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Clever Leaves Takes Bold Action to Safeguard NASDAQ Listing Amid Uncertainty in the Global Cannabis Market

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Amid the challenges faced by the global cannabis market, Clever Leaves Holdings (NASDAQ: CLVR, CLVRW) has implemented a strategic move to maintain its listing on the U.S. stock exchange.

In response to the recent decline in share prices and warnings from NASDAQ, Clever Leaves undertook a 30-to-1 share consolidation. This reduced the number of issued and outstanding common shares from approximately 45.7 million to approximately 1.5 million, based on the shares outstanding as of August 10, 2023.

Related Content: Clever Leaves’ Launch of Colombian Cannabis in Australia Drives Higher Share Trading

Key Developments

According to a report by MJBizDaily, Clever Leaves’ share consolidation was prompted by NASDAQ’s requirement for listed companies to maintain a minimum $1 bid price.

By implementing a reverse stock split, Clever Leaves aimed to secure its position on the NASDAQ platform. The split took effect after the end of trading on August 24.

Related Content: Cannabis Stocks: Winners and Losers of August 24, 2023

Cost Optimization Measures

This decision followed Clever Leaves’ announcement of a $3.6 million net loss for the quarter ending June 30. However, the company reported revenues of nearly $5 million.

β€œBy implementing restructuring initiatives and winding down operations in Portugal, we have reduced our cash expenditure and achieved increased cost savings in the first half of 2023. This has resulted in $5.1 million in cash reserves as of the end of the second quarter,” stated CEO Andres Fajardo.

Related Content: Clever Leaves Reports 21% Revenue Growth and 10% Gross Profit Increase in Q2 2023

Clever Leaves is a major player in the cannabis industry, with operations in Canada, Colombia, Germany, and the U.S. It is also the first Latin American cannabis company listed on the NASDAQ, holding a European Union Good Manufacturing Practices Certification (EU GMP) for its flowers and extracts.

Price Performance: CLVR shares declined by 9.85% to $4.12 per share after the market closed on Monday.

For more insights into the cannabis stock market and the key players, join us at the Benzinga Cannabis Capital Conference in Chicago on September 27 and 28. Visit bzcannabis.com for all the details.

Image by El Planteo

Source: Benzinga.com

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