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consumer packaged goods companies in terms of product innovation and driving consumer demand, and away from simply cultivation, in order to thrive in the long-term.
CIM: Do you foresee THC caps on recreational supply to ensure that there remains a difference between recreational and medical? If not, how do you see the recreational market affecting the medical market.
EMMBF: This is an ongoing discussion within the halls at Emblem. We think the recreational market will have a disruptive effect on the medical market, but by how much, we can’t predict.
CIM: The recent announcement by Sunlife that members will soon be covered for medical marijuana and the recent twitter reply from Great West Life that they intend to follow Sunlife’s lead can only be positive. Thoughts?
EMMBF: We have seen thousands of patients benefit from cannabis therapy, but cost continues to be prohibitive for many. We applaud Sunlife and other companies that are providing coverage for cannabis and hope that more employers will step up and offer coverage to their employees.
CIM: In a few articles over the past two years I have written on how warrants may be an attractive option to investors (leverage and gearing potential but the downside of course includes no shareholder rights and privileges and of course they expire and have zero value afterwards). Emblem has some free trading warrants. From an investor’s perspective, and assuming EMC is undervalued, what are your thoughts on a strategy of adding Emblem warrants particularly since EMC currently has two separate issues trading?
EMMBF: We evaluate what an optimal capital structure looks like for the Company at any given time. This is balanced with our capital needs, and what the overall investor appetite is at certain times. From an investor strategy perspective, we are not in a positon to comment as different investors have different risk tolerance levels, views and preferences on what class of securities suit their investment objectives best.