CAN (ON): Beleave granted creditor protection to continue sale of assets

Beleave, together with its affiliated entities Beleave Kannabis, Seven Oaks., 9334416 Canada, O/A Medi-Green and My-Grow, Beleave Kannabis Abbotsford and Beleave Kannabis Chilliwack, received an order for creditor protection from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act. The Company will be making its application to Court for the Initial Order on June 5, 2020.

The Initial Order would include, among other things, a stay of proceedings in favour of the Beleave Group and the appointment of Grant Thornton Limited as monitor of the Beleave Group.

"The Beleave Group sought creditor protection under the CCAA in order to receive a stay of proceedings that will allow the Beleave Group to facilitate a going concern transaction with Hegedus Consulting Services, or identify and conclude a transaction with a superior offer," the team with the company explains.

"Pursuant to the Proposed Transaction, the Beleave Group and the Purchaser have agreed to: (i) a debtor-in-possession loan to fund the proposed CCAA proceedings (“Dip Loan“); and (ii) an offer by the Purchaser to purchase substantially all of the assets of the Beleave Group pursuant to an asset purchase agreement that will be the “stalking-horse” in a sale process designed to solicit higher and better offers."

"It is expected that the Beleave Group’s day-to-day obligations to employees and key suppliers of goods and services, from and after the filing day, will continue to be met. While under CCAA protection, management of the Company would remain responsible for the day-to-day operations of the Company under the general oversight of the Monitor."

For more information:
Kevin Keagan
+1 (647)-449-7352 

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