Clever Leaves to Receive US$11.4 Million Over Three-year Deal
NEW YORK, Jan. 12, 2021 (GLOBE NEWSWIRE) — Clever Leaves Holdings Inc. (NASDAQ: CLVR, CLVRW) (“Clever Leaves” or the “Company”), a leading multi-national operator and licensed producer of pharmaceutical-grade cannabinoids, announced today that it has entered into a three-year “take or pay” partnership agreement with Entourage Phytolab, a rapidly growing pharmaceutical cannabis research and development company in Brazil. Clever Leaves will be paid approximately US $11.4M over the term of the agreement to supply certain finished products for distribution through the pharmaceutical and the compassionate care markets in Brazil. In a second agreement, Clever Leaves will also provide active pharmaceutical ingredients (APIs) for proprietary formulations of Entourage. Supply of the finished products will commence in January 2021, with the APIs also targeting Q1 of 2021.
Entourage Phytolab, a leading research and development cannabis company with a strong reputation in Brazil, develops registered, safe and effective drugs to increase patients’ access to the therapeutic potential of cannabinoids and will use Clever Leaves’ API in its first botanical drug candidate. According to data and research company, New Frontier Data, Brazil represents the largest addressable market in Latin America with a population of 210 million and a rapidly growing patient network for medical cannabis.
“With their regulatory expertise in Brazil as well as their clinical research experience, Entourage Phytolab is an ideal partner and represents an incredible opportunity for Clever Leaves to distribute cannabinoid products throughout Brazil,” said Kyle Detwiler, CEO of Clever Leaves. “We expect our robust product development expertise and EU GMP certified facilities, which satisfy the Brazil National Health Surveillance Agency’s (ANVISA) strict quality standards, positions us to enable our partners to capitalize on growing patient demand as the Brazilian cannabis industry begins to accelerate.”
“Entourage Phytolab started its activities in 2015 and is a leader in the research and development of CBD and THC based medicines globally,” said Caio Santos Abreu, Founder and CEO of Entourage Phytolab. “After five years of R&D, we are launching our first products in 2021 and the partnership with Clever Leaves is an important step for us to build the best portfolio of cannabis-based medicines in the country.”
“This agreement expands Clever Leaves’ presence in one of the largest markets in South America as we continue to establish formidable commercial partnerships around the world,” said Andrés Fajardo, President of Clever Leaves. “Equipped with high quality products, Entourage Phytolab has the potential to reach thousands of patients across the country through their market access and capabilities, and these products will set the standard for quality and value for Brazilian patients.”
About Clever Leaves Holdings Inc.
Clever Leaves is a multi-national cannabis company with an emphasis on ecologically sustainable, large-scale cultivation and pharmaceutical-grade processing as the cornerstones of its global cannabis business. With operations and investments in the United States, Canada, Colombia, Germany and Portugal, Clever Leaves has created an effective distribution network and global footprint, with a foundation built upon capital efficiency and rapid growth. Clever Leaves aims to be one of the industry’s leading global cannabis companies recognized for its principles, people, and performance while fostering a healthier global community. Clever Leaves has received multiple international certifications that have enabled it to increase its export and sales capacity from its Colombian operations, including European Union Good Manufacturing Practices (EU GMP) Certification, a Good Manufacturing Practices (GMP) Certification by Colombia National Food and Drug Surveillance Institute – Invima, and Good Agricultural and Collecting Practices (GACP) Certification. Clever Leaves was granted a provisional license in Portugal from Infarmed – the Portuguese health authority – that allows Clever Leaves to cultivate, import and export dry flower for medicinal and research purposes.
For more information, please visit https://cleverleaves.com/en/home/.
About Entourage Phytolab
Founded in 2015 in Sao Paulo, Entourage Phytolab is a Brazilian biotech pioneer in the research and development of cannabis-based medicines. Entourage’s R&D team is creating a new generation of cannabinoid drugs, proprietary superior bioavailability formulations and conducting regulatory clinical trials. The first products will hit the market in 2021 and will be used to treat problems such as epilepsy, chronic pain, cancer pain, insomnia, and arthritis.
For more information, please visit http://entouragelab.com/en/index.html
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 “anticipate,” “believe,” “continue,” “estimate,” “expect,” “forecasts,” “future,” “intend,” “may,” “outlook,” “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 are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Factors that may cause such differences include, without limitation, expectations with respect to future operating and financial performance and growth, including if or when Clever Leaves will become profitable; Clever Leaves’ ability to execute its business plans and strategy and to receive regulatory approvals; potential litigations; global economic conditions; geopolitical events, natural disasters, acts of God and pandemics, including, but not limited to, the economic and operational disruptions and other effects of COVID-19; regulatory requirements and changes thereto; access to additional financing. 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.
+55 11 96488-0040
Sean Mansouri, CFA or Cody Slach
Caio Santos Abreu
Chief Executive Officer