The Nasdaq Exchange is looking a bit green today. Why? Well, after months of trading through a special purpose acquisition company, Clever Leaves is coming public. Starting today, the cannabis play will be trading on the Nasdaq under the ticker CLVR. So what do you need to know about CLVR stock now? And why does this SPAC merger news matter?
To start, investors should be familiar with the basics of the story. Essentially, Clever Leaves has been trading through Schultze Special Purpose Acquisition (NASDAQ:SAMA). After shareholders took a favorable vote on the SPAC merger, Clever Leaves is making its debut.
With that in mind, here are 12 things to know about CLVR stock and the Clever Leaves SPAC merger:
- Schultze Special Purpose Acquisition first came public in December 2018 under the leadership of distressed debt investor George Schultze.
- Since then, the blank-check company has been largely flying under the radar.
- However, it announced the Clever Leaves SPAC merger in July 2020.
- At the time, the two companies announced that the post-merger business would have an enterprise value near $255 million.
- Now, as CLVR stock debuts, Clever Leaves will have $80 million of cash on its balance sheet.
- Importantly, Clever Leaves focuses on the medical and recreational cannabis markets.
- It currently operates in Colombia, Portugal, the United States, Canada and Germany.
- Across those operations, it has 1.9 million square feet of greenhouses.
- Additionally, Clever Leaves exports its medical-use cannabis to 14 different countries.
- Beyond its cannabis brands, Clever Leaves also works on developing unique strains of cannabis, as well as cannabis research and development.
- The company says its focus is on ecologically sustainable and large-scale cultivation.
- Investors should also note that the company emphasizes its compliance with federal and state laws.
What to Know About Clever Leaves and CLVR Stock
So why does this really matter? And why should investors pay attention to CLVR stock?
Well, investors likely know that times have been tough for cannabis businesses. Especially since the start of the novel coronavirus pandemic, some of the leading Canadian firms have really struggled. This comes as companies sort out supply-demand imbalances and also combat black-market suppliers. Plus, legalization in the U.S. at the federal level is still in the works. On that backdrop, we have seen things starting to really shake up in the industry. Earlier this week, Tilray (NASDAQ:TLRY) and Aphria (NASDAQ:APHA) announced a huge new merger.
Now, Clever Leaves wants to come public, relying on its SPAC merger to help it expand and grow its business. Additionally, as the company distributes non-cannabis products through one of its consumer brands, it believes that it has good access to the U.S. while it waits for federal legalization. And that is exactly where any intrigue in CLVR stock comes from.
Remember, the cannabis landscape looks to be rapidly changing. President-elect Joe Biden has promised to federally decriminalize marijuana. The House of Representatives just passed the Marijuana Opportunity Reinvestment and Expungement (MORE) Act. Plus, on Election Day, several more states decriminalized or legalized recreational cannabis use. With more set to do the same in 2021, CLVR stock may be picking the perfect time to start trading.
As with anything in Washington, it is impossible to predict the future. However, given the timing of the SPAC merger news, investors should keep Clever Leaves and CLVR stock on their radar.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.