Clever Leaves (US:CLVR)2023-11-09 21:07Operations and Capacity - The company owns approximately 1.8 million square feet of greenhouse cultivation capacity in Colombia and has a pharmaceutical-grade extraction facility capable of processing 108,000 kilograms of dry flower per year [320]. - The company received European Union Good Manufacturing Practices (EU GMP) certification for its Colombian operations, positioning it as one of the largest quality-certified licensed capacities for cannabis cultivation and extraction globally [321]. - The company operates in two segments: Cannabinoid and Non-Cannabinoid, with the Cannabinoid segment focused on international commercialization of cannabinoid products [325]. - The non-cannabinoid segment, through Herbal Brands, distributes wellness products to over 20,000 retail locations across the United States, leveraging a GMP-compliant, FDA registered facility [322]. - The company’s operations span multiple countries, including Colombia, Germany, the United States, and Canada, indicating a broad market presence [323]. Strategic Goals and Partnerships - The company aims to develop a low-cost global supply chain for high-quality cannabis and wellness products, targeting competitive pricing and sustainable production [323]. - The company is focused on strategic partnerships with cannabis and pharmaceutical businesses to provide lower-cost products and reliable supply [324]. Internal Controls and Compliance - Management identified material weaknesses in internal controls, including insufficient trained professionals and inadequate segregation of duties, impacting financial reporting [180][181]. - Remediation activities are ongoing, with plans to enhance controls and add technical accounting resources to improve the control environment [185]. Regulatory Environment - The company’s future growth may be influenced by potential changes in U.S. federal laws regarding cannabinoid distribution [322].