Beleave Announces LOI for Leaseback of London Production Facility and Sale of Lloydminster Retail Space
Toronto, Ontario--(Newsfile Corp. - August 29, 2019) - Beleave Inc. (CSE: BE) (OTCQX: BLEVF) ("Beleave" or the "Company") is pleased to announce the signing of a letter of intent (the "LOI") on Tuesday, August 27, 2019, to negotiate, in good faith, with a private purchaser (the "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 is also announcing the sale of its Saskatchewan retail store in Lloydminster.
London Facility Leaseback Details
The London facility has 250,000 sq ft of greenhouse space and 85 acres of land in London, Ontario. 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.
After completion of the sale, the Company will continue to run production from half of the facility that will be leased back. With a direct line of young cannabis plants, Beleave will be able to dedicate 100 percent of their production space to flowering cannabis. As this growing method does not require mother rooms, and growth cycles can be increased, it is expected that Beleave will be able to produce the same amount of product using only 50 percent of the facility.
Lloydminster Retail Sale Details
The Company has also finalized the sale of their retail location in Lloydminster, Saskatchewan. Beleave sold the location for $2 Million CAD, and the Company is expecting to receive the funds within the next 60 days. The new owners will begin cannabis retail operations in the space in mid-October.
Once both sales are completed, they will generate gross proceeds totaling $9 Million CAD, which the Company will use for debt repayment, the acceleration of the Hamilton Phase 2 expansion, and other growth initiatives.
"We're pleased to announce that we're taking another step forward with our growth strategy," said Beleave CEO, Bill Panagiotakopoulos. "Beleave has established the foundations of a long-term brand built on sustainable production processes of flower and oils, with derivatives and concentrates on the horizon. Freeing up this capital will allow investments in R&D and increase the speed of our Hamilton Phase 2 expansion."
Beleave looks forward to providing further updates to the market as the negotiations are finalized and 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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