It’s all going pear shaped in Portugal
Clever Leaves announced today that it will abandon its operations in Portugal, having proceeded with the collective dismissal of 63 workers. According to Press release, the company will concentrate all cannabinoid cultivation and production operations in Colombia to leverage existing operational efficiencies. Clever Leaves expects the operational transition to generate approximately $7 million in cost savings by the end of 2023.
Clever Leaves Holdings Inc. is listed on the Nasdaq stock exchange (CLVR, CLVRW) and is a multinational production company licensed to operate in Portugal since 2020 and had received EU-GMP certification do Infarmed IP for the manufacture of dried cannabis flower as API (Active Pharmaceutical Ingredient) and finished product last November 2022. The company now announces the closure of all operations in Portugal, as part of its ongoing restructuring initiatives. In line with this restructuring plan, Clever Leaves expects flower cultivation in Portugal, post-harvest processes and manufacturing activities to cease completely by the end of the first quarter of 2023.
“By exclusively growing and producing our cannabinoid products in Colombia, we intend to leverage our existing cost efficiencies in the country as we grow our dried flower supply,” said Andres Fajardo, CEO of Clever Leaves. “We believe this transition will allow us to optimize our production infrastructure and increase cost savings, positioning us to more effectively compete in the global medical cannabis market. While our decision was extremely difficult, we believe it is in the best interest of the company as it positions us more effectively to meet our customers’ needs. In addition, we plan to incorporate the substantial learnings from our work in Portugal to increase the success of our operations in Colombia”, said the CEO.
“This next phase of our restructuring work builds on the progress we have made with improving our cost structure and capital efficiency throughout 2022. We look forward to building on our sustainable competitive advantages in Colombia and making further progress in 2023 as a multinational leaner and more agile operator.”