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 11/25/2107
Shares Outstanding: 532,416,754
Share Price: $1.73 Market Cap: $32,416,754
VIEW CASE STUDY LINKS HERE
The downside I see of course if this is a new company that has yet to meet its Crowsdfunding target and as with all such ventures, liquidity is limited with respect to selling one’s shares/investment. The upside of course is near limitless as I truly can envision the following scenario:
- Rental property booked based on proximity or availability of either a medical marijuana doctor/clinic or recreational venues and events.
- Legal marijunana businesses (including clinics) provide CANRVE a referral commission and/or advertise on CANRVE under the premium offering.
- Culinary professionals expert in using cannabis as an ingredient also advertise on CANRVE to offer not only the tourists with this dining experience but also to permanent residents.
- Lawful ancillary companies will also advertise – imagine arriving at your holiday property and that same day the courier is there with a delivery.
CANRVE also does not touch the plant of any deriviatives. Per this recent release, CANRVE will be launching in Jamaica shortly.
One of the most basic tenets we have emphasized is to investment in management. The CANRVE team has decades of relevant proven successful experience including record breaking revenue and profit generation.
Crowdfunding, digital medium; proven revenue model; new tourist industry; low investment minimum; geographical, demographical, and business line divesification; and to be honest, completely “outside of the box” of a typical case study not only make CANRVE an ideal case study as we kick off 2018 up here in the Great White North but also for the typical Retail Investor to research further whether as an investment or as customer or perhaps both.
Low cost opportunities such as this may be an excellent way to introduce yourself or others to the potential risks and rewards of such an investment. Remember, the downside is losing 100% of your investment and that could be as low as dinner out with a friend money and the upside could very well be substantial if CANRVE delivers. If you are concerned about the illiquid nature of the investment please refer to the investment information as there are exit opportunities. Per their documentation, “We offer SAFE+REV, or Simple Agreement for Future Equity and a Revenue Participation Rights and have two exits: the Revenue Participation that will give you 3X multiple returns on your money, and the second one is the SAFE that will convert your money into common stock when we will go public or get bought.”
Click here for their pitch and remember, Canadians can participate in the crowdfunding.