Beleave has become the latest in a wave of Canadian cannabis companies seeking creditor protection.
The Toronto-based company will apply for a creditor protection order from the Ontario Superior Court of Justice on Friday, according to a news release.
“The Beleave Group is insolvent and faces an imminent liquidity crisis,” according to a court filing.
“Cash flows have been negative since inception … Beleave Group has significant liabilities and a number of creditors have demanded payment, have sued or have threatened to sue.”
Beleave’s assets were worth about 23.3 million Canadian dollars ($17.3 million) at the end of 2019, the filing notes, against liabilities of about CA$18 million.
Auxly Cannabis Group launched a lawsuit against Beleave in late 2019, alleging the company breached the terms of a CA$5 million funding deal.
Other Canadian cannabis firms to seek creditor protection in recent months include:
Shares of Beleave trade on the Canadian Securities Exchange as BE.
Documents related to Beleave’s creditor protection application are available from proposed monitor Grant Thornton.