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Clever Leaves Raises $14M Amid COVID-19 Crisis

April 15, 2020 2:43 pm
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Clever Leaves Raises $14M Amid COVID-19 Crisis

Versión en Español en El Planteo: Cannabis en Colombia: Clever Leaves Recauda USD$14 Millones

Hemp extracts producer Clever Leaves International Inc. has completed the first closing of its Series E financing, successfully raising $14 million. With this raise, the company has managed to raise $120 million in total.

The funding was supported by institutional investors, with Cowen acting as an exclusive placement agent.

"Receiving such strong support from prominent institutional investors in the first closing of our Series E round further validates the Clever Leaves strategy,” Clever Leaves CEO Kyle Detwiler said in a statement.

The financing is expected to help the company achieve its "ultimate goal of transforming the cannabis supply chain on an international scale," Detwiler touted.

The capital is expected to help the company continue commercializing product from its cultivation and extraction operations in Colombia as well as complete its licensing process in Portugal.

Clever Leaves plans to use the raised capital to back its commercialization activities, support expansion of its operations in Portugal, enhance its brands, and, additionally, to support the improvement of its sales platform Clever Leaves 360, business activities in Colombia, its Europe-focused distribution channels.

The fundraising comes during a particularly tough time for startups seeking venture capital. According to Forbes, citing CB Insights, venture capital funding had started to dwindle even before the COVID-19 outbreak triggered an economic downturn. Activity dropped 16% in the fourth quarter from the previous quarter. 

In the first quarter of 2020, US venture deals fell 9% quarter-over-quarter, "with some of the decline likely attributable to the COVID-19 pandemic," per a report from CB Insights.

Photo courtesy of Clever Leaves