Beleave Inc. Acquires Network of Medical Cannabis Clinics in Ontario - Video Available on InvestmentPitch.com
Vancouver, British Columbia--(Newsfile Corp. - May 2, 2018) - Beleave Inc. (CSE: BE) (OTCQX: BLEVF) is acquiring 100% of the outstanding shares of 9334416 Canada Inc., which operates as Medi-Green, Karmacann, and My-Grow, a network of medical cannabis clinics with 3 locations across Ontario.
Beleave is a biotech company, which through its wholly-owned subsidiary Beleave Kannabis Corp., is also a licensed producer pursuant to the ACMPR, with a custom-built 14,500 square foot facility located in Hamilton, Ontario, with the capacity to produce 550,000 grams of marihuana per year.
Andrew Wnek, CEO, stated: "The acquisition of Medi-Green marks the first step in executing the Company's client acquisition strategy while becoming more closely involved in an integral part of the patient experience. Integrating with clinics is a proven model which provides a significant and fluid referral program between medical practitioners and prescribing doctors. The Company plans to expand the reach of Medi-Green's clinic network across Canada."
Beleave will pay $3 million to the Medi-Green shareholders payable through the issuance shares with the price determined based on the company's 10-day Volume Weighted Average Price, leading up to the Closing date. The Medi-Green shareholders will also be entitled to receive up to $2 million of additional Beleave shares if certain operational milestones are attained within the first twelve months.
Medi-Green has an active patient base of approximately 4,000 with average patient subscriptions in the 2 to 3 gram per day range. Medi-Green has no long-term debt and had annual revenue of approximately $2.9 million in 2017. As part of the agreement the Medi-Green leadership team will remain on board and will continue operating the business as a wholly-owned subsidiary of Beleave.
Trevor Hands, Medi-Green CEO, stated: "Our team is eager and excited to work under the Beleave brand. We feel our team aligns nicely with Beleave and their attention to quality assurance and sound science will be beneficial to our patients. Together I think we can bring strong vision and expertise to multiple areas of the ACMPR market, the newly emerging recreational sector, as well as other domestic and international opportunities. We plan on adding at least six more locations by the end of 2018."
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