Clever Leaves Colombia to supply extracted products to Canopy LATAM, Canopy Growth’s Latin American Subsidiary
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.
