A financial boom not seen since the dot-com mania of the late 1990s has taken over Canada. The legalization of recreational marijuana, scheduled for this fall, is not only a momentous social event, but also a rare opportunity for to be in on the birth of what they hope will become a multibillion-dollar industry.
It would seem that acquisitions and investment deals are fueling the fire so for investors looking for opportunity, the very key could be finding companies that are building a brand & a real niche marketplace for themselves.
Case and point, just look at what has happened within the last 8 months. Back in October, it was widely publicized that one of the largest beer, wine, and spirits companies in the world, Constellation Brands (STZ) was going to acquire a minority (9.9%) stake in Canopy Growth (CGC).
Had you invested in Canopy back when it was just beginning to put the wheels in motion, you would have seen a stock trading around $1.30. Today that same “small cannabis company” trades at a price of over $30 per share!
Beleave Inc. (BLEVF) Has Put Its Wheels In Motion & That Could Mean Big Potential Ahead
Unlike many others who are still “Pending”, this company is a Health Canada-LICENSED company with a strong cash position, well-funded to meet the enormous demand coming from Canada’s full legalization this summer. With a stacked management team and being one of the companies in Canada with a coveted production license granted by Health Canada, I’m just scratching the surface of Beleave, Inc. (BLEVF).
Beleave, Inc. (BLEVF) has seen a steady flow of innovation, organic expansion and talent acquisition that reflects a growing and dynamic company. How dynamic? Well, similar to some of the biggest companies in the space, Beleave has taken the approach of snapping up other cannabis companies to increase the size of its own footprint!
Many analysts agree that legalized marijuana is soon to become the next big boom as it continues to expand at a fast pace across North America.
With this in mind, intelligent entrepreneurs are scrambling to grab a piece of this new industry. The “Green Rush” is quickly producing countless opportunities for people looking to profit.
Beleave Inc. (BLEVF) Is Not Your “Average Marijuana Stock”
Of course on the surface, Beleave Inc. (BLEVF) falls into a vast category of “marijuana stocks” but unlike the countless public companies involved in this market, the company is holding itself to a much higher standard specifically for the investing community.
Let’s explain: Most marijuana stocks fall into two public listing categories (with a slight exception for the few companies listing on a major exchange). Pot stocks either list as a pink sheet company or they list as an “OTCQB”. Though both of these listing give a company the opportunity to trade shares publicly, the reporting requirements – basically the main pieces of information investors look into – are not as strict as their NYSE or Nasdaq listed cohorts.
Two Letters That Set A Stage For Big Opportunity
There is one other listing segment that has all of the transparency of the NYSE and Nasdaq listed companies but does not require the company to meet the stringent guidelines of holding overweight market caps or burning tens thousands of dollars on overpriced accountants. This could be a huge benefit for investors searching for true, undervalued cannabis stocks and here’s what that means for Beleave Inc. (BLEVF).
This company reports on the “OTCQX”. The OTCQX® Best Market is for established, investor-focused U.S. and international companies. To qualify for the OTCQX market, companies must meet high financial standards, follow best practice corporate governance, demonstrate compliance with U.S. securities laws, be current in their disclosure, and have a professional third-party sponsor introduction.
Penny stocks, shells and companies in bankruptcy cannot qualify for OTCQX. The companies found on OTCQX are distinguished by the integrity of their operations and diligence with which they convey their qualifications. With this being the case, many would agree that by listing a company at such a high level, Beleave Inc. (BLEVF) isn’t “just another marijuana stock” but one that is built on a clear basis for investor transparency and holds a business plan designed for creating real shareholder value.
No Haze On The Road Ahead – Beleave Inc. (BLEVF) To Grow A “Craft” Market
According to Arcview Market Research and its research partner BDS Analytics, over the next 10 years, the legal cannabis industry will see much progress around the globe. Spending on legal cannabis worldwide is expected to hit $57 billion by 2027. The adult-use (recreational) market will cover 67% of the spending; medical marijuana will take up the remaining 33%.
That means for Canada’s cannabis industry, companies will quickly find that demand will be far beyond a simple joint. Just as the industry for alcohol is witnessing a shift toward craft spirits and artesian product offerings, the marijuana industry has been left with an open hole for bespoke cannabis. The hidden jewel that only a few investors have found (for now) is held by Beleave, Inc. (BLEVF); let’s explain.
Beleave’s wholly-owned subsidiary Beleave Kannabis Corp. is a licensed producer pursuant to the ACMPR with a purpose-built facility located in Hamilton, Ontario. The Company is currently operating out of its 14,500 sq. ft. facility with its additional 80,000 sq. ft. greenhouse expansion well underway and expected to come online by the beginning of the third quarter.
Beleave, Inc. (BLEVF) will have 65,000 sq. ft. of dedicated flowering space once its expansion is complete and is projected to yield 26,000 kilograms of dried cannabis annually. This fast-growing cannabis company has also completed the construction and commissioning of a new state-of-the-art industrial extraction laboratory at its production facility.
Research collaborations with principal investigators at Ryerson University, Department of Chemistry and Biology has also resulted in the development of a proprietary and large-scale industrial method for the extraction and purification of cannabinoid compounds from plant tissue.
The Result: Proprietary Systems That Yield The Highest Quality With Patents Pending!
The Company has filed a patent application in the United States and Canada for this extraction method, which involves the activation, purification, and extraction of cannabinoid active ingredients.
This method delivers high purity and yields of cannabinoid compound using a process that is scalable and efficient, and has been approved by Health Canada to be implemented for cannabis oil production!
Company projections already show initial production capacity of 200,000 mL of cannabis oil per week with an anticipated ability to scale this up to 1,000,000 mL by Q3 2018. The company has also been selected to operate one of Saskatchewan’s upcoming cannabis retail stores in anticipation of Canadian recreational cannabis legalization!
Beleave Inc. (BLEVF) Cracks The Code That Only The Big Names In Cannabis Know
Names like Canopy, Aphria, and others are hot on the M&A trail but very few “emerging” marijuana companies have seen the same light yet. The fact of the matter is that there is huge potential in taking on this model and Beleave, Inc. (BLEVF) has wasted no time with this strategy that will build a client platform off of an already existing network of thousands of patients, distribution channels, and industry relationships!
Medi-Green Acquisition
This was accomplished when the company acquired Medi-Green (consisting of Medi-Green, Karmacann, and My-Gro). Medi-Green has operated since 2015 and since then has opened 3 locations with a fourth location opened during the second quarter of 2018. There are plans to rapidly expand its footprint over the next 12 months as well. The company currently has an active patient base of approximately 4,000 with average patient subscriptions in the 2 to 3 gram per day range.
That means at average prescription sizes, this could yield sales of between 2,900 and 4,400 kilograms in annual sales from its initial three locations alone! Best of all, Medi-Green has no long-term debt and had annual revenue of approximately $2.9 Million in 2017.
Where most other companies creating a brand within the space need to build a customer-base, Beleave, Inc. (BLEVF) already has thousands of customers in the form of patients of Medi-Green. This also doesn’t take into account the huge opportunity that Saskatchewan and potentially countless other locations for recreational sales present to the company and its investors.
Procannmed S.A.S. Majority Acquisition
In June, Beleave (BLEVF) acquired 51% of Procannmed S.A.S, which steadily increased the global footprint of the company. The Colombian-based company is fully licensed for the cultivation, production, extraction and distribution of both tetrahydrocannabinol and cannabidiol medical cannabis.
Procannmed 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. This is in addition to a recent deal that expands the potential footprint in Colombia for up to another 67 acres of grow capacity.
Seven Oaks Inc. Acquisition
Initially, Beleave Inc. (BLEVF) signed a deal with Seven Oaks to distribute and sell Beleave’s line of products. Beleave Kannabis Corp. has been selected by the Manitoba Liquor and Lotteries Corporation to supply cannabis to Manitoba retailers, which made Seven Oaks one of the first cannabis brands available to consumers upon legalization.
In July, Beleave made the formal announcement that it had acquired 100% of Seven Oaks. What’s more is that according to the company, the Manitoba deals are expected to generate initial revenues of over $2,900,000.
Why Saskatchewan Is Such A Big Deal For Canadian Cannabis Companies (And Investors)
Unlike other provinces in Canada, Saskatchewan could pose one of the greatest opportunities for cannabis retailers and Beleave (BLEVF) is on the front lines. The reason? Saskatchewan has opted for a private model with a limit of 51 retail cannabis permits available.
So that means limited suppliers, uncapped demand, and Beleave just won the opportunity to join a select club of cannabis retailers. This is just the beginning.
What’s more is that this isn’t just limited to brick and mortar anymore. Since opting to legalize recreational cannabis, Beleave (BLEVF) has the ability to sell cannabis via ONLINE sales and shipping…yes, online in addition to the retail location!
With such a limited number of permits available, the online sales option for a company like Beleave could open huge doors for revenue growth.
This certainly sets the stage for something with the strong potential for Beleave, Inc. (BLEVF) but remember this isn’t your run-of-the-mill cannabis company either. In fact, Beleave has recently deployed a strategy that only the biggest names in the cannabis industry are doing right now in a direct effort to capitalize on Canada’s new market opportunity.
Canada Is Just The Beginning For Beleave Inc. (BLEVF): Opportunities Abroad
Canada is only one piece of Beleave’s (BLEVF) global strategy…Yes, GLOBAL Strategy. Its Colombian subsidiary, Procannmed S.A.S. recently reached a land-lease agreement that will allow for the development and expansion of Procannmed’s cultivation of cannabis for sale and extraction purposes.
Under the agreement, Procannmed will lease up to roughly 67 acres, or 2.9 million sq ft of private land for a nominal monthly fee of $100 USD per hectare. The term of the agreement is for five years, with an option to renew for an additional five years.
But what is really presented with this new inroad to Colombia? Colombia’s climate and geography give it an advantage over just about every other medical cannabis producing country in the world. As one of 13 countries located directly on the equatorial line, the sun rises and sets at virtually the same time every day, 365 days a year. This creates a natural 12-hour-daylight and 12-hour-darkness cycle that’s necessary for the cannabis plant when it enters its flowering stage.
In North America, it can cost cultivators tens of thousands of dollars to replicate these conditions with artificial heat and lighting. According to some sources, a gram of CBD extract can be produced for as low as $0.35 in Colombia, whereas in Colorado—where indoor cannabis production is commonly used—it would cost roughly $1.75.
This is how Colombia could soon produce an estimated one-fifth of the world’s total medical cannabis. And Beleave Inc. (BLEVF) is in pole position to be at the forefront of this boom.
Canada’s Passage Of Bill C-45 Continues To Heat Things Up
Right now Canada poses a very near-term opportunity for the simple fact that with the passing of Bill C-45 to legalize marijuana across the country, the Canadian market has far fewer barriers to entry such as banking or access to global trade.
The motion to legalize recreationally and the already legalized medical marijuana now places cannabis on the same level as things like alcohol and tobacco. Along with the Canadian Prime Minister taking a clear side on the issue in favor of legalization, the move has attracted much more interest into the country’s marijuana industry.
“We expect a more independent Senate will do its work, to look at legislation sent by the House of Commons, that they evaluate the positive impacts on the community, that they bring ameliorations if needed. But it is very clear that this bill responds first to an electoral promise that we made very clear during the election campaign and for which Canadians voted, and also that is something that we will continue to work on with different levels of government,” stated Trudeau in an interview.
But what’s more is that this move means Canada is the first G7 nation to legalize marijuana. According to several projections, the Canadian cannabis industry is expected to produce 800,000 kg of marijuana per year after the legalization. In addition, Canadians are estimated to incur a total expenditure of $7.17 billion on marijuana products in 2019, with overall consumption increasing by 35%, per a Deloitte report.
According to the latest projections from San Francisco-based ArcView Group, a marijuana research and investment firm, in partnership with Boulder-based BDS Analytics, a cannabis focused market researcher, the Canadian legal cannabis sector is estimated to generate $1.3 billion for 2018. Breaking down that sum, the medical market is projected to take in $600 million while the adult/recreational use market is estimated to pull in $700 million.
Final Words – Will You Capitalize?
If you remember Canopy Growth or Aphria during the early days of growth, you probably recall that these were fledgling companies with a big opportunity on the horizon, trading below $2.
Today those and many other cannabis stocks are trading at monstrous multiples and at staggering stock prices. Though they can act as a clear example of the opportunity, investors are now seeking the next wave of opportunity from the cannabis industry.
Beleave Inc. (BLEVF) not only has built the framework but has also supercharged its operating strategy with a strong and growing list of mergers and acquisitions. This alone could give the company a huge leg up when compared to its peers.
With the passage of Canada’s bill, C-45 this market could be set for explosive momentum in the coming months as October quickly approaches. While there still is a “calm before the storm,” now’s the time to identify new opportunities for the future market leaders of the cannabis industry.
Will you be ready to capitalize by the time the “switch is flipped” in the 4th quarter of 2018?
Disclaimer:
Pursuant to an agreement between an affiliate of MAPH Enterprises, LLC, Midam Ventures LLC and Beleave Inc., Midam has been paid $200,000 from the company and ZERO shares of Beleave Inc. for a duration of 6 weeks beginning June 18, 2018 and ending July 31, 2018 NOW EXTENDED TO 8/31/2018. We may buy or sell additional shares of (BLEVF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. Full Disclaimer Here
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