Clever Leaves Holdings Inc. · OTC:CLVR
Clever Leaves — Q2 2021 Earnings Presentation
29 slides from Clever Leaves's earnings presentation, Aug 13, 2021
Slide 1: Cultivate Mojo, Create Value, Change Lives
yf Nasdaq Cultivate Mojo, Create Value, Change Lives. August 2021 NASDAQ listed
Slide 2: Why Clever Leaves?
Why Clever Leaves? 1 Low - cost, pharma - quality cannabis production through Colombian and Portuguese operations We believe we have an opportunity to scale efficiently as a result of structural cost advantages. $57 million cash on hand provides an opportunity for durability and ability to execute o
Slide 3: 2020/2021 Key Milestones and Accomplishments
2020/2021 Key Milestones and Accomplishments 2 Financial Highlights Operational & Regulatory Highlights Target 2021/2022 Key Milestones Execute on fulfilling customer orders and addressing regulatory requirements Begin distribution of branded medical cannabis products in Germany Commercially launch
Slide 4: Defining a Multi-National Operation (MNO)
3 • The cannabis industry has been defined by Canadian Licensed Producers (LPs) and US Multi - State Operators (MSOs) • Clever Leaves is focusing on being a leading Multi - national Operator (MNO), with several defining characteristics: Defining a Multi - National Operation (MNO) 3 Capital efficient
Slide 5: B2B Powered Platform
Distribution 4 B2B Powered Platform Genetics Cultivation Extraction Research & Development Brands Manufacturer and distributor of health and wellness products selling in over 15,000 retail locations in the US NORTH AMERICA EUROPE PORTUGAL Licensed producer headquartered in Lisbon, with an 85 ha prop
Slide 6: Colombia Leading the World
Colombia Leading the World 5 “Colombia looks to become the world’s supplier of legal pot” – Washington Post (March 10, 2018) Over 70% of all cut flowers imported into the US come from Colombia (1) Bogota 0 ƒ Equator Equatorial location creates ideal 12/12 hour cycle of sunlight for flowers “Given it
Slide 7: Ideally Suited for Industrial Scale Production
Ideally Suited for Industrial Scale Production 20 ƒ F (1) / 6.3 hours of daylight (1) Average cost per gram of $2.07 (2) Licensed cannabis companies: 730+ Average elevation: 567 ft Canadian cannabis 65 ƒ F (3) / 12 hours of daylight (4) Average cost per gram of $0.14 (5) Licensed producers: 5 - 30 (
Slide 8: Colombia regulatory, growing and cost advantages
• Regulatory Advantages – Decree authorizing export of dry cannabis flower – Well - positioned to capitalize on this opportunity leveraging 1.8 mm sq. ft. of cultivation space, possessing CUMCS GACP certified cultivation facility with EU GMP certification and 30 - plus cannabinoid genetics registere
Slide 9: Global Leader in Cultivation and Extraction
425,000 300,000 200,000 104,400 56,000 45,600 324,400 Valens Medipharm Neptune Clever Leaves Radiant Aurora Global Leader in Cultivation and Extraction Note: Per publicly available information Source: Company filings and corporate websites (1) Consists of 1.8M sq. ft. cultivation capacity in Colombi
Slide 10: EU GMP Certification Accelerates European Pharma Expansion
EU GMP can help to unlock higher price points and creates early mover advantage EU GMP Certification Accelerates European Pharma Expansion 9 Not EU GMP - Certified (1,000’s) EU GMP - Certified Flower Producers (10+) EU GMP - Certified Vertically Integrated Botanical Extractors (<10) Clever Leaves ac
Slide 11: Colombian Cultivation
Colombian Cultivation 10 Cultivating since November 2018 GACP - certified in May 2020 EU GMP - certified in July 2020 1.8M sq. ft. of licensed greenhouses 136 700 Select Canadian LPs Project Apollo Project Apollo’s Potential (hectares of cultivation) (1) Project Apollo has the potential to be over 5
Slide 12: Colombian Pharma-Grade Extraction Operations
Colombian Pharma - Grade Extraction Operations Systems Bulk Products End Products Three CO 2 extractors installed Distillation and isolation equipment THC removal capabilities Crude Oil Extracts Distillates Isolates Spray Bottles Tinctures EU GMP - Certified Laboratories Expansion EU GMP - certified
Slide 13: Portugal Operations are Scaling
Portugal Operations are Scaling 12 Clever Leaves Portugal is one of a limited number of licensed and GACP certified cannabis operations in Europe. Our operations generated first revenue in Q2, and expansion is underway for additional productive capacity and genetics capabilities Favorable Regulatory
Slide 14: Scale and Strategy Set Clever Leaves Apart from LatAm Operators
Current Internal Cultivation (sq. ft.) 1,900,000 ~1,300,000 (1) ~80,000 NA ~21,000 (2) NA EU GMP - Certified x X X X X X 2021 Extraction Quota for THC Products (3) 59,000 kg Not disclosed Not disclosed X X X Access to THC Flower Production (4) x (Portugal) X X x (By ParentCo ) x (By ParentCo ) x (By
Slide 15: Geography market comparison
Geography 2019 Population (1) 38 million 327 million 741 million 211 million 2019 GDP (1) (US$) $1.7 trillion $21.4 trillion $18.8 trillion $1.8 trillion Cannabis Legality Legal and regulated Federally illegal Country - specific Federally legal medical Start - up Costs Low West Coast: Very Low East
Slide 16: Germany: Leading European Medical Cannabis Demand
1 10 13 Germany Canada US Germany: Leading European Medical Cannabis Demand 15 Note: US$. 0.84 EURO = 1.00 USD as of 11/06/20 (1) Assumes 2% of Germany’s population of 83M are potential medical cannabis patients (2) Source: GKV - Spitzenverband . Numbers may not sum due to rounding. Note: some adjus
Slide 17: Brazil Requires Import of Medical Cannabis
Brazil Requires Import of Medical Cannabis 16 In December 2019, the Brazilian health authority, ANVISA, agreed to permit the importation of medical cannabis products while prohibiting domestic cultivation Before The previous medical cannabis structure in Brazil required patients to get individual au
Slide 18: Herbal Brands Overview
Herbal Brands Overview 17 • 30 - year brand history – Positioned as an active lifestyle line for active users – Control all aspects of products and distribution • 45+ employees, including sales, marketing, and product development, manufacturing – GMP manufacturing center in Tempe, AZ – Sales reps th
Slide 19: Project Change Lives: US Research Initiative
Project Change Lives: US Research Initiative 18 In June 2021, Clever Leaves pledged to commit a historic $25M retail value of medical cannabis products, at no cost, to researchers at any eligible U.S. academic or research organization • Clever Leaves aims to supply up to 250,000 bottles of pharmaceu
Slide 20: Building the B2B Sales Pipeline
Building the B2B Sales Pipeline Clever Leaves’ goal is to become a hub in the global cannabinoid supply chain 19 2021E Pipeline By Region (1) • Accelerate time to market • Ensures future supply availability via Latin America’s only EU GMP - certified cannabis facility • Enables asset - light go - to
Slide 21: Financial Projections
Financial Projections Financial Forecast Revenue Breakdown by Product 20 (US$ in M) CapEx Flower Herbal Brands Extracts Branded Cannabinoid Products 2021E 2020 $100 1) Assumes Portugal expands its cultivation facilities on its existing footprint to a total of 8 hectares, including 3 additiona l h ec
Slide 22: Quantifying Clever Leaves' Upside for Incremental THC Sales
Quantifying Clever Leaves’ Upside for Incremental THC Sales 1) United Nations INCB (https://www.incb.org/documents/Narcotic - Drugs/Status - of - Estimates/2021/EstJan21.pdf), 2) Assumes Portuga l expands its cultivation facilities on its existing footprint to a total of 11 hectares of cultivation,
Slide 23: Capital Structure
Capital Structure Valuation ($M) 22 Shares Outstanding (Treasury Stock Method) (M) 27.2 Price Per Share (1) $11.10 Pro Forma Diluted Equity Value 301.9 Plus: Debt 35.3 Less: Cash (57.1) Pro Forma Diluted Enterprise Value $280.2 Clever Leaves Holdings, Inc. Capitalization (shares in thousands) Gross
Slide 24: Clever Leaves Executives
Andrés Fajardo Director and President Gary Julien Independent Director Hank Hague Chief Financial Officer Etienne Deffarges Independent Director Julián Wilches Chief Regulatory Officer Kyle Detwiler Chairman and Chief Executive Officer Fmr. Senate Majority Leader Tom Daschle Advisory Board Member Ke
Slide 25: Investment Highlights
Investment Highlights 24 3 Pharmaceutical - grade, EU GMP - certified production authorized for export 2 Thoughtfully constructed, B2B focused multi - national operator 4 Positioned for significant growth, profitability and operating leverage 5 Talented and experienced leadership with operational an
Slide 26: Contact
Contact Clever Leaves Hank Hague Chief Financial Officer hank.hague@cleverleaves.com Investor Relations Cody Slach or Jackie Keshner Gateway IR CLVR@gatewayir.com (949) 574 - 3860
Slide 27: Disclaimer
Disclaimer No Representations or Warranties This presentation (this “Presentation”) is provided for informational purposes only. No representations or warranties, expre ss or implied are given in, or in respect of, this Presentation. To the fullest extent permitted by law in no circumstances will Cl
Slide 28: Disclaimer, Cont.
Disclaimer, Cont. Certain Unaudited Financial Projections This Presentation contains certain unaudited projected financial information of Clever Leaves, including a base forecast for 202 1, our financial forecast at maturity and our long - term target, as well as a forecast assuming incremental THC
Slide 29: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Non - GAAP Financial Measures In this presentation, Clever Leaves may reference certain non - GAAP financial measures, including Adjusted EBITDA. Non - GAAP meas ures do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to s
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