Clever Leaves Completes Sale of Processing Assets in Portugal to Curaleaf International Subsidiary
05 July 2023 - 10:00PM
Clever Leaves Holdings Inc. (NASDAQ: CLVR, CLVRW) (“Clever Leaves”
or the “Company”), a global medicinal cannabis company, announced
it has closed the sale of the assets, including lab and processing
equipment, previously used in its EU-GMP certified cannabis
processing facility in Setúbal, Portugal, as controlled by its
wholly owned subsidiary, Clever Leaves Portugal Unipessoal, Lda.
The assets were sold to Terra Verde, Lda., an affiliate of Curaleaf
Holdings, Inc. (CSE: CURA) (OTCQX: CURLF), for gross proceeds of
approximately €2.5 million. Proceeds from the sale are expected to
improve Clever Leaves’ cash position. Clever Leaves plans to use
the proceeds for working capital and general corporate purposes.
The processing facility previously leased by the
Company, which houses the lab and processing equipment, includes
900 sq. meters of EU-GMP-certified factory space and 750 sq. meters
of warehousing space. Under the terms of the asset purchase
agreement, Terra Verde, Lda. has agreed to purchase the facility
leasehold improvements; all installed equipment needed for drying,
trimming, curing, and packaging; and the facility’s current quality
system procedures.
“Closing the sale of our Portuguese processing
assets represents an important next step in the wind-down of our
Portuguese operations, while consolidating our cultivation and
manufacturing processes in our EU-GMP certified facilities in
Colombia,” said Andres Fajardo, CEO of Clever Leaves. “We are proud
to have sold these assets to Curaleaf, one of the most prominent
global cannabis companies, as it is a testament to the standards at
which we operate and do business. We would like to thank the
Curaleaf team for their partnership in this sale process, and we
will work towards completing the sale of our remaining Portuguese
agricultural asset, which we expect to sell by the end of this
calendar year.
“The proceeds from this sale will add
non-dilutive capital to our balance sheet, with the aim of
strengthening our levers towards optimized cash management. We look
forward to making additional progress on the wind-down process as
we continue our restructuring initiatives to meaningfully reduce
cash burn.”
About Clever Leaves Holdings
Inc.
Clever Leaves is a global medical cannabis
company. Its operations in Colombia produce EU GMP cannabinoid
active pharmaceutical ingredients (API) and finished products in
flower and extract form to a growing base of B2B customers around
the globe. Clever Leaves aims to disrupt the traditional cannabis
production industry by leveraging environmentally sustainable,
ESG-friendly, industrial-scale and low-cost production methods,
with the world’s most stringent pharmaceutical quality
certifications. Clever Leaves announces material information to the
public through a variety of means, including filings with the U.S.
Securities and Exchange Commission (the “SEC”), press releases,
public conference calls, and its website
(https://cleverleaves.com). Clever Leaves uses these channels, as
well as social media, including its Twitter account
(@clever_leaves), and its LinkedIn page
(https://www.linkedin.com/company/clever-leaves), to communicate
with investors and the public about Clever Leaves, its products,
and other matters. Therefore, Clever Leaves encourages investors,
the media, and others interested in Clever Leaves to review the
information it makes public in these locations, as such information
could be deemed to be material information. Information on or that
can be accessed through Clever Leaves’ websites or these social
media channels is not part of this release, and references to
Clever Leaves’ website addresses and social media channels are
inactive textual references only.
FORWARD-LOOKING STATEMENTS
This press release includes certain statements
that are not historical facts but are forward-looking statements
for purposes of the safe harbor provisions under the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements generally are accompanied by words such as “aim,”
“anticipate,” “believe,” “can,” “continue,” “could,” “estimate,”
“evolve,” “expect,” “forecast,” “future,” “guidance,” “intend,”
“may,” “opportunity,” “outlook,” “pipeline,” “plan,” “predict,”
“potential,” “projected,” “seek,” “seem,” “should,” “will,” “would”
and similar expressions (or the negative versions of such words or
expressions) that predict or indicate future events or trends or
that are not statements of historical matters. Such forward-looking
statements as well as our outlook for 2023 are subject to risks and
uncertainties, which could cause actual results to differ from the
forward-looking statements. Important factors that may affect
actual results or the achievability of the Company’s expectations
include, but are not limited to: (i) our ability to continue as a
going concern; (ii) our ability to maintain the listing of our
securities on Nasdaq; (iii) our ability to implement our
restructuring initiatives; (iv) expectations with respect to future
operating and financial performance and growth, including if or
when Clever Leaves will become profitable; (v) Clever Leaves’
ability to execute its business plans and strategy and to receive
regulatory approvals (including its goals in its five key markets);
(vi) Clever Leaves’ ability to capitalize on expected market
opportunities, including the timing and extent to which cannabis is
legalized in various jurisdictions; (vii) global economic and
business conditions, including recent economic sanctions against
Russia and their effects on the global economy; (viii) geopolitical
events (including the ongoing military conflict between Russia and
Ukraine), natural disasters, acts of God and pandemics, including
the economic and operational disruptions and other effects of
COVID-19; (ix) regulatory developments in key markets for the
Company's products, including international regulatory agency
coordination and increased quality standards imposed by certain
health regulatory agencies, and failure to otherwise comply with
laws and regulations; (x) uncertainty with respect to the
requirements applicable to certain cannabis products as well as the
permissibility of sample shipments, and other risks and
uncertainties; (xi) consumer, legislative, and regulatory sentiment
or perception regarding Clever Leaves’ products; (xii) lack of
regulatory approval and market acceptance of Clever Leaves’ new
products which may impede its ability to successfully commercialize
its products; (xiii) the extent to which Clever Leaves’ is able to
monetize its existing THC market quota within Colombia; (xiv)
demand for Clever Leaves’ products and Clever Leaves’ ability to
meet demand for its products and negotiate agreements with existing
and new customers, including the sales agreements identified as a
part of the Company’s 2023 strategic growth objectives; (xv)
developing product enhancements and formulations with commercial
value and appeal; (xvi) product liability claims exposure; (xvii)
lack of a history and experience operating a business on a large
scale and across multiple jurisdictions; (xviii) limited experience
operating as a public company; (xix) changes in currency exchange
rates and interest rates; (xx) weather and agricultural conditions
and their impact on the Company’s cultivation plans, (xxi) Clever
Leaves’ ability to hire and retain skilled personnel in the
jurisdictions where it operates; (xxii) Clever Leaves’ ability to
remediate a material weakness in its internal controls over
financial reporting and to develop and maintain effective internal
and disclosure controls; (xxiii) potential litigation; (xiv) access
to additional financing; and (xxv) completion of our construction
initiatives on time and on budget. The foregoing list of factors is
not exclusive. Additional information concerning certain of these
and other risk factors is contained in Clever Leaves’ most recent
filings with the SEC. All subsequent written and oral
forward-looking statements concerning Clever Leaves and
attributable to Clever Leaves or any person acting on its behalf
are expressly qualified in their entirety by the cautionary
statements above. Readers are cautioned not to place undue reliance
upon any forward-looking statements, which speak only as of the
date made. Clever Leaves expressly disclaims any obligations or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in its expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based.
Clever Leaves Investor
Inquiries:Cody Slach or Jackie KeshnerGateway Group,
Inc.+1-949-574-3860CLVR@Gateway-grp.com
Clever Leaves Press
Contact:Maria PetsanasKCSA Strategic
Communications+1-917-692-6673cleverleaves@kcsa.com
Clever Leaves Commercial
Inquiries:Andrew MillerHead of Global Business
Development+1-416-817-1336andrew.miller@cleverleaves.com
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