(RTTNews) - Multinational cannabis company Clever Leaves International Inc. intends to list on Nasdaq through a merger with Schultze Special Purpose Acquisition Corp. (SAMA, SAMAW, and SAMAU).
Schultze Special Purpose Acquisition or SAMA and Clever Leaves said they have signed a letter of intent or LOI to enter into a business combination, with the combined company to become a publicly-traded company on Nasdaq. The two parties expect to sign a definitive agreement in June and close the deal in the third quarter of 2020.
Under the terms of the LOI, Clever Leaves' shareholders will own a majority of the equity in the combined public company.
"Strengthening our balance sheet and listing on NASDAQ would be important achievements for our company as we are eager to accelerate the commercialization of our high-quality products and to expand our distribution into markets around the world," said Kyle Detwiler, CEO of Clever Leaves.
Clever Leaves has operations and facilities in Colombia, Portugal, the U.S., Canada and Germany. The company is a licensed producer of pharmaceutical-grade cannabis as well as hemp extracts.
SAMA is a blank check company formed for the purpose of entering into a merger, asset acquisition, or other similar business combination. The company's sponsor is an affiliate of alternative investment management firm, Schultze Asset Management, LP.
SAMA's cash balances of more than $130 million would be used primarily to fund the combined company's near-term operating expenses, capital expenditures, working capital, and potential merger and acquisition opportunities.
Clever Leaves has developed a low-cost, pharmaceutical-grade cannabis cultivation and extraction platform that operates under Colombian Good Manufacturing Practices or GMP for cannabis production.
Clever Leaves is also in the process of becoming the only cannabis company in Latin America to be granted a European Union Good Manufacturing Practice or EU GMP certification for extracts. The company currently cultivates in over 1.9 million square feet of greenhouses.
Clever Leaves has a global workforce of 500 and has raised about $120 million of capital to date.
The company recently secured a regional supply agreement with Canopy LATAM Corp., a wholly owned subsidiary of Canadian cannabis company Canopy Growth Corp.
Under the terms of the deal, Clever Leaves said it will supply Canopy LATAM with extracted products from its GMP-certified, licensed cannabis processing system and cultivation sites in Colombia.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
