Last week, Investor’s Business Daily published an article discussing a recent acquisition by cultivation supplier GrowGeneration (NASDAQ:GRWG).
The writer notes that GrowGeneration (NASDAQ:GRWG) recently completed its sixth acquisition this year, this time of California-based company 55 Hydroponics, bringing the company’s footprint to 51 US locations. Meanwhile, the author notes, cannabis stocks including Tilray (NASDAQ:TLRY), Canopy Growth (NASDAQ:CGC), Cronos Group (NASDAQ:CRON), and Aurora Cannabis (NYSE:ACB) had all declined.
With companies like GrowGen (NASDAQ:GRWG) seeing growth through innovative acquisition, investors may look toward companies like CLS Holdings USA, Inc. (OTCQB:CLSH;CSE:CLSH). CLS Holdings USA, Inc. (OTCQB: CLSH; CSE:CLSH) is a vertically integrated cannabis producer and retailer offering a wide variety of cannabis products through two subsidiaries: Oasis Cannabis and City Trees. The Company holds a U.S. Patent for a proprietary extraction and conversion methodology, which delivers 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.
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. Accolades for the dispensary include “Best Dispensary for Pot Pros” by Desert Companion Magazine, and the shop has been listed on Thrillist’s “Best Las Vegas Dispensaries” lists, including their “Best Weed Delivery in Las Vegas” during the COVID-19 pandemic. In August 2017, CLS Holdings USA, Inc. (OTCQB:CLSH; CSE:CLSH) commenced wholesale offerings of cannabis in Nevada with the launch of its City Trees brand of cannabis concentrates and cannabis-infused products.
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 award-winning products are available in numerous dispensaries throughout the state of Nevada. City Trees’ current offerings include ethanol extracted distillate-based products including disposable vape pens, cartridges, distillate applicators, and tinctures, along with hydrocarbon extracted craft concentrates. The brand has received numerous awards for its offerings, including two High Times Awards for its Calm 1:1 cartridge and Blue Agave Tincture, and a Las Vegas Cannabis Award for Best Syringe for Jack Herer. City Trees also offers toll processing through its extraction facility, working with brands across the state of Nevada to produce concentrates for numerous partners. In September 2020, City Trees unveiled its rebranded offerings, featuring new design criteria and a reinforcement of its commitment to sustainability. An integral part of its brand identity, City Trees transitioned to recyclable packaging in tandem with its redesign, and has made a significant partnership with the Arbor Day Foundation, wherein each sale of a 1:1 product is accompanied by a donation that will plant a tree. In 2020, this partnership resulted in 115,000 trees planted in the Chattahoochee-Oconee National Forest in Georgia through the combined efforts of 19 companies, including City Trees.
Recently, CLS Holdings USA, Inc. (OTCQB:CLSH; CSE:CLSH) announced its second quarter results for fiscal 2021, which included a 61% increase in revenue over the second fiscal quarter of 2020. This was driven by a 58% increase in year over year quarterly revenue at City Trees, and continued growth in traffic and average transaction totals at Oasis Cannabis.
Following this quarterly update, CLS Holdings USA, Inc. (OTCQB: CLSH; CSE:CLSH) released its monthly results for December 2020. These results showed a 50.2% increase in monthly revenue compared to December 2019, including a 174% increase in year over year monthly revenue from City Trees. With a variety of new products released in February 2021, this division is further solidifying its position as an industry leader in extraction in Nevada.
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