Beleave Inc. (BE) is licensed for cultivation at its 14,500 sq. ft. GMP compliant, purpose built, indoor facility outside of Hamilton, Ontario. The company has taken a scientific approach to cannabis through research partnerships and is prepared to enter the growth phase of its business.
Beleave’s management team has been very mindful of the effects of dilution and how it
should be minimized for optimal shareholder returns over the long term. To date, the company has issued
just over 32 million shares, and seed investors/insiders hold nearly half of those. This is significant because it demonstrates managements alignment with shareholders and commitment to the company’s success. With only 16 million shares floating, the basic principles of supply and demand can be clearly seen with the stocks trading patterns. With such a short supply of shares, as positive catalysts are announced, increasing demand causes investors to bid the stock higher, often quickly, as we have seen several times since the company went public in 2016.
The company demonstrated their ability to acquire non-dilutive capital when they signed a debt deal with Wheaton Income (CBW) for up to $10 million. As reported on October 5, 2017, the company announced the DOPE note, or debt obligation repayable in product equivalents, with CBW. As per the terms of the deal, BE will repay the loan with the proceeds from 85% of all grams sold until the principal is repaid. This deal allows Beleave to maintain their attractive share structure, while forging a strong relationship with Wheaton which may lead to further synergies between the two companies in the future.
In addition to their financing deal with CBW, the company announced on November 30, 2017 an up-sized private placement for proceeds of $10 million. As per the terms of the placement,
each unit, priced at $1.50, is comprised of one common share and one warrant with an exercise price of $2.00. If the closing price of
the stock exceeds $3.00 per share for 10 consecutive days over the next 24 months, the company is able to accelerate the expiration of the warrants, further strengthening their balance sheet. Upon the closing of this placement, expected in early December 2017, the company will have a war chest in excess of $15 million. It has yet to be disclosed what the proceeds will be allocated towards, but this placement positions Beleave extremely well complete all scheduled expansion plans, as well as explore potential opportunities for other partnerships or strategic acquisitions.
The company is currently constructing an 80,000 sq. ft. state-of-the-art hybrid greenhouse adjacent to its current operations near Hamilton. This new greenhouse will be of dutch design, making it very cost effective and operationally efficient. Although output yields have yet to be disclosed by the company, if comparable to peers, this facility could yield as much as 10,000kg per year.
Since late 2016, the company has had ongoing research and development initiatives with Ryerson University. On December 4, 2016, the company announced that research had concluded on optimizing methods of cannabinoid and terpene extraction in a unique and more efficient manner. On March 6, 2017, further R&D commenced with Ryerson University when the company announced that they were working in collaboration to develop methods in which medicinal compounds can be highly purified. In both instances, the projects were funded through grants with the Natural Sciences and Engineering Research Council of Canada (NSERC), and that the intellectual property stemming from these projects will belong to Beleave.
Beleave Inc
CSE:BE
As At 11/25/2017
Shares Outstanding: 532,416,754
Share Price: $1.73 Market Cap: $32,416,754
243
VIEW CASE STUDY LINKS HERE