Clover Leaf Capital Corp. has recently released its annual report, revealing its focus on effecting mergers, stock exchanges, and similar business combinations with companies operating in the cannabis industry. The company was incorporated in 2021 and is based in Miami, Florida.
Clover Leaf Capital Corp. disclosed that it had a net loss of $849,368 for the year ended December 31, 2023, primarily attributed to formation and operating costs of $1,586,541 and provision for income taxes of $196,591. The company stated that it will not be generating any operating revenues until the completion of its initial business combination.
Furthermore, the report detailed the company's liquidity, capital resources, and going concern. As of December 31, 2023, Clover Leaf Capital Corp. had cash of $162,933 and a working capital deficit of $4,493,502. The company indicated that its liquidity needs had been satisfied through a payment from its Sponsor and loans under unsecured promissory notes from the Sponsor.
The report also discussed recent developments, including the 2024 Special Meeting and 2024 Extension, where the stockholders approved an amendment to the company's Amended and Restated Charter to extend the Combination Period. Additionally, it highlighted the company's non-compliance with Nasdaq requirements, potential delisting, and an indemnification agreement with Kustom Entertainment and Digital Ally.
Moreover, the report mentioned the Kustom Entertainment Business Combination and the extensions of Clover Leaf Capital Corp.'s Combination Period. It also outlined the Founder Share Conversion, where the Sponsor received an aggregate of 3,457,806 shares of Class A Common Stock.
Clover Leaf Capital Corp.'s 10-K report provides a comprehensive insight into its financial condition, operations, and recent developments, shedding light on the company's challenges and strategic initiatives. Today the company's shares have moved 0.0% to a price of $12.14. Check out the company's full 10-K submission here.
