Clever Leaves Colombia to supply extracted products to Canopy LATAM, Canopy Growth’s Latin American Subsidiary
BOGOTÁ, Colombia and SMITHS FALLS, Ontario, April 21, 2020 (GLOBE NEWSWIRE) — Clever Leaves, a leading multinational operator (MNO) and licensed producer of pharmaceutical-grade cannabis and hemp extracts, and Canopy LATAM Corporation (“Canopy LATAM”), a wholly owned and controlled subsidiary of Canopy Growth Corporation (“Canopy Growth”) (TSX:WEED, NYSE:CGC), announce that both parties have entered into a regional supply agreement.
Under the terms of the agreement, Clever Leaves will supply Canopy LATAM with extracted products from its GMP-certified, licensed cannabis processing system and cultivation sites in Colombia. Clever Leaves has delivered the first of these products to Canopy Growth under the terms of the one-year agreement, which includes an option to renew for two additional years.
“With Canopy Growth’s large-scale capacity and network in Latin America, we expect this agreement to provide Clever Leaves with significant near-term revenue,” said Kyle Detwiler, CEO of Clever Leaves. “It also validates Colombia as a key source for the future of the cannabinoid supply chain, an important milestone for both Canopy Growth and Clever Leaves. Certified with Good Manufacturing Practices (GMP) to produce medical cannabis, Clever Leaves is well positioned to supply companies such as Canopy Growth, enhancing their returns on capital invested and enabling greater focus on downstream commercial activities.”
“Clever Leaves has proven its capabilities in Colombia and through this supply agreement, Canopy LATAM is furthering the implementation of its asset-light model and accelerating time to market with regionally produced GMP-certified medical cannabis products,” said Antonio Droghetti, Managing Director, Canopy LATAM. “This agreement strengthens Canopy LATAM’s regional supply chain and demonstrates our continued commitment to working with industry partners to further the growth of Colombia and the LATAM region’s medical cannabis industry.”
Clever Leaves also recently received in Colombia the quotas to cultivate, extract, and commercialize through exporting high-THC medical cannabis. With this approval, Clever Leaves is permitted to provide psychoactive products to global customers subject to the required import permits being granted, positioning the company to become one of the largest suppliers of medical cannabis globally.
About Clever Leaves
Clever Leaves is a multi-national cannabis company with a mission to operate in compliance with federal and state laws and with an emphasis on ecologically sustainable, large-scale cultivation and processing as the cornerstones of its global cannabis business. Clever Leaves is a leading vertically integrated producer of medical cannabis and hemp extracts and is currently cultivating over 1.8 million square feet of greenhouses under Good Agricultural and Collection Practices (GACP) in Colombia. Clever Leaves’ Colombian operation obtained its Good Manufacturing Practices (GMP) certification from INVIMA, Colombia’s food and drug regulatory agency, after inspection of its top-of-the-line extraction facility and is being evaluated for certification under European Good Manufacturing Practices (EU GMP). Clever Leaves’ first extraction facility is currently capable of extracting 2,400 kilograms of dried flower per month, with expansion underway to increase expected extraction capacity to 9,000 kilograms of dried flower per month by mid-2020. In November 2019, Clever Leaves received authorization from INFARMED I.P., the Portuguese regulatory authority, to start cultivation operations in Portugal. Based on the pre-license received in Portugal, Clever Leaves Portugal is currently cultivating its first medicinal cannabis crop on its 90-hectare farm. Clever Leaves is one of the world’s largest hemp and medical cannabis producers, with a global footprint encompassing brands, extraction facilities, cultivation operations and other investments across Canada, Colombia, Germany, Portugal, and the United States.
About Canopy Growth
Canopy Growth (TSX:WEED, NYSE:CGC) is a world-leading diversified cannabis, hemp and cannabis device company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms, as well as medical devices through Canopy Growth’s subsidiary, Storz & Bickel GMbH & Co. KG. From product and process innovation to market execution, Canopy Growth is driven by a passion for leadership and a commitment to building a world-class cannabis company one product, site and country at a time. Canopy Growth has operations in over a dozen countries across five continents. Canopy Growth’s medical division, Spectrum Therapeutics is proudly dedicated to educating healthcare practitioners, conducting robust clinical research, and furthering the public’s understanding of cannabis, and has devoted millions of dollars toward cutting edge, commercializable research and IP development. Spectrum Therapeutics sells a range of full-spectrum products using its colour-coded classification Spectrum system as well as single cannabinoid Dronabinol under the brand Bionorica Ethics.
Canopy Growth operates retail stores across Canada under its award-winning Tweed and Tokyo Smoke banners. Tweed is a globally recognized cannabis brand which has built a large and loyal following by focusing on quality products and meaningful customer relationships. From our historic public listing on the Toronto Stock Exchange and New York Stock Exchange to our continued international expansion, pride in advancing shareholder value through leadership is engrained in all we do at Canopy Growth. Canopy Growth has established partnerships with leading sector names including cannabis icons Snoop Dogg and Seth Rogen, breeding legends DNA Genetics and Green House Seeds, and Fortune 500 alcohol leader Constellation Brands, to name but a few. Canopy Growth operates eleven licensed cannabis production sites with over 10.5 million square feet of production capacity, including over one million square feet of GMP certified production space. For more information visit www.canopygrowth.com
Notice Regarding Forward Looking Statements
This news release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Often, but not always, forward-looking statements and information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements or information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Canopy Growth or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements or information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including the Company’s ability to satisfy provincial sales contracts or provinces purchasing all cannabis allocated to them, and such risks contained in the Company’s annual information form dated June 25, 2019 and filed with Canadian securities regulators available on the Company’s issuer profile on SEDAR at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information or forward-looking statements in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information and forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information or forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities laws.