Schultze Special Purpose Acquisition Corp. and Clever Leaves International Inc. Announce Effectiveness of Registration Statement for Proposed Business Combination

Rhea-AI Summary

On November 30, 2020, Schultze Special Purpose Acquisition Corp. (NASDAQ: SAMA, SAMAW, SAMAU) announced that the SEC has approved its registration statement for a business combination with Clever Leaves International Inc. This merger will create a new entity, Clever Leaves Holdings Inc. SAMA's stockholders will vote on the merger during a special meeting on December 17, 2020. If approved, the merger may close on December 18, 2020, pending customary conditions. The integration aims to leverage Clever Leaves' global cannabis operations across various countries.

Positive

• SEC approval of the registration statement enables progression toward the business combination.
• Strategic merger with Clever Leaves may enhance global cannabis market presence.
• Expected closing of the merger on December 18, 2020, subject to customary conditions.

Negative

• The completion of the business combination is contingent on stockholder approval and satisfaction of closing conditions.

RYE BROOK, N.Y., Nov. 30, 2020 (GLOBE NEWSWIRE) -- Schultze Special Purpose Acquisition Corp. (NASDAQ: SAMA, SAMAW, and SAMAU) (“SAMA”) and Clever Leaves International Inc. (“Clever Leaves”) announced today that the U.S. Securities and Exchange Commission (“SEC”) has declared effective the registration statement on Form S-4 (as amended to the date hereof, the "Registration Statement"). The Registration Statement includes a proxy statement/prospectus in connection with the special meeting of SAMA stockholders to consider the previously announced business combination (the "Business Combination") with Clever Leaves pursuant to which a newly formed holding company, Clever Leaves Holdings Inc. (“Holdco”), will acquire SAMA and Clever Leaves.

SAMA has mailed the definitive proxy statement/prospectus relating to the special meeting of SAMA’s stockholders, which will be held on Thursday, December 17, 2020 at 11:00 a.m. Eastern time.

The proxy statement/prospectus is being mailed to SAMA’s stockholders of record as of the close of business on November 16, 2020 (the "Record Date"). Should the Business Combination be approved by stockholders, SAMA and Clever Leaves anticipate closing the Business Combination on or about December 18, 2020, subject to satisfaction or waiver of customary closing conditions.

About Schultze Special Purpose Acquisition Corp.
Schultze Special Purpose Acquisition Corp. is a blank check company formed for the purpose of entering into a merger, stock exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities. SAMA’s sponsor is an affiliate of Schultze Asset Management, LP, an alternative investment management firm founded in 1998 that focuses on distressed, special situation and event-driven securities and has invested over $3.2 billion since inception with a notable track-record through its active investment strategy. SAMA itself is backed by an experienced team of operators and investors with a successful track-record of creating material value in public and private companies.

About Clever Leaves International Inc.
Clever Leaves is a multi-national cannabis company with a mission to operate in compliance with federal and state laws and with an emphasis on ecologically sustainable, large-scale cultivation and pharmaceutical-grade processing as the cornerstones of its global cannabis business. With operations and investments in the United States, Canada, Colombia, Germany and Portugal, Clever Leaves has created an effective distribution network and global footprint, with a foundation built upon capital efficiency and rapid growth. Clever Leaves aims to be one of the industry’s leading global cannabis companies recognized for its principles, people, and performance while fostering a healthier global community.

Additional Information and Where to Find It
The Registration Statement includes a prospectus with respect to Holdco’s securities to be issued in connection with the Business Combination and a proxy statement with respect to SAMA’s stockholder meeting at which SAMA’s stockholders will be asked to vote on the proposed Business Combination. SAMA, Clever Leaves and Holdco urge investors, stockholders and other interested persons to read the Registration Statement, including the proxy statement/prospectus, as well as other documents filed with the SEC, because these documents contain important information about the Business Combination. SAMA is mailing a definitive proxy statement and other relevant documents to its stockholders as of the Record Date. SAMA’s stockholders will also be able to obtain a copy of such documents, without charge, by directing a request to: Schultze Special Purpose Acquisition Corp, 800 Westchester Avenue, Suite 632, Rye Brook, New York 10573; e-mail: sdu@samco.net. These documents can also be obtained, without charge, at the SEC’s web site (http://www.sec.gov).

Participants in Solicitation

SAMA, Clever Leaves, Holdco and their respective directors, executive officers and other members of their management and employees, under SEC rules, may be deemed to be participants in the solicitation of proxies of SAMA stockholders in connection with the Business Combination. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies to SAMA’s stockholders in connection with the Business Combination is set forth in the definitive proxy statement/prospectus contained in the Registration Statement. Information concerning the interests of SAMA’s and Clever Leaves’ participants in the solicitation, which may, in some cases, be different than those of SAMA’s and Clever Leaves’ equity holders generally, is also set forth in the definitive proxy statement/prospectus contained in the Registration Statement.

Forward Looking Statements

This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts and may be identified by the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions). Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. Factors that may cause such differences include, without limitation, SAMA’s and Clever Leaves’ inability to complete the transactions contemplated by the Business Combination; matters discovered by the parties as they complete their respective due diligence investigation of the other; the inability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, the amount of cash available following any redemptions by SAMA stockholders; the ability to meet Nasdaq’s listing standards in connection with or following the consummation of the Business Combination; costs related to the Business Combination; expectations with respect to future operating and financial performance and growth, including when Clever Leaves or Holdco will become cash flow positive; the timing of the completion of the Business Combination; Clever Leaves’ ability to execute its business plans and strategy and to receive regulatory approvals; potential litigation involving the parties; global economic conditions; geopolitical events, natural disasters, acts of God and pandemics, including, but not limited to, the economic and operational disruptions and other effects of COVID-19; regulatory requirements and changes thereto; access to additional financing; and other risks and uncertainties indicated from time to time in filings with the SEC. Other factors include the possibility that the proposed transaction does not close, including due to the failure to receive required security holder approvals or the failure to satisfy other closing conditions. The foregoing list of factors is not exclusive. Additional information concerning certain of these and other risk factors is contained in SAMA’s most recent filings with the SEC and is contained in the Registration Statement, including the definitive proxy statement/prospectus. All subsequent written and oral forward-looking statements concerning SAMA, Clever Leaves or Holdco, the transactions described herein or other matters and attributable to SAMA, Clever Leaves, Holdco or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Each of SAMA, Clever Leaves and Holdco expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in their expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

Schultze Special Purpose Acquisition Corp.
George J. Schultze: schultze@samco.net
Gary M. Julien: gjulien@samco.net
(914) 701-5260

Investor Relations
Raphael Gross
ICR
raphael.gross@icrinc.com
(203) 682-8253

Media Relations
KCSA Strategic Communications
McKenna Miller
mmiller@kcsa.com
(347) 487-6197

FAQ

What is the purpose of the business combination between SAMA and Clever Leaves?

The business combination aims to create Clever Leaves Holdings Inc., enhancing operations in the global cannabis market.

When will SAMA stockholders vote on the business combination?

The vote will take place on December 17, 2020, at 11:00 a.m. Eastern time.

What is the expected closing date for the merger between SAMA and Clever Leaves?

The merger is expected to close on or about December 18, 2020, pending customary closing conditions.

What are the potential risks associated with the business combination of SAMA and Clever Leaves?

Potential risks include failure to receive stockholder approval and satisfaction of closing conditions, which could prevent the merger from closing.