Benzinga | Jun 16, 2021 11:05AM EDT

Clever Leaves Cannabis Co Enters Mexico Via Supply Deal With CBD Life

Multinational cannabis operator, Clever Leaves Holdings Inc. (NASDAQ:CLVR) is poised to enter the Mexican market through a supply deal with CBD Life Holdings SAPI de CV.

Under the terms of the agreement, the New York-based company will act as an active pharmaceutical ingredient supplier for the development and production of CBD Life's medical cannabis products.

Initially, Clever Leaves will supply the Mexican cannabis company with CBD isolate while looking to be the ongoing supplier for CBD Life.

"As a multinational cannabis operator with substantial operations in Latin America, it has always been one of our top goals to identify leaders in the region and build long-lasting commercial relationships," said Clever Leaves CEO Kyle Detwiler on Wednesday.

CBD Life's products are available in over 18 000 points of sale in Mexico. Its product portfolio currently features topicals, beverages and food supplements infused with hemp-derived CBD.

"CBD Life's brand positioning and local exposure are attractive, but it's their commitment to high-quality, pharmaceutical-grade medical cannabis products that makes this an ideal partnership," Detwiler added.

Janko Ruiz de Chavez, COO and co-founder of CBD Life, believes the partnership with Clever Leaves will "further propel our domestic and international expansion efforts thanks to their unmatched expertise and certifications that meet the highest standards and regulatory compliance equivalencies in most countries."

According to a recent report from Prohibition Partners for Latin America, the Mexican medical cannabis market is forecast to reach $60 million by 2024.

And while the country's lower chamber passed a revised version of the bill to legalize recreational marijuana in March, on April 30 Mexico's Congress failed to pass adult-use legalization orders that were handed down by five Supreme Court rulings, marking the fourth time the deadline has been missed.

Photo by Esteban Lopez on Unsplash