Beleave Receives No Bids In Stalking Horse Process, Shareholders To Receive Nothing Following Asset Sale
The demand for cannabis assets has evidently fallen off a cliff. Beleave Inc (CSE: BE) provided an update earlier this week in relation to its stalking horse sales process for effectively all of its assets, and the results, are disappointing. Despite targeting 46 potential buyers at the onset of the process, not a single bid was received by the deadline.
Beleave originally began the stalking horse sales process on June 17, with bids being due a month later. At the time of announcement, the company had an outstanding stalking horse bid for an undisclosed amount with Hegedus Consulting Services. which it referred to as a “going concern transaction.” Following the formal stalking horse process, despite conducting site tours and revealing key information to potential buyers, no qualified bids were received for the company’s assets.
The result, is that the stalking horse bidder is now deemed to be the successful bidder of all the firms assets and operations. The consideration to be paid, while undisclosed, is “expected to provide a financial recovery to the Beleave Group’s creditors however it appears unlikely at this time that there will be any residual value to Beleave’s shareholders.”
In short: shareholders get nothing.
A final timeline for the completion of the sale transaction has not been provided by the company.
Beleave Inc has been halted by IIROC as a result of the transaction, having been issued a cease trade order.
Information for this briefing was found via Sedar and Beleave Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
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