Fire at Clever Leaves: Causes Are Being Investigated

Astructural fire broke out at the Clever Leaves company, located in Pesca, Boyacá, which is dedicated to the production of medicinal cannabis. The fire was allegedly caused by a short circuit and destroyed the company’s post-harvest facilities, causing a large-scale emergency.

At the scene, multiple fire departments and the Red Cross had to respond to the situation, including several firefighters who suffered heat stroke during the intervention . The emergency raised concerns about both material damage and potential impacts on employee safety.

Clever Leaves is a major player in the global medical cannabis industry, and this incident could have significant repercussions on its operations and supply of cannabis-derived products. Company sources said that after the emergency, protocols were activated to recover production to 100%.

“We continue to supply our clients based on the inventory and the production plan that we were already implementing,” they said. On the other hand, they indicated that they are working to repair the damages to the infrastructure and insisted that they continue commercial operations to fulfill their commitments to clients.

Who is Clever Leaves?

Clever Leaves has been recognized for its commitment to legality and sustainability in the production of medicinal cannabis, with a focus on generating formal employment in rural areas of Colombia. The company has stood out for meeting rigorous international standards, which has allowed its rapid expansion and positioning in the global market.

Founded in 2016, Clever Leaves has specialized in the cultivation, processing and distribution of cannabis-derived products for therapeutic purposes. Its focus has been on developing low-cost operations in Colombia, taking advantage of the country’s favorable climate and agricultural expertise to produce on a large scale. Since its founding,

Clever Leaves has obtained several international certifications, including the EU GMP (Good Manufacturing Practices) certification, which has allowed it to expand its operations to international markets in Europe, Latin America, the United States and Australia. This expansion has been driven by the growing demand for high-quality cannabinoids for the development of pharmaceutical, nutraceutical and cosmetic products.

The company has seen significant growth in the production and export of dried cannabis flower and extracts , especially to Europe and North America, where the medical cannabis market has shown an increase in acceptance and therapeutic use. Despite regulatory challenges in various jurisdictions, Clever Leaves has managed to establish itself as a trusted supplier in these emerging markets.

In 2020 , Clever Leaves decided to list on the NASDAQ stock exchange through a merger with a special purpose acquisition company (SPAC), allowing it to gain broader access to investment capital. However, in May 2024, the company decided to delist from the NASDAQ as part of a broader restructuring plan, seeking to reduce costs and focus on its most profitable operations.

The decision to delist its shares from NASDAQ was prompted by a significant drop in the value of its shares, which plummeted by more than 60% following the announcement. This move is also part of a strategy to reduce reporting obligations to the US Securities and Exchange Commission (SEC) , allowing the company to operate with greater flexibility in an increasingly competitive market.

Despite these challenges, Clever Leaves has reported an increase in revenue, especially in cannabinoid sales, which increased by 39% in 2023. The company employs nearly 300 people, mostly in Colombia , where it continues to invest in expanding its cultivation and processing operations.

In addition, Clever Leaves has established strategic alliances with various pharmaceutical and consumer goods companies , which has allowed it to expand its product portfolio and strengthen its presence in the global market.

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(Featured image by Natalia Marcelewicz via Unsplash)

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First published in EL TIEMPO. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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