InvestorsHub Logo
icon url

guay

03/15/19 7:11 AM

#9594 RE: Ihal #9582

My guess is that EMH will return its 50% stake in Pure Sunfarms to Village Farms for the following agreement:
1. a generous amount of money
2. special price conditions for the purchase of cannabis for a specified period of time

Emerald has never really seen itself as a producer. This company wants to position itself as an important player in the research, development and marketing of cannabis products - i.e. food supplements and medical devices.

Both parties could benefit from the above agreement.
1. Village Farms gains 100% control over PS and can make an investment that makes sense at a time of positive capital flow. In addition, VFF will have a reliable customer for years to come.
2 EMH has a reliable producer and no longer has to invest in an area that the management sees "only as a means to an end". The capital that has become available and above all the capital that has been released through the sale of the 50% Pure Sunfarms stake in VFF can flow at high pressure into product development and marketing - I think the boys have something in the pipeline, but they need a lot of investment capital for really promising marketing, much more than they currently have.