Toronto, Ontario--(Newsfile Corp. - September 19, 2019) - Beleave Inc. (CSE: BE) (OTCQX: BLEVF) ("Beleave" or the "Company") today provides an update to its shareholders and prospective investors regarding the sale of the Lloydminster retail location, the London cultivation facility leaseback, the release date of its Q1 2019 financials, and the potential merger with Terrafarma Inc.
Lloydminster Retail Sale Update
As previously disclosed on August 29, 2019, the Company is selling its retail location in Lloydminster, Saskatchewan. Beleave has agreed to sell the location for $2 Million CAD, and the Company is expecting to receive the funds within the next 30 days. The new owners will take possession of the store in mid-October will continue cannabis retail operations in the space.
London Facility Leaseback Update
As previously disclosed on August 29, 2019, the Company signed of a letter of intent on Tuesday, August 27, 2019, to negotiate with a private purchaser to sell the Company's London, Ontario cultivation facility. Beleave will lease back 50 percent of the property after the sale is finalized to continue using the facility for cannabis production.
Beleave will earn a total $7 Million CAD for the sale of the property, with an initial cash payment of $3 Million CAD to be paid once the deal is finalized. Discussions have been positive, and the Company anticipates announcing the closing of the agreement in the coming weeks.
Release of Q1 2019 Financials
Beleave will release its Q1 2019 financial statement by Monday, September 30, 2019. The Company made an extension request to the OSC to postpone the release of its Q1 2019 financial statements, originally due August 30, 2019, for the three months ended June 30, 2019. With the September 30, 2019 release date set for release, Beleave is meeting its revised deadline in accordance with the delay announcement on September 6, 2019.
Update on Terrfarma Merger LOI
The Company has completed discussions with Terrafarma Inc. ("Terrafarma") regarding the intent of both parties (the "Parties") to merge their respective businesses. After lengthy discussions, the Parties have agreed to not pursue a merger at this time.
Since August 7, 2019, both Parties were in discussions to merge and have Beleave acquire 100% of the issued and outstanding shares of Terrafarma Inc. such that the current shareholders of Terrafarma would become shareholders of Beleave, and Terrafarma would become a wholly owned subsidiary of the Company. The precise structure of the proposed transaction, and the general terms and conditions, were subject to further discussions among the Parties and both parties had agreed to an initial thirty-day discussion and analysis period, which was extended to allow for more time to conduct due diligence and to consult with securities specialists and other professional advisors.
"We appreciate the time and consideration of both parties during our discussions and we thank the Terrafarma team for their cooperation and work during that period," said Beleave CEO, Bill Panagiotakopoulos. "In the fast-paced cannabis market it can often be difficult to determine a static valuation for a private company, and Beleave has an unparalleled opportunity to be profitable in a mature cannabis marketplace while leveraging our research and new technology. We will continue to review options in the future that benefit our business objectives and our stakeholders."
Beleave looks forward to providing further updates to the market on the above-mentioned developments as negotiations are finalized and further developments occur.
ABOUT BELEAVE INC.
Beleave is an ISO certified, Canadian cannabis company headquartered in the Greater Toronto Area that cultivates high-quality cannabis flower, oil and extracts for medical and recreational markets. Beleave is fully-licenced to cultivate and sell medical and recreational cannabis and is leading the way through research partnerships with universities to develop pharma-grade extracts and derivatives.
Beleave is developing new product lines, including cannabis-infused products, oils, vape pens, and other novel cannabis delivery methods for 2019. Beleave has developed a network of medical cannabis clinics in Ontario and Quebec under the Medi-Green banner. Through its majority ownership of Procannmed S.A.S., Beleave is fully licensed to cultivate, produce, and extract medical cannabis in Colombia positioning it to capitalize on exports and the expanding Latin American market. The Company has partnered with Canymed GmbH to supply the German market with medical cannabis.
Investor Relations Contact:
Interim Chief Financial Officer
Phone: 1 (647) 449 - 7352
This news release contains "forward-looking information" within the meaning of applicable securities law ("forward-looking statements"). The use of any of the words "plan", "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and other similar words, or statements that certain events or conditions "may" or "will" occur are intended to identify forward-looking information. These statements are only predictions. Although the Company believes that the expectations and assumptions on which the forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Since forward-looking information addresses future events and conditions, by its very nature it involves inherent risks and uncertainties. This information speaks only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com.
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