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 first quarter ended March 31st, 2021. Joining us today are Cleverleaf's CEO, Kyle Detweiler, and the company's CFO, Hank Haag. 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 filings 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-Q for the quarter ended March 31, 2021, which was filed prior to this call, as well as other filings made by Cleverleafs with the SEC from time to time. These filings identify factors that could cause results to differ materially from those forward-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 will turn the call over to Kyle. Kyle?

Thank you, Cody, and good afternoon, everyone. During the first quarter, we made continued progress towards our long-term objective of becoming a leading low-cost provider of pharmaceutical-grade cannabis to medicinal and wellness markets worldwide. We saw strong year-over-year revenue growth despite difficulties resulting from COVID-19, and we continued to drive improvements across our operating cost structure and through adjusted EBITDA. On an operational level, we established additional partnerships with key operators around the world, further advancing our global growth strategy. I am proud of how we are positioning our business with an evolving regulatory landscape and challenging macroeconomic environment. We are pleased to have achieved numerous key milestones during the quarter across our international markets. In Portugal, we began construction efforts on our cultivation expansion, as well as our new post-harvest facility. While strong execution and project management has helped navigate challenging weather conditions, we continue to contend with COVID-19 restrictions, which most recently at the end of April, culminated in a local travel quarantine in the region around our cultivation facility, disrupting the flow of essential products, such as food and construction materials, as well as the usual work processes for our employees and laborers commuting to the construction site. Despite these obstacles, we became GACP certified across our operations in Portugal, allowing us to continue ramping our production, strengthening our value proposition to clients, while increasing quality standards as required in certain countries such as Israel. These developments helped us officially generate our first revenues out of Portugal in April, an important milestone for us which took two years to achieve. While Portugal revenue contributions remain small and the initial increased production costs place some pressure on our margins, we expect these operations to become a significant contributor to our business over time. We were also pleased to complete our first project financing in the region, raising €1 million at a modest cost of capital of Euribor plus 3%. In Colombia, we have received our annual cultivation quota from the Colombian Technical Quotas Group, further augmenting the sizable extraction quota we received from the group earlier in Q1. As a reminder, this extraction quota allows us to process up to approximately 59,000 kilograms of cannabis into dried flower derivatives, and this allocation represents approximately 50% of Columbia's total quota and approximately 18% of the world's legal medical cannabis production quota as issued in early 2021 by the International Narcotics Control Board. In addition to our extraction quotas, we also received our cultivation quotas in April for approximately 44,000 kilograms of psychoactive flower. With the added benefit of these achievements in our two primary production sites, I'd like to remind everyone that we have an established foundation for growth. We are cultivating out of a 1.8 million square feet of GACP and EU GMP certified greenhouse operation in Colombia, with our Colombian extraction operations also EU GMP certified. And we are also actively scaling our 110,000 square foot Portugal operation by another approximately 150,000 square feet, expanding our capacity and obtaining critical quality certificates within two of the world's most favorable growing climates, strengthens our competitive advantage, and puts the capital intensity of our business behind us. As regulatory tailwinds persist in our core markets, we believe we have a strong framework from which to continue supplying medical markets around the world and preparing for the further opening of new markets. I'll have more to say about our recent global partnerships later in the call, but in the meantime, we believe that these achievements constitute meaningful progress towards our strategic objectives. Before we discuss how we are currently establishing the groundwork for Cleverleaf's future over the next year, I'd like to turn the call over to our CFO, Hank Haag, to provide more details on our financial performance for the first quarter. Hank, over to you.