Beleave will add almost 100,000 sq. ft.for cannabis extraction, processing, and cultivation. Phase 2 expects to generate approximately $50 million in annualized revenue with an average gross profit margin of 60 percent once fully operational.
Toronto, Ontario--(Newsfile Corp. - June 24, 2019) - Beleave Inc. (CSE: BE) (OTCQX: BLEVF) ("Beleave" or the "Company") is pleased to announce today that it has received the required building permit from the City of Hamilton for its Hamilton Phase 2 expansion. Work on Phase 2 is now underway, with construction teams already on site.
The Phase 2 expansion has long been in development and represents an important moment in the Beleave story. The newly-announced building permit marks the final approval necessary to move the project forward. Last month, the Company received another approval for the project to progress at a public meeting of the Hamilton City Council.
Construction of the 91,700 sq. ft. Phase 2 expansion project has begun with Beleave retaining the services of Havecon Horticultural Projects. Havecon, a leading developer of horticultural and agricultural construction and development, will manage and complete the work on site. Phase 2 will result in an additional 5,700 sq. ft. of indoor grow space and 55,000 sq. ft. of greenhouse space which would have an expected annual yield of 8,650 kilograms per year.
"This expansion is a major breakthrough for Beleave and possibly one of the most important for us as we continue to execute on our strategy. This expansion, now fully greenlit, is a pivotal part of our business plan to take Beleave into the future," said Beleave CEO, Bill Panagiotakopoulos. "This marks the latest in a series of important and positive changes for our company recently. I extend my congratulations to everyone on the team who worked hard to make this possible."
Beleave's Hamilton facility is a state-of-the-art hub for high-efficiency extraction, processing, and cultivation of cannabis and cannabis-derived products. The newly-approved expansion is expected to provide the ability to significantly increase current operations, distribution, and sales beyond what they are today.
The construction plan has been notionally approved by Health Canada, subject to confirmation that the building has been completed, as a licensed growing facility. The work on site is expected to take roughly four months before the greenhouse is fully operational.
Phase 2 includes 29,500 sq. ft. allocated to office, storage, and processing which will allow the Company to repurpose spaces in the existing facility for other uses.
Beleave thanks the Hamilton City Council for their continued cooperation and support through the approval processes and looks forward to an ongoing and productive relationship with the city and the community as a whole.
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
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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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