Clever Leaves Cannabis Company Exits NASDAQ Amid Financial Strains, Stock Plunges -60%, Investors Impacted
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 30 2024
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Source: Benzinga
- Clever Leaves Delisting from NASDAQ: Clever Leaves Holdings Inc. plans to voluntarily delist from NASDAQ and deregister its securities, aiming to terminate reporting obligations to the SEC.
- Delisting Process: The company will file a Form 25 with the SEC around May 6 to start the delisting process, with the final trading day on NASDAQ expected to be around May 16. A Form 15 will be filed to cease reporting duties.
- Impact on Investors: After delisting, Clever Leaves' securities will no longer trade on NASDAQ but may be traded over-the-counter, potentially affecting liquidity. Investors are advised to consult financial advisors regarding their investments.
- Financial Performance: Clever Leaves reported a revenue increase in 2023, with strong growth in cannabinoid sales and operational efficiency improvements leading to a reduction in expenses.
- Reasons for Delisting: The decision is part of a wider restructuring plan due to factors like non-compliance with Nasdaq's listing requirements, financial burdens of regulatory compliance, and the aim to reduce operational costs associated with public trading and reporting demands.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
