NEWS BRIEF

Clever Leaves seeks Nasdaq listing via merger with SAMA

Clever Leaves could become the first medical cannabis company with its main operations in Colombia to list on the Nasdaq stock market.

The company said that it entered into a nonbinding letter of intent (LOI) to combine its business with Schultze Special Purpose Acquisition Corp. (SAMA).

The two parties are aiming to sign a definitive agreement in June and close the deal during the third quarter of 2020.

Once the deal closes, Clever Leaves’ shareholders would own “a majority of the equity in the combined public company which will be listed on Nasdaq,” according to the announcement.

“SAMA’s cash balances, currently in excess of $130 million, would be used primarily to fund the combined company’s near-term operating expenses, capital expenditures, working capital, and potential M&A opportunities,” a news release noted.

Clever Leaves currently has production assets in Colombia and Portugal.

It also has distribution assets in Germany.

In Colombia, Clever Leaves recently secured a supply agreement with Canada’s Canopy Growth.

The company already exported CBD products from its Colombian facility to several countries, including the Australia, Brazil, Poland and the United Kingdom, a spokesperson told Marijuana Business Daily.

According to the release, Clever Leaves is “in the process of becoming one of the few cannabis companies in the world, and the only cannabis company in Latin America, to be granted a European Union-Good Manufacturing Practice certification for extracts,” a key requirement to export extracts to EU countries such as Germany.

Clever Leaves employs about 500 people and has raised approximately $120 million of capital to date, the release noted.

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