TORONTO, June 21, 2018 /CNW/ - Beleave Inc. (CSE: BE) (OTCQX: BLEVF) ("Beleave" or the "Company") is pleased to announce it has acquired 51% of Procannmed S.A.S. ("Procannmed"), a privately held company that is fully licensed for the cultivation, production, extraction and distribution of both tetrahydrocannabinol (THC) and cannabidiol (CBD) medical cannabis in Colombia. The other 49% ownership was retained by the Colombian based operator ITRUST HOLDINGS S.A.S ("ITRUST"). These licenses enable the propagation of the full range of cannabis varieties and further enable Procannmed to develop a complete offering of standardized, medicinal-grade formulations.
Beleave acquired 51% of Procannmed for a combination of cash ($900,000) and Beleave common shares ($1,500,000 value) for a total purchase price of $2,400,000. The transaction stemmed from a lengthy due diligence process in which members of the Beleave team visited Colombia to speak with Procannmed representatives and various government and industry-related parties.
"We have been conducting extensive market research in various parts of the world and see Colombia as a tremendous growth opportunity," commented Beleave CEO, Andrew Wnek. "Global cannabis prohibition is coming to an end and we plan to capitalize on this in multiple jurisdictions of interest. Colombia in particular provides regulatory support and an outstanding, competitive cost structure making it an attractive destination for foreign investment."
Procannmed is well-positioned to capitalize on the expanding medical needs of over 620 million people in Latin America, with 68 million potential patients identified by other companies in the region. It currently has the ability to grow biomass and extract from their 965,000 sq ft grow space at its property located in the municipality of Argelia in the region of Antioquia.
Further, the companies have together identified other large-scale production properties and have laid out an aggressive plan to have the largest production facility in Colombia. Procannmed has registered 23 high-potency THC strains and one 19.6% CBD/0.03% THC strain with Instituto Colombiano Agropecuario (ICA).
"We are delighted to have reached an agreement with Beleave," said Alberto Jose Esmeral Ramirez, President of ITRUST. "This is an exciting time in the cannabis industry, and Colombia offers a special opportunity thanks in part to unprecedented government support as the country aims to become one of the largest global exporters."
Both Beleave and ITRUST plan on renaming Procannmed with an overhaul of the branding initiative to be established by both companies in tandem.
About Beleave Inc.
Beleave is a biotech company who's wholly-owned subsidiary Beleave Kannabis Corp. is licensed to cultivate and sell medical cannabis and produce cannabis oils and extracts pursuant to Health Canada's Access to Cannabis for Medical Purpose Relations. Beleave has developed a network of medical cannabis clinics under the Medi-Green banner and has applied for various patents to broaden its strong research focused foundation.
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 speak 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.
SOURCE Beleave Inc.