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outdoor grow operations, to support expansion efforts and to pursue strategic opportunities and investments that maximize shareholder value.
Planned annual capacity of approximately 138,000 kg (including committed supply agreements).
Not mentioned in the above, but I referenced it last month and commented on it on my introduction here, is that Emblem is partnered with Durham College and a member of Durham College’s Cannabis Industry’s Program Advisory Committee is Aleafia’s Dr. Michael Verbora. Dr. Verbora is no stranger to our subscribers as he has submitted content, articles, and is always available for an interview or for consultation.
I personally like this deal very much and let’s continue being forward thinking shall well … did I mention how much I think Canada House Wellness is also ripe for M&A or for a strategic partnership/joint venture? I think I might have … and CHV’s primary facility is also located in Durham Region (Aleafia has a facility in Port Perry which is located in Durham Region). Aleafia has a relationship with CannTrust and of course CannTrust one with Apotex … are there dots there to be connected one must ponder. However, one must never make investment decisions based on what could happen if if if … but rather on what will happen when when when. We believe that both EMC and ALEF are undervalued. We believe this M&A is synergistic and will bring value, in time, to all stakeholders … that is what I believe in time will happen and when. The “if if if” is a nothing more than a nice rider clause that may or may not happen.
Let’s now look at what we coined as near arbitrage (M&A) … the opportunity as an investor. Others wrongly call this arbitrage which it is not. Arbitrage refers to the instantaneous zero risk gain main on imperfect conditions such as when we highlighted the near 20% difference in share price (in Canadian dollars) of Lexaria’s share prices on the CSE and on the OTC at the same time. M&A’s can fail and their terms can change so there is a risk premium that narrows as the deal becomes more certain.
The following grid shows the share prices and their relative spread (as a ratio) from the time of the announcement through to the end of the day on December 21.