Schultze Special Purpose Acquisition Corp. and Clever Leaves International Inc. have jointly announced today that they entered into a non-binding letter of intent pursuant to which SAMA and Clever Leaves would enter into a business combination, with the combined company becoming a publicly-traded company on NASDAQ
- The parties intend to execute a definitive agreement in June with a closing expected in the Q3 2020
- No assurances can be made that the parties will successfully negotiate and enter into a definitive agreement, or that the proposed transaction will be consummated on the terms or timeframe currently contemplated, or at all
- Any transaction would be subject to the approval of the two companies’ boards, regulatory and shareholder approvals, as well as other customary conditions
- 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
About Clever Leaves
With operations and facilities in Colombia, Portugal, the United States, Canada and Germany, Clever Leaves is a vertically integrated, multi-national cannabis operator. The Company has successfully developed a low-cost, pharmaceutical-grade cannabis cultivation and extraction platform, operating under Colombian Good Manufacturing Practices (GMP) for cannabis production. Clever Leaves is also in the process to become one of the few -and the only one in LATAM - cannabis companies to be granted a European Union Good Manufacturing Practice (“EU GMP”) certification for extracts, subject to successful completion of the process. The Company currently cultivates in over 1.9 million square feet of greenhouses, making it one of the largest cannabis cultivation and extraction companies globally, while operating at a fraction of the industry’s average production costs. Clever Leaves employs a staff of approximately 500 globally and has raised approximately $120 million to date, including substantial debt and equity investments from leading institutional investors with a demonstrated track record in the cannabis sector.
Clever Leaves has a burgeoning global distribution network, including whole or partial ownership of two medical cannabis distribution companies in Germany as well as a branded nutraceutical producer and distributor in the US, currently distributing non-cannabis products. The Company’s significant investments are anticipated to drive sales growth in rapidly expanding cannabis markets within Europe, Australia, the Middle East, and South America. Clever Leaves also recently secured a regional supply agreement with Canopy Growth, which reaffirms Clever Leaves’ position as a leading cannabis supplier in Latin America. Details of Clever Leaves’ financial profile will be disclosed upon the announcement of a definitive agreement, if executed.