Colombian government declares Clever Leaves Colombia as 'Project of National and Strategic Interest' (SAMA/CLVR)
Clever Leaves, an MNO operator, gained a special priority status after its Colombian operations were named a Project of National and Strategic Interests ("PINE") by the Government of Colombia. The PINE designation will offer Clever Leaves accelerated and simplified administrative processes as the company continues to develop new products and services and bring them to market.
Beyond its primary operations in Colombia, Clever Leaves has operations and investments in Canada, Colombia, Germany, Portugal, and the United States. The licensed producer of pharmaceutical-grade cannabinoids is expected to close its SPAC merger with Schultze Special Purpose Acquisition Corp. (NASDAQ: SAMA) in early Q4.
The company is on track towards becoming a formidable competitor to Canadian LPs in the European market. The company has one of the most extensive cultivation and extraction operations in Latin America and is among the largest in the world, including Canada's licensed producers and top extractors. The company has the advantage of low-cost operations due to favorable climate conditions and cheaper labor than its Canadian peers. The average cost per gram by Clever Leaves' Colombian operation is USD 0.20 – Canadian operators run upwards of USD 1.71 (average of APHA, ACB, OGI, and TLRY). In a sign of its B2B market potential, Clever Leaves has already signed a regional supply agreement with Canopy Growth (CGC) – the Canadian company outsourced its LatAm operations to Clever Leaves in April 2020. Under the one-year deal, Clever Leaves will supply CGC with cannabis extract products with an option to renew for two additional years.
SAMA is on the Hedgeye Cannabis LONG Bias List.
Neptune Wellness Solutions secures supply agreement in British Columbia (NEPT)
Neptune has entered into an agreement with the British Columbia Liquor Distribution Branch (BCLDB), the wholesaler and public retailer of non-medical cannabis throughout the province, for the sale and distribution of Neptune's new proprietary Mood Ring product line. The agreement marks the launch of Neptune's Mood Ring product line for sale into the Canadian non-medical cannabis market. Products are expected to be available for purchase this fall through the BC Cannabis Store online, in addition to its 20 government-run retail locations across British Columbia. Additionally, the Mood Ring product line will be available to the 271 private licensed retailers in British Columbia. The initial product rollout will include Mood Ring's High CBD products and Mood Ring's Classic Hashish and Legacy Hashish. Mood Ring will deliver sustainable and premium CBD and THC products to the non-medical cannabis market.
4Front Ventures shifts focus to Illinois and exits Maryland (FFNTF)
4Front Ventures announced that it broke ground on a new Mission Dispensary in Calumet City, Illinois, its second dispensary in the state. The MSO plans to focus on the rapidly growing Illinois market that serves both adult-use and medical marijuana. The new store is slated to complete construction and begin serving customers before the end of the year. 4Front also announced that it had closed its sale of three Maryland dispensaries to Philadelphia-based Ethos for approximately $5.5M. This closed transaction concluded 4Front's exit of Maryland and was part of a larger deal with Ethos announced in May. In the May deal, 4Front agreed to sell its stake in cannabis retail licenses in Maryland and Pennsylvania for $18M.
