Be­leave signs cannabis re­tail deal with Rollins Group

Stockwatch Daily - - CONSUMER GOODS - Mr. An­drew Wnek re­ports

BE­LEAVE INC. has en­tered into a strate­gic al­liance agree­ment with Rollins Group Inc. to open and op­er­ate cannabis re­tail stores across Canada.

Rollins will ap­ply for cannabis re­tail sales li­cences across the coun­try to open and op­er­ate cannabis re­tail stores. Be­leave is sup­port­ing Rollins to se­cure lease covenants for all planned lo­ca­tions. Rollins will be re­spon­si­ble for man­ag­ing the day-to-day op­er­a­tions of the stores.

Key take­aways of the agree­ment:

• Rollins plans to open its first nine lo­ca­tions in On­tario with an ad­di­tional 31 lo­ca­tions planned, pend­ing ap­proval in the prov­ince of On­tario.

• Rollins has agreed to pur­chase up to 1,000 kilo­grams of Be­leave’s dry cannabis prod­uct (or equiv­a­lents) an­nu­ally per lo­ca­tion.

• Rollins shall pro­vide Be­leave with an op­tion to pur­chase up to 15 per cent of all out­stand­ing eq­uity. Be­leave and Rollins have cre­ated a joint re­la­tion­ship com­mit­tee to re­view the growth and per­for­mance of the re­tail lo­ca­tions, com­pris­ing An­drew Wnek, chief ex­ec­u­tive of­fi­cer of Be­leave, Bo­jan Kra­sic, pres­i­dent and chief fi­nan­cial of­fi­cer of Be­leave, and David Shek­thter and Daniel Stern, the prin­ci­pal part­ners at Rollins.

“We’re very happy to be work­ing with David and Daniel, who have a track record of suc­cess in the cannabis in­dus­try,” said Mr. Wnek. “We look for­ward to meet­ing our cus­tomers in th­ese new stores and serv­ing the com­mu­ni­ties around them.”

Rollins has agreed to deal ex­clu­sively with Be­leave, not di­rectly or in­di­rectly en­ter­ing into any agree­ment that would com­pete with or con­flict with the terms of the agree­ment, with­out the ex­press writ­ten con­sent from Be­leave.

About Be­leave Inc.

Be­leave is a ver­ti­cally in­te­grated Cana­dian cannabis com­pany head­quar­tered in Oakville, Ont., that op­er­ates stream­lined fa­cil­i­ties through­out Canada to cul­ti­vate high-qual­ity cannabis flower, oil, and ex­tracts with fi­nanced ca­pac­ity in ex­cess of 150,000 kilo­grams per year.

We seek Safe Har­bor.

Roger Em­manuel Fer­reira, Mark He­sel­ton, Bo­jan Kra­sic, Mark Miles, Vasil­ios Pana­gio­takopou­los, An­drew T Wnek

(BE) Shares: 419,215,391

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