Miami, FL–(September 28, 2021) – EmergingGrowth.com, a leading independent small cap media portal with an extensive history of providing unparalleled content for the Emerging Growth markets and companies, reports on CLS Holdings, Inc. (OTCQB: CLSH)
CLS Holdings, Inc. (OTCQB: CLSH) just announced a 50/50 joint venture with RANSON SHEPHERD to manufacture pre-rolls, a category that represented approximately 11% of overall cannabis sales in Nevada in 2020.
This announcement comes on the heels of the Company’s most successful fiscal year, during which the Company achieved multiple record-setting months at both the retail and wholesale subsidiary level.
CLS Holdings, Inc. (OTCQB: CLSH) Ranson Shepherd Joint Venture by the numbers:
- CLS and Mr. Shepherd will lend their well-respected reputations to a new line of in-demand products
- The joint venture anticipates producing 200,000+ pre-rolls per month after a start-up period
- The current average wholesale price per pre-roll in Nevada is $3.00 + per unit.
- The joint venture will utilize the Company’s existing 22,500 sq ft manufacturing facility creating economies of scale
- The joint venture plans to create Its own pre-rolls as well as manufacture pre-rolls for other brands under exclusive licensing agreements
- The joint venture is expected to provide a structural cost advantage and become one of the lowest cost providers based on raw material procurement
- The joint venture anticipates achieving gross margins in-line with CLS’ standalone gross margins and to become accretive to CLS
- The joint venture believes it will create additional jobs and benefits to the community
This collaborative venture is expected to allow for the rapid production of high quality, low-cost pre-rolls. The venture, after an initial startup period, anticipates producing 200,000 pre-rolls per month. According to recently published data the average wholesale price for pre-rolls in Nevada exceeds $3.00 per unit. The Company plans to manufacture .5/.8/1.0 gram infused pre-rolls. The Company anticipates beginning production of the joint venture’s pre rolls in the 1st quarter of 2022.
The joint venture will manufacture and warehouse the joint venture’s pre-rolls utilizing the Company’s existing 22,500 sq ft manufacturing facility creating economies of scale with no additional cost. The joint venture expects to create its own pre-rolls, as well as manufacture pre-rolls for other brands under exclusive licensing agreements. This joint venture is also expected to create additional jobs and benefits to the community.
CLS Holdings, Inc. (OTCQB: CLSH) also recently announced the financial and operational results for its Nevada wholly owned subsidiaries for the month of August 2021 with net revenues of $1.8M and a gross margin of 51.9%.
These results represent a 24.8% year-over-year increase in monthly revenue, and a 50.7% increase in revenue when compared to August 2019. The company’s recent press release stated “Overall, August proved to be a great month as the retail side of the business, Oasis Cannabis was open for only 29 out of the month’s 31 days.”
CLS Holdings, Inc. (OTCQB: CLSH) by the numbers:
- August 2021 net revenue increased by 24.8% year-over-year, and by 50.7% over August 2019. The Company met its gross margin goals, achieving 51.9% for the month, compared to 50.6% during August 2020.
- The number of transactions processed at Oasis Cannabis increased 4.95% year-over-year increase with an average order value of $55.34 during August 2021.
- The Company’s branded division, City Trees, continued to gain market share and achieved a 90.9% increase in year-over-year revenue.
- The Company continued to add jobs and benefits to the market, hiring a number of employees in August.
- Oasis Cannabis was open for only 29 of the 31 days in August. The closure was a means to reward the staff with a staff appreciation day and workshops for career advancement.
CLS Holdings, Inc. (OTCQB: CLSH) also recently released its Record Fiscal Year End 2021 Results
Financial Summary for Fiscal Fourth Quarter 2021 vs. Fiscal Fourth Quarter 2020
- Total revenue for the fourth fiscal quarter of 2021 increased by 107.9% over the fourth fiscal quarter of 2020.
- Gross margin for the fourth fiscal quarter of 2021 was 46.3% a 1.3% increase over the fourth fiscal quarter of 2020.
Key Fiscal Year End 2021 Financial Accomplishments and Operational Highlights
- Total revenues for fiscal year 2021 were $19,292,087, an increase of 61.9% over fiscal year 2020.
- Gross margin for fiscal years 2021 and 2020 were 50%.
- Adjusted EBITDA totaled ($123,617) compared to ($1,732,557) in the previous fiscal year.
- Net loss was $15,890,514 for fiscal year 2021 compared to $30,657,973 for fiscal year 2020.
- Oasis Cannabis processed 11.9% more transactions in fiscal year 2021 compared to fiscal year 2020. The average transaction total was 32.6% greater than in fiscal year 2020.
- City Trees launched its rebranded line of extraction products with new packaging and design criteria, contributing to a significant increase in brand awareness and market share.
- The Company’s City Trees award-winning tinctures and other products were first manufactured outside of Nevada in May 2021, pursuant to the Company’s New Mexico partnership.
CLS Holdings achieved multiple records in fiscal 2021, including its highest revenue month, quarter, and fiscal year. Revenue increased by 61.9% year-over-year, with total revenue of $19,292,087 for the fiscal year. This figure also represents a 128.1% increase over revenue in fiscal year 2019. The fourth quarter of fiscal 2021 also represented the highest revenue quarter for the Company, with revenues of $6,264,960 and a 46.3% gross profit margin. This quarterly revenue represents a 108% increase from the fourth quarter of fiscal year 2020. The highest single day of revenue by retail footprint, Oasis Cannabis, was also achieved in fiscal year 2021, with a single day total of $96,791 on April 20, 2021.
Company President and COO, Andrew Glashow, noted that “Our fiscal year started in quarantine, and ended with the explosive return of tourism to Las Vegas. Our Nevada team didn’t miss a beat, and consistently reached new heights month after month, adapting every step of the way. Oasis and City Trees established themselves as Las Vegas mainstays in this last year, and we’re well positioned to continue expansion in Nevada and beyond.”
“We’ve shown that we can rise to any occasion,” remarked Chairman and CEO, Jeffrey Binder. “We’re entering fiscal year 2022 with a clear path to growth and the determination to take on any challenge put in front of us. We have set some lofty goals for this fiscal year and I’m confident with the team in place and the seeds we planted this past fiscal year we will achieve them.”
Branded product division, City Trees, underwent an extensive rebranding effort in September 2020, unveiling new packaging, brand material, and a revamped website including an indirect online ordering system. Since this endeavor, and the completion of the Company’s state-of-the-art extraction and conversion facility, the brand has seen significant growth of wholesale orders for its vape, concentrate, and tincture products. The brand also made its debut in New Mexico in May 2021, marking the first release of a CLS brand outside the state of Nevada. The continued improvement in revenue, margin, and market growth for CLS business entities is a testament to the success of the Company’s strategic path toward overall profitability.
CLS Holdings USA, Inc. (CLSH) is a diversified cannabis company that acts as an integrated cannabis producer and retailer through its Oasis Cannabis subsidiaries in Nevada and plans to expand to other states. CLS stands for “Cannabis Life Sciences,” in recognition of the Company’s patented proprietary method of extracting various cannabinoids from the marijuana plant and converting them into products with a higher level of quality and consistency. The Company’s business model includes licensing operations, processing operations, processing facilities, sale of products, brand creation and consulting services. https://www.clsholdingsinc.com/
Oasis Cannabis has operated a cannabis dispensary in the Las Vegas market since dispensaries first opened in Nevada in 2015 and has been recognized as one of the top marijuana retailers in the state. Its location within walking distance to the Las Vegas Strip and Downtown Las Vegas in combination with its delivery service to residents allows it to efficiently serve both locals and tourists in the Las Vegas area. In February 2019, it was named “Best Dispensary for Pot Pros” by Desert Companion Magazine. In August 2017, the company commenced wholesale offerings of cannabis in Nevada with the launch of its City Trees brand of cannabis concentrates and cannabis-infused products. http://oasiscannabis.com
Founded in 2017, City Trees is a Nevada-based cannabis cultivation, production and distribution company. Offering a wide variety of products with consistent results, City Trees products are available in numerous dispensaries throughout the state of Nevada. https://citytrees.com
Founded in 2009, Emerging Growth.com quickly became a leading independent small cap media portal. Over the years, it has developed an extensive history of providing unparalleled content, in identifying emerging growth companies and markets that can be overlooked by the investment community.
The next step in its evolution is the Emerging Growth Conference.
About the Emerging Growth Conference
The Emerging Growth conference is an effective way for public companies to present and communicate their new products, services, and other major announcements to the investment community from the convenience of their office, in an effective and time efficient manner.
The audience includes potentially tens of thousands of Individual and Institutional investors, as well as Investment advisors and analysts.
All Conferences are first announced on Twitter – Follow us on Twitter
All Conference replays emerge on our YouTube Channel – Subscribe to our YouTube Channel
If you believe your company, product or service is at the cusp of going mainstream, or you have an idea for an “Emerging Growth” company that might fit our model, contact us here.
Forward Looking Statements
This press release contains certain ”forward-looking information” within the meaning of applicable Canadian securities legislation and ”forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 (collectively, the ”forward-looking statements”). These statements relate to, among other things, the impact of the COVID-19 virus on our business, the results of our initiatives to retain our employees and strengthen our relationships with our customers and community during the pandemic, the effect of our initiatives to expand market share and achieve growth during and following the pandemic, results of operations and financial performance, anticipated future events, and the effectiveness of our business practices during the pandemic. The continued spread of COVID-19 could have, and in some cases already has had, an adverse impact on our business, operations and financial results, including through disruptions in our cultivation and processing activities, supply chains and sales channels, and retail dispensary operations as well as a deterioration of general economic conditions including a possible national or global recession. Due to the uncertainties associated with the continued spread of COVID-19 and the timing of vaccinations, it is not possible to estimate its impact on our business, operations or financial results; however, the impact could be material. In some cases, you can identify forward looking statements by terminology such as ”may,” ”might,” ”will,” ”should,” ”intends,” ”expects,” ”plans,” ”goals,” ”projects,” ”anticipates,” ”believes,” ”estimates,” ”predicts,” ”potential,” or ”continue” or the negative of these terms or other comparable terminology. These forward-looking statements are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. We cannot guarantee future results, levels of activity or performance. You should not place undue reliance on these forward-looking statements, which speak only as of the date that they were made. These cautionary statements should be considered together with any written or oral forward-looking statements that we may issue in the future. Except as required by applicable law, we do not intend to update any of the forward-looking statements to conform these statements to reflect actual results, later events or circumstances or to reflect the occurrence of unanticipated events. See CLS Holdings USA filings with the SEC and on its SEDAR profile at www.sedar.com for additional details.
Chairman and CEO
President and COO
Source: CLS Holdings USA, Inc.
Company: EmergingGrowth.com – http://www.EmergingGrowth.com
Contact Email: info@EmergingGrowth.com