InterCure (NASDAQ: INCR) and Clever Leaves (NASDAQ: CLVR) today announced the execution of an exclusive multi-year cultivation, marketing and distribution agreement.
Over the term of the Agreement, InterCure will have access to Clever Leaves’ highTHC medical cannabis flower to serve several medical cannabis markets, including the Israeli market. As part of the partnership, Clever Leaves will cultivate InterCure’s high quality strains to launch InterCure’s EU-GMP compliant branded products within the EU, UK and South American markets.
This is an excellent agreement for InterCure, as it will allow it to manufacture its brands in Europe, in a facility with a GMP-EU standard, without any set-up costs of such facilities, and without the long period of time it would have taken it to set up such facilities itself.
Also, the agreement does not contain minimum quantities for production or import for which Intercure undertakes.
Clever Leaves shares dropped about 90% in the past year and are traded on the Nasdaq at a value of about $ 30 million.
This type of agreement proves the high branding of Israeli companies in Europe. It proves that even companies like Clever Leaves, which has its own brands, prefer to promote Israeli brands in the European market.
“Establishing exclusive long-term strategic partnerships with world-class partners supports our international expansion plans and profitable growth strategy” says Alex Rabinovitch, CEO, InterCure, adding “we are proud to partner with Clever Leaves, a pioneering multinational operator which shares our commitment of providing high quality pharmaceutical grade medical cannabis products to patients around the globe.”
Pursuant to the Agreement, Clever Leaves and InterCure agreed to collaborate on certain technical matters for the development of new products in an attempt to satisfy the needs of patients in different countries.
“We are enthusiastic for partnering with InterCure, a company with multinational presence and strong leadership position in Israel”, said Andrés Fajardo, President and incoming CEO of Clever Leaves, adding “InterCure’s high-quality standards, their knowledge and experience in genetics and developing new products, as well as their strong distribution network, will potentialize Clever Leaves’ plans to bring the benefits of medical cannabis to different geographies around the world, including Israel.”