The cannabis company signs a SPAC deal that will allow it to be traded publicly
Another cannabis venture is coming to the public stock market and its main operations are located in Colombia. Clever Leaves International announced that it has completed the agreement to join forces with a special purpose acquisition company (SPAC), so it can be taken to the public stock market, with plans to be listed on the NASDAQ stock exchange. The multinational cannabis venture will now be Clever Leaves Holdings and expects to enter the NASDAQ exchange with a value of around $225 million, according to the announcement.
Clever Leaves is able to enter the US stock market through the SPAC deal made with Schultze Special Purpose Acquisition Corp. The arrangement has approved by all of the members of both companies’ boards and, although the merger is still in progress, it is expected to be concluded by the end of this year. Schultze Special Purpose Acquisition is one of those companies that exist to be able to enter into merger deals and other kinds, and it will partially handle the management of the new venture.
Clever Leaves expects to make a significant entry to the market with a “cash balance of $111 million at closing.” The cannabis venture claims that this amount of cash is “significantly in excess of the company’s capital needs.” In addition to that, the company is expecting to “achieve positive free cash flow by the fourth quarter of 2021.”
Clever Leaves seems to be making the right moves. Recently, it announced its European Union-Good Manufacturing Practice certification – the first one for a Latin American cannabis producer. It was given “to produce Active Pharmaceutical Ingredients (API), semi-finished and finished cannabis products for medical purposes,” in the Colombia-based facilities.