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Is Beleave an Acquisition Target?

April 13, 2017

 

In case you haven't noticed the trend, late-stage applicants to become an authorized licensed producer of cannabis under Health Canada's ACMPR are being acquired left and right.

 

In early March, Aurora Cannabis announced that they were going to buy a late-stage applicant called Peloton Pharmaceuticals out of bankruptcyOver the last few weeks, we've seen the trend continue.

 

Canopy Growth Corp. announced last week that they entered into an agreement to acquire a late-stage applicant, rTrees. Matica Enterprises Inc. also announced last week that they signed a definitive agreement to acquire a 70% interest in another late-stage applicant, RoyalMax. To round out last week, Valens GroWorks Corp. entered an agreement to acquire a 100% interest in Royal Green Acres, yet another late-stage applicant. 

 

Now we're looking across the board to see what other late-stage applicants are ripe for acquisition. One company that stands out is Beleave Inc. (CSE:BE) (OTC:BLEVF). According to their listing profile on the CSE's website, "Beleave Inc. is a biotech company focused on the production of medical marijuana in Canada. The Company's wholly-owned subsidiary First Access Medical Inc. has applied for a license to cultivate and sell medical marijuana at its facility pursuant to the Access to Cannabis for Medical Purposes Regulations outlined by Health Canada."

 

Beleave is indeed a late-stage applicant, having announced that their pre-licensing facility inspection took place on March 15th. There are 7 stages to the ACMPR licensed producer application process. The pre-licensing inspection is the penultimate stage of the process, leaving only the licensing itself to go. 

 

Beleave currently has a market cap. of 62,971,997.20 CAD, which is equivalent to roughly 47,239,038.16 USD. While this may seem like a loft sum of money to pay for a late-stage applicant, it's not. An approved applicant has the potential to generate far more for whoever owns it.

 

Canopy Growth Corp. on the other hand currently has a market capitalization of 1,605,952,069 CAD. That is over 25x the market capitalization of Beleave. There are other companies up in Canada with the capital necessary to make an acquisition like this, but Canopy seems to be a likely suitor given the hints being dropped on social media. Recently, Beleave posted a photo from the Tweed facilities, as seen below. This is not proof of anything other than a friendly visit, but since Tweed Inc. is owned by Canopy Growth Corp. we are certainly curious of what might be brewing. 

 

 

Certainly, there are other late-stage applicants accessible through the public markets. Umbral Energy for instance has a 75% stake in PhyeinMed Inc., which recently entered stage 6 of the ACMPR application process. Stay tuned as we ramp up coverage of the late-stage applicants. 

 

D/M/O

 

Now check out the cannabis companies listed on the Tel Aviv Stock Exchange.

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