Emblem Corp EMMBF

What type of facility does $55 Million buy you?

[deminimis]

Haven’t heard back from Ali yet. I think there will be news out in the next day or two that will either cause the SP to sky rocket or plummet...And I legitimaly don’t know which right now.

[tarnoir]

LOL! You will never hear back from Ali. EMC's IR is a joke! My experience with companies that consistently keep shareholders in the dark typically doesn't bode well. I still maintain a decent position in Emblem simply for the fact that it "may" have its day, however, I have moved most of my $$ into some of EMC's peers. EMH and their dealing with shareholders is a stark

[gkmackdadzzz1]

This post has been removed in accordance with Community Policy

[spasticated]

that's what i e-mailed ali last week asking when we'd be getting an updated investor presentation as the most recent one is completely misleading.    but i guess 10000 per month isn't enough funding to answer emails 

[deminimis]

$55 Million should get you somewhere between 250-300K state of the art, highly automated greenhouse with supporting infrastructure that would be able to grow upwards of 50k KGs. Esstentially close to a 1/2 scale Aurora Sky (I believe Sky’s 800k includes infrastructure, not just pure cultivation space). That’s right they have changed gears and are now going greenhouse. If they announce this, the

[deminimis]

The original prospectus said $45 million which already looked way out of whack to me. I questioned Ali on this and all he would say that they are still in the planning and design phase. When I saw in the amended prospectus that it had been upped to 55M I lost my mind. This does not add up.

[spasticated]

how much do you reckon it should cost them to build their initial 120,000 sqft facility? curious as to how much they are over by

[deminimis]

Using Aphria as a benchmark, 120k should cost about 25M....or 30M at most.

[spasticated]

the thing is though, if they were going to switch to a fully greenhouse build to get more production for less cost, why wouldn't they announce this prior to doing financing? this announcement would've shot the stock price up and then they could've secured a less dilutive financing deal. no? 

[deminimis]

Yep...the only thing I can think of is that the Investment banks would only do the bought deal on the condition that they make no announcements until after the deal closed. My original call into Ali a couple a weeks ago was to b!tch about how I found out about the plan, not the plan itself which I think is fantastic depending on costs. Reading about this buried on page 40 of 120 in a prospectus

[deminimis]

Just got confirmation that $55M is indeed only for 120K facility will estimated output of 15,000 KGs.

[deminimis]

To elaborate, Aphria claims that their 200K sq ft greenhouse + 55K sq ft infrastructure Phase 3 expansion had a total cost of 25 million. I really don't think this is a comparable project though. Aphria's phase 4 expansion had some serious automation, additional lighting and a cogen power plant so I think that is a more comparable project.    That project

[cobills]

They do not care about shareholders.It will be 2 months befiore the new CEO takes over.I would bet that the new CEO does not show up.He is probably doing his dd on the company.       One of the worst signs for a company is new CEO coming in.Look at GE Imelt retired and left a mess.GE stock 6 year low.LOOK OUT BELOW.

[cressco]

I don't understand the worry. Costs could've been driven up by a simple demand factor for the large scale contracting companies or maybe just higher end infrastructure. Regardless we are now looking at a 50% increase in dry flower capacity from the previous plans and maybe at a sooner date, depending if the greenhouse facility can be built at a faster pace. Also with regards bashing the

[deminimis]

Capacity is still estimated at only 15,000 KGs per year and estimated completion is still estimated to be Q2 2019. I like the move to greenhouse, I just don’t understand the costs of this project. They are going to need to raise more money to complete this.

[cressco]

Im aware of the capacity for the announced greenhouse. According to the md&a capacity for the initial 100k sq ft facility was 10K KGs. That's where my 50% increase came from. Let us know once ali gets back to u on the details of the costs since u seem to be his go to guy. Lol

[deminimis]

This was the response I got: That's not a typo. It is an estimate at this point and we are being conservative. I can't comment on Aphria's numbers nor can I tell you what they have included versus ours.   

[cressco]

Ty