Beleave Group obtains order for creditor protection from Ontario Superior Court of Justice

Justice Barbara Conway has approved the appointment of Grant Thornton Limited as the monitor under the Companies’ Creditors Arrangement Act

In 2018, the Believe Group bought Medi-Green, which operates cannabis clinics in Ontario and Quebec. Medi-Green Facebook photo.

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A Toronto-based cannabis company says it expects to be able to meet its day-to-day obligations to employees and “key suppliers of goods and services” after seeking protection from its creditors.

Beleave Inc., which is listed on the Canadian Securities Exchange and the OTC, has obtained a court order from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act.

Justice Barbara Conway has approved the appointment of Grant Thornton Limited as the monitor of Beleave Inc. and its associated companies. They include medical cannabis clinics in Ontario and Quebec operated under the Medi-Green brand.

The Beleave Group also includes Beleave Kannabis Corp., Beleave Kannabis Abbotsford Inc., Beleave Kannabis Chilliwack Inc., and Seven Oaks Inc.

In addition, Conway declared that no proceeding or enforcement process can be launched against Beleave Inc. and its associated companies through to June 15 “or such later date this Court may order”.

“The Beleave Group has identified a purchaser interested in funding the CCAA process and acting as a stalking horse purchaser through those proceedings,” Conway wrote in her endorsement. “The Applicants submit that the CCAA process will provide some breathing room for the group to facilitate the sale of the business as a going concern to the stalking horse purchaser or to identify and conclude a transaction with a superior offer.

“They seek no relief with respect to the proposed stalking horse arrangements on today’s date,” Conway continued. “The purpose of today’s hearing was to determine only whether an initial order should be granted staying any proceedings against the Applicants for a 10 day period and permitting the limited DIP [debtor-in-possession] financing and charges sought in the order.”

According to a Beleave news release, the purchaser is Hegedus Consulting Services Inc.

Conway’s endorsement noted that the Beleave Group has total debts exceeding $5 million. She approved an administration charge of $500,000 to reflect the amount of work that will be done by the monitor and its lawyer.

In addition, Conway approved a directors’ charge of $200,000 “given their potential exposure for taxes and source deductions and the lack of available liability insurance”.

Charlie Smith

I'm the editor of the Georgia Straight newspaper in Vancouver, as well as a CannCentral contributor.

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