Curaleaf Holdings (CSE: CURA) is set to acquire an EU-GMP-certified cannabis processing facility in Portugal from Clever Leaves Holdings Inc. (NASDAQ: CLVR, CLVRW), thereby enhancing its flower processing capabilities in Europe.
The United States cannabis company announced the deal with Clever Leaves on Wednesday and the Portuguese facility and assets will be utilized by Curaleaf’s international subsidiary, Terra Verde LDA.
The facility in the city of Setúbal spans a total of 1,650 square metres and will be used for processing cannabis grown at Terra Verde’s cultivation facility in the country’s municipality of Alcochete. The enhanced processing capacity gained by acquiring the facility will enable Curaleaf to accelerate its cultivation at the Terra Verde operation as well.
Curaleaf is focused on meeting growing demands for cannabis in Europe, particularly in Germany and the United Kingdom.
“By streamlining our production processes and expanding our cultivation capabilities, Curaleaf International is setting the stage for responsible, robust growth over the next few years as cannabis adoption accelerates across Europe,” said Matt Darin, CEO of Curaleaf.
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Curaleaf observed a 14 per cent year-over-year increase in revenue in 2022 and had a cash balance of US$163 million. The company generated a gross profit of US$160.8 million during Q1 this year and had a cash position of US$115.8 million at the end of the quarter.
Clever Leaves recently made its first cannabis extract shipment to Switzerland and started importing its concentrates produced in Colombia to Portugal at the end of May for the company SOMAÍ Pharmaceuticals. The company is primarily based in Colombia and although it has cannabis infrastructure in Portugal it had never previously imported products there.
Clever Leaves also obtained a GMP certification from Brazillian authorities In May, enabling the company to provide cannabis goods to medical patients in the country. Clever Leaves is the only cannabis company with GMP certification in the European Union, Colombia and Brazil.
Cannabis has been decriminalized in Portugal but there is currently no adult-use market in the country. Medical cannabis was legalized in the European nation in 2018 and citizens are permitted to cultivate up to six plants for personal use.
Curaleaf stock rose by 6.67 per cent Wednesday to $4.48 on the Canadian Securities Exchange and has risen by 17.89 per cent over the past month.
Clever Leaves’ shares rose by 2.77 per cent to US$0.22 on the Nasdaq Stock Exchange, well below the exchange’s US$1.00 minimum requirement.
rowan@mugglehead.com
