Emerald Health Therapeutics Inc EMHTF

“In Our Favor” ???

[DanielDarden123]

PSF is still owed ~$25M by EMH. How does Delta 2 get completed without the cash??? Putting up the money resolves this “in our favour”. Anything else is only smoke obscuring the shortfall and loss of equity in PSF.

[kenster]

Delta and Verdelite were already funded and growing.All 25 mil is not yet owed and if Vff wanted they could easily make it work.

[LIVEST5EM]

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[geschaatsten]

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[geschaatsten]

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[geschaatsten]

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[rrrrrrrrrrrr]

EMH has paid $19.06 of the $25M. $5.94 is under arbitration.  EMH has suggested that the $5.94M was paid when they requested it be offset from the $13M loan they have out to PSF.  That is the only amount outstanding on Delta 2.  That will go 1 of 2 ways.  Either the arbitration will result in agreement the amount will be paid with the offset of the loan or they will cancel the

[kenster]

Excellent post,Vff has lots of cash and Sunfarms will make them lots of money.The trick in M.J. is to sell the goods.

[DanielDarden123]

rrr...., The ~$19M payable to PSF is the result of the Supply Agreement not the D2 Option Agreement. You have the latter correct but have overlooked the former. EMH has admitted in their own prospectus that they are responsible for the lost cash flow from the Supply Agreement when they do not take their 40% of PSF’s production. Fixed Price - Realized Price = EMH Payable.

[rrrrrrrrrrrr]

$19M for the Q3 & 4 take or pay agreement looks high. Assuming that is right and given EMH's ownership in PSF they would get back 50% for the Q3 exposure and 46.5% for the Q4 exposure. 

[DanielDarden123]

From my perspective the critical part of this discussion is to realize that the PSF Model was structured to rely upon and use the cash flow to grow the business into a leader. Without the ~$25 M plans are undoubtedly altered negatively. Much cash is required to complete the conversion of D2, as well as plant, maintain, harvest and sell the product. Only then, does cash flow arrive. For EMH to

[LIVEST3REAM]

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[rrrrrrrrrrrr]

Daniel, you keep talking about $25M.  Can you break that down?   In terms of the original D2 funding PSF is only short $5.94M (Nov default payment by EMH).  If PSF requires more funds they have a provision in the shareholder agreement to call for them.  It is clear VFF has the $5.94M should it be needed.  EMH is stating they are prepared to set off the Nov payment with the

[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

[rrrrrrrrrrrr]

Ya, I don't see it that way. For Q3 PSF sold all of the product and expect in Q4 they will do the same. You have to assume the price PSF will get is at market. If not then EMH has potential re-course and that is now under review for Q3.  If there is an issue it is with the market price not EMH signing up to a higher fixed price (at the time it looked like a discount). That was a