Amid challenges faced by the global cannabis market, Clever Leaves Holdings CLVR CLVRW has made a decisive move to maintain its listing on the U.S. stock exchange.
"As a result of the Reverse Share Split, every 30 common shares of the Company will automatically be converted into one common share, reducing the number of issued and outstanding common shares from approximately 45.7 million to approximately 1.5 million, based on the number of shares outstanding as of August 10, 2023," per a release from the multinational company.
Related Content: Clever Leaves Shares Trading Higher On Its Colombian Cannabis Launching In Australia
What Happened
As reported by MJBizDaily, Clever Leaves has undertaken a 30-to-1 share consolidation following warnings from NASDAQ about its declining share prices.
This action was taken by Clever Leaves after receiving alerts, similar to many other Nasdaq-listed marijuana businesses.
The NASDAQ platform mandates companies to maintain a minimum $1 bid price on their listings.
In a bid to safeguard its place on the platform, Clever underwent a reverse stock split, which took effect after the end of trading on Aug. 24.
Related Content: Cannabis Stock Gainers And Losers From August 24, 2023
Clever’s Cost Savings
This move came after Clever Leaves declared a $3.6 million net loss for the quarter ending June 30, with revenues nearing $5 million.
"With the restructuring initiatives implemented over the past year, including our wind-down in Portugal, we reduced our cash expenditure run rate and driven increased cost savings in the first half of 2023 resulting in $5.1 million in cash as of the end of the second quarter,” stated CEO Andres Fajardo.
Related Content: Clever Leaves Reports 21% Revenue Growth And 10% Gross Profit Rise In 2Q 2023
Clever Leaves is one of the largest cannabis companies with operations in Canada, Colombia, Germany and the U.S.
It is also the first cannabis company in Latin America to be listed on the NASDAQ with a European Union Good Manufacturing Practices Certification (EU GMP) for flowers and extracts.
Price action: Shares of CLVR were down 9.85% at $4.12 per share after the bell on Monday evening.
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