TOCANCIPÁ, Colombia - Clever Leaves Holdings Inc. (NASDAQ: CLVR, CLVRW), a multinational medicinal cannabis producer, announced today its decision to voluntarily delist its common shares and warrants from the Nasdaq Stock Market.
The move is part of a strategic reevaluation by the company's Board of Directors, aiming to reduce the regulatory burden and associated costs of maintaining its listing and fulfilling reporting obligations under the Securities and Exchange Act of 1934.
The company has notified Nasdaq of its intent to remove its securities from the exchange and plans to file a Form 25 with the SEC around May 6, 2024, to commence the delisting process. Trading of Clever Leaves' securities on Nasdaq is expected to conclude on or about May 16, 2024.
Subsequently, the company intends to file a Form 15 with the SEC to suspend its reporting duties, effectively ceasing its obligation to submit periodic reports such as Forms 10-K, 10-Q, and 8-K. The deregistration of its securities is anticipated to become effective 90 days after the Form 15 filing.
The Board's decision reflects careful consideration of several factors, including past and potential future non-compliance with Nasdaq's listing standards and the significant financial and operational costs related to Exchange Act and Nasdaq requirements. Clever Leaves has faced challenges in meeting these demands, which have led to considerable operating expenses.
Clever Leaves operates out of Colombia, focusing on the production of cannabinoid active pharmaceutical ingredients (API) and finished products, including flower and extract forms. The company prides itself on its environmentally sustainable and cost-effective production methods, which are in line with the most rigorous pharmaceutical quality certifications.
This announcement is based on a press release statement from Clever Leaves, and the documents pertaining to the delisting and deregistration process will be available on the company's website. The forward-looking statements included in the press release reflect the company's projections and expectations, subject to risks and uncertainties that could cause actual results to differ.
Clever Leaves has cautioned readers not to place undue reliance on these forward-looking statements, which are valid only as of the date made.
InvestingPro Insights
Amidst Clever Leaves Holdings Inc.'s strategic shift to delist from the Nasdaq Stock Market, a closer look at the company's financial health is provided by InvestingPro data. With a market capitalization of approximately $7.23 million USD, Clever Leaves is currently trading at a low Price / Book multiple of 0.3. This metric, which compares the company's current market price to its book value, suggests that the stock may be undervalued relative to its assets, a point of interest for value investors.
Despite the company's decision to reduce regulatory costs, InvestingPro Tips indicate that analysts are expecting sales growth in the current year, which could signal potential for future revenue increases.
Still, it is essential to note that Clever Leaves has experienced a net loss over the last twelve months, reflected in a negative P/E ratio of -0.45. This indicates that the company has not been profitable during this period, which is a critical consideration for investors.
The company's stock price has seen a significant uptrend over the last six months, with a 74.78% increase, yet it has fallen by 56.63% over the last year, highlighting the stock's volatility. Investors interested in the full spectrum of insights on Clever Leaves can find additional InvestingPro Tips, with more than 10 available at: https://www.investing.com/pro/CLVR. For those seeking to delve deeper into the company's financials and market performance, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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