International cannabis operator Clever Leaves has just closed a $14M Series E – demonstrating that people are still investing in cannabis, even in a recession. Clever Leaves is a licensed producer of pharmaceutical-grade medical cannabis and hemp extracts. To date, the company has raised $120 million.
”Receiving such strong support from prominent institutional investors in the first closing of our Series E round further validates the Clever Leaves strategy,” said Kyle Detwiler, CEO of Clever Leaves. “This financing demonstrates Clever Leaves’ ability to withstand the market headwinds in these extremely challenging times and will help us achieve our ultimate goal of transforming the cannabis supply chain on an international scale. The capital we’ve raised will also enable us to continue commercializing product from our world-class cultivation and extraction operations in Colombia as well as to complete our licensing process in Portugal.”
Clever Leaves said that it anticipates raising additional capital in the coming months and expects to primarily use the proceeds to support its commercialization efforts, further develop existing brands, and expand its operations in Portugal. The funds may additionally support the expansion of the company’s recently launched direct-to-business sales platform, Clever Leaves 360, which offers pharmaceutical-grade cannabis extracts and finished products fit for a broad range of industries. Proceeds from the financing may also be used to further enhance the company’s operations in Colombia and to continue building out its distribution channels in Germany and throughout Europe.
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 brands include Iqanna, Esenia, Musa, Herbal Brands Inc. and Clever Leaves 360, with strategic investments in Cansativa and Lift & Co.
Cowen served as exclusive placement agent for the financing and a majority of the Series E capital was invested by leading institutional investors with a demonstrated track record in the sector.