CLS Holdings,
(OTCQB: CLSH) New Joint Venture $19 million Sales 61%
Growth
Miami, FL--(September 28, 2021) –
EmergingGrowth.com, a leading independent small cap media portal
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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:
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CLS and Mr. Shepherd will lend
their well-respected reputations to a new line of in-demand
products
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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
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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/
Twitter: @CLSHoldingsUSA
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
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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.
Contact Information:
Corporate:
Chairman and CEO
Jeff Binder
President and COO
Andrew Glashow
888-438-9132
Investor Relations:
investors@clsholdingsinc.com
Source: CLS Holdings USA, Inc.
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