Clever Leaves Holdings Inc.

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Cleverleaf's financial results for the fourth quarter and full year ended December 31st, 2020. Joining us today are Cleverleaf's CEO, Kyle Detweiler, and the company's CFO, Hank Page. Before I introduce Kyle, I remind you that during today's call, including the question and answer session, statements that are not historical facts, including any projections or guidance, statements regarding future events or future financial performance, or statements of intent or belief, are forward-looking statements and are covered by the safe harbor disclaimers contained in today's press release and the company's public files with the SEC. Actual outcomes and results may differ materially from what is expressed in or implied by these forward-looking statements. Specifically, please refer to the company's Form 10-K for the year ended December 31, 2020, which was filed prior to this call, as well as other filings made by clever leads with the SEC from time to time. These filings identify factors that could recall results that differ materially from those four looking statements. Please also note that during this call, management will be disclosing adjusted EBITDA. This is a non-GAAP financial measure as defined by SEC Regulation G. A reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure and a statement disclosing the reasons why company management believes that adjusted EBITDA provides useful information to investors regarding the company's financial condition and results of operations are included in today's press release that is posted on the company's website. With that, I'll turn the call over to Kyle.

Thank you, and good afternoon, everyone. It is a pleasure to speak with you today on our first earnings call as a public company. We are proud to have ended 2020 on a strong note by reaching this important milestone, capping off a year of significant operational and financial progress towards our growth strategy. So, For the benefit of new listeners on the call, please let me provide a quick overview of our story and how we got to where we are today. Cleverleaves is a multinational cannabis company with operations and investments in the United States, Canada, Colombia, Germany, and Portugal. Cleverleaves was founded around a very simple idea. that cannabis production facilities have not been constructed where they made economic or environmental sense. Instead, they were built where cannabis was first made legal. Our goal is to think several years ahead, and our goal is to build an industry-leading, cost-effective B2B supply chain that provides high-quality cannabis and wellness products to companies and customers around the world. Across the geographies in which we operate, We emphasize ecologically sustainable, large-scale cultivation, and pharmaceutical-grade processing. At present, we believe we are one of the largest legal international producers of cannabis as measured by capacity. In the US cannabis industry, quality is traditionally defined by THC potency levels, celebrity endorsements, brand narratives, or the convenience and prestige of a dispensary's retail location. Quality in the international cannabis industry is much less subjective, often sharing attributes with a traditional pharmaceutical market. As a result, we have secured the coveted EU GMP certification in Colombia to differentiate ourselves from the tens of thousands of cannabis operators in the world, and we believe we are one of only a few companies to have successfully obtained this credential, especially for an integrated cultivation and extraction operation. The EU GMP certification required a four-year effort that would have been difficult to replicate today because of logistical limitations imposed by COVID. We believe it illustrates through recognized national health agencies that our cannabinoid products are produced with similar pharmaceutical quality standards, rigor, and traceability as other prescribed medication in Europe. From a financial perspective, we have focused on capital efficiency and growth as we've expanded our global footprint to address the legalization of cannabis around the world in both markets which have already initiated legalization as well as for future markets if and when legalization occurs. By constructing our facilities, we're agronomically efficient as opposed to in locations which must be shielded from snow and supplied with artificial lighting, we believe we have created a long-term sustainable business model which is better for the environment and better for the bottom line. Through our expansive platform, our goal is to pioneer a new model in the cannabis industry, that of the multinational operator, or M&O. In the landscape defined by Canadian licensed producers, and US multi-state as well as single-state operators, we are aiming to distinguish ourselves through our low-cost cultivation, geographic flexibility, and distribution model enabled by regulatory permits and licenses. We also expect to gain a distinct operational advantage from each of our global markets, particularly in our four core geographies, Colombia, the US, Germany, and Portugal. In Colombia, we are the first company in the country's history to have legally exported cannabis. Following the trends of other agricultural operators who have migrated to equatorial regions, in Colombia, we benefit from optimal growing conditions for cannabis, with 12 hours of natural sunlight that allow for year-round cultivation. We expect that this will allow us to achieve approximately 90% savings as measured in our costs of production. We have a sizable cultivation footprint of 1.8 million square feet with an option to acquire another 73 million square feet of agricultural land for open field cannabis production. Our pharmaceutical grade extraction facility, which exclusively uses high quality CO2 extraction equipment, was the first medical cannabis facility to receive EU GMP certification in Latin America. We currently have the capacity to extract over 100,000 kilograms of dried flower annually. We believe our presence in Columbia offers a robust foundation for global growth, as we have also received authorization from the Colombian Technical Quotas Group to manufacture or process up to 59,000 kilograms of cannabis dried flower. Although we are not currently extracting our full allocated amount, This allocated amount represents approximately 50% of Columbia's total quota and about 18% of the world's 2021 legal medical cannabis production quota. Additionally, due to our scale and leadership in the region, the Colombian government recently recognized Cleverleaf as a PINE, which roughly translates to Project of National and Strategic Interest. We are grateful for the continued support we have received from the Colombian government as well as the associated regulatory agencies as we work towards leveraging this capacity to meet the demand of our international distribution network in geographies where cannabis has been legalized. Further, we were able to navigate the complexities between Colombia and the United States during the recent importation of our first U.S.-bound commercializable CBD shipment from Columbia and with our 2020 imports of psychoactive cannabis for R&D purposes, which utilize DEA import permits. Our goal is to improve our position to supply high quality, low cost, raw materials to the U.S. market, which would help us capture our share of the growth that the CBD industry is expected to generate or if cannabis is legalized in the United States. We also believe we are well equipped to capture share in the US THC industry, again, depending on the shape of future regulations. In the United States, our 2019 acquisition of Herbal Brands, a branded nutraceutical company, provides us access to a nationwide distribution network of over 15,000 retail locations. If favorable regulatory developments occur and cannabis achieves US federal legality, our goal is to leverage this network as we prepare for widespread cannabinoid distribution. In the meantime, the fact that we do not have cannabis touching operations in the United States allowed us to list on NASDAQ when we went public via a transaction with a SPAC on December 18, 2020. While we wait for US regulatory reforms, we will focus on growing EBITDA from our herbal brand's nutraceutical business. Before we discuss Germany, Portugal, and other market highlights, I'd like to turn the call over to our new CFO, Hank Haag, to provide more details on our financial performance for the fourth quarter and full year. Hank joined Cleverleaf last month and brings extensive financial leadership to the team, having formerly served as the CEO of Aidens Scientific, and the CFO of Abacus Health Products, which was acquired by Charlotte's Web last year. We are pleased to welcome Hank to our company as we enter our next phase, where we will work on growing and expanding our commercial footprint and distribution network around the world as local regulations permit.

Hank, over to you.