Top Cannabis Investment News, Member Posts, Cannabis Investment Daily Indices and more!

3yrs ago Cannabis greenmarketreport Views: 379

-

Canadian cannabis company Beleave Inc. (OTC: BLEVF) is applying for creditor protection, which isn’t exactly bankruptcy, but instead is an attempt to avoid heading to bankruptcy. The companies included in the filing are Beleave Kannabis Corp., Seven Oaks Inc., 9334416 Canada Inc. O/A Medi-Green and My-Grow, Beleave Kannabis Abbotsford Inc., and Beleave Kannabis Chilliwack Inc. collectively known as the “Beleave Group“.

The company said it has received the approval of its directors to make an application for an order for creditor protection from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act. The company said it will be making its application to Court for the Initial Order on June 5, 2020.

The Beleave Group said in a statement that it is seeking creditor protection under the CCAA in order to receive a stay of proceedings that will allow the Beleave Group to facilitate a going concern transaction with Hegedus Consulting Services Inc. or identify and conclude a transaction with a superior offer.

Troubles Began In 2019

In April, Beleave announced that Kevin Keagan resigned from his position as CEO, but remained on the Board of Directors. Bill Panagiotakoplous, COO was named acting CEO, while the Board began a search for Mr. Keagan’s successor.

This followed a move in December 2019 when Jeannette VanderMarel announced her departure as CEO after fewer than two months on the job. VanderMarel disclosed her resignation on social media, saying she “happily resigned as CEO of Beleave Kannabis” and that she was “moving on to things I believe in.”

In a November filing, Beleave disclosed that it faced a lawsuit from another cannabis company Auxly. Auxly alleged certain breaches of an agreement related to an Oct. 5, 2017, deal between the companies, when Beleave received CA$5 million in funding from Auxly, according to the filing.

“The company disputes Auxly’s allegations, both on their purported merits and on procedural grounds, and intends to vigorously defend itself in any proceedings,” read the statement.

DIP Loan

Pursuant to the Proposed Transaction, the Beleave Group and the Purchaser have agreed to (i) a debtor-in-possession loan to fund the proposed CCAA proceedings; and (ii) an offer by the Purchaser to purchase substantially all of the assets of the Beleave Group pursuant to an asset purchase agreement that will be the “stalking-horse” in a sale process designed to solicit higher and better offers.

If the Initial Order is granted, it is expected that the Beleave Group’s day-to-day obligations to employees and key suppliers of goods and services, from and after the filing day, will continue to be met. While under CCAA protection, management of the company would remain responsible for the day-to-day operations of the company under the general oversight of the Monitor.

Beleaguered Beleave Files To Restructure on Green Market Report.


Today's Cannabis Investment Headlines:

Log In for More
Access Over 250K+ Industry Headlines, Posts and Updates
Not a member yet?

Join AlphaMaven

The Premier Alternative Investment
Research and Due Diligence Platform for Investors

Free Membership for Qualified Investors and Industry Participants
  • Easily Customize Content to Match Your Investment Preferences
  • Breaking News 24/7/365
  • Daily Newsletter & Indices
  • Alternative Investment Listings & LeaderBoards
  • Industry Research, Due Diligence, Videos, Webinars, Events, Press Releases, Market Commentary, Newsletters, Fact Sheets, Presentations, Investment Mandates, Video PitchBooks & More!
  • Company Directory
  • Contact Directory
  • Member Posts & Publications
  • Alpha University Video Series to Expand Investor Knowledge
  • AUM Accelerator Program (designed for investment managers)
  • Over 450K+ Industry Headlines, Posts and Updates
ALL ALPHAMAVEN CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. CONTENT POSTED BY MEMBERS DOES NOT NECESSARILY REFLECT THE OPINION OR BELIEFS OF ALPHAMAVEN AND HAS NOT ALWAYS BEEN INDEPENDENTLY VERIFIED BY ALPHAMAVEN. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THIS IS NOT A SOLICITATION FOR INVESTMENT. THE MATERIAL PROVIDED HEREIN IS FOR INFORMATIONAL PURPOSES ONLY. IT DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY INTERESTS OF ANY FUND OR ANY OTHER SECURITIES. ANY SUCH OFFERINGS CAN BE MADE ONLY IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN THE INVESTMENT'S PRIVATE PLACEMENT MEMORANDUM. PRIOR TO INVESTING, INVESTORS ARE STRONGLY URGED TO REVIEW CAREFULLY THE PRIVATE PLACEMENT MEMORANDUM (INCLUDING THE RISK FACTORS DESCRIBED THEREIN), THE LIMITED PARTNERSHIP AGREEMENT AND THE SUBSCRIPTION DOCUMENTS, TO ASK SUCH QUESTIONS OF THE INVESTMENT MANAGER AS THEY DEEM APPROPRIATE, AND TO DISCUSS ANY PROSPECTIVE INVESTMENT IN THE FUND WITH THEIR LEGAL AND TAX ADVISERS IN ORDER TO MAKE AN INDEPENDENT DETERMINATION OF THE SUITABILITY AND CONSEQUENCES OF AN INVESTMENT.