy

[rrrrrrrrrrrr]

The "take or buy" clause is the difference between their current fixed price and market price for sold product.  There is no "fixed" price after 2019, it is at "prevailing market prices".  The result of multiplying any amount of kgs x $0 = $0.

[Wantthetruth999]

From Village Farms Investor Presentation "Wholesale distribution agreements with a Canadian LP 2019: 40% of production @ fixed price 2020-22: 25% of production @ prevailing market price" Like I said before after 2019 no more invoices coming to EMH on this issue.