CLS Holdings USA, Inc. Delivers Another Record Month in August, Unveils Refreshed Wholesale Manufacturing Division and New Projects on the Horizon
LAS VEGAS, NV / ACCESSWIRE / September 10, 2020 / CLS Holdings USA, Inc. (OTCQB:CLSH) (CSE:CLSH.CN), the ''Company'' or ''CLS'', a diversified cannabis company operating as Cannabis Life Sciences, today announced the financial and operational results for its Nevada wholly owned subsidiaries for the month of August 2020 with net revenues of $1.4M and Gross Margin of 50.41%. These results represent an increase of 20.76% in net revenue over August 2019, and an increase of 1.73% over the previous highest revenue month in July 2020. The Nevada wholesale manufacturing division of CLS Holdings, City Trees, also unveiled a newly refined brand identity in the first week of September. With renewed excitement around this division, CLS has its eye on continued innovation and collaborative product development.
CLS Nevada August 2020 Financial and Operational Highlights
- August 2020 net revenue increased by 20.76% over August 2019, and by 1.73% over July 2020, representing a new company record for the second consecutive month.
- CLS' Nevada wholesale manufacturing division finalized all materials for the relaunch of the City Trees brand in September.
Back-to-Back Record Revenue Months
For the second month in a row, CLS' Nevada subsidiaries have set a new company record, recording a gross margin of 50.41% and $1,405,800.71 in net revenue in August 2020 - a revenue increase of 1.73% over July 2020 and 20.76% over August 2019. Sustainable growth at retail subsidiary Oasis Cannabis and improved COVID-19 performance at wholesale manufacturing division, City Trees, have been driven by continued efforts to provide a clean, comfortable retail experience and to produce safe, consistent products. According to recently reported figures from BDS Analytics, a leading data provider for the cannabis industry, July 2020 cannabis sales in Nevada have reached a total of $82 million - a 37% increase over July 2019 - despite a substantial downturn in tourism traffic during the year. CLS' Nevada subsidiaries outpaced this market average in July 2020 with a year over year increase of 44.8%.
A New State of Mind for City Trees
In August 2020, CLS' Nevada wholesale manufacturing division, City Trees, completed the required materials for its September relaunch. This included all new sustainable packaging, a refined product catalog, and updated design criteria. New materials began widespread distribution on September 4, accompanied by the release of three premium limited edition products.
Alongside a robust, targeted digital advertising presence, City Trees unveiled a newly designed website featuring an integrated indirect e-commerce platform, allowing customers to purchase products from local Nevada retailers through the website sales portal. The new website also highlights the expansive sustainability initiatives for the brand, including the Buy 1 Plant 1 campaign, wherein all sales of 1:1 THC:CBD category products will include a donation in support of the Arbor Day Foundation.
Updated City Trees website, featuring indirect e-commerce functionality and all new product designs - September 2020
With a refined look and more curated product offerings, CLS anticipates a substantial increase in activity for this division. Further planned innovations on the horizon include a collaborative product development project with a premier California and Nevada-based cannabis cultivator, with an anticipated completion date in the fourth quarter of 2020. The completion of its new production facility opens the door for City Trees to expand its extraction capabilities and continue to offer safe, innovative products at an increased volume.
Redesigned City Trees product packaging and advertising collateral - September 2020
About CLS Holdings USA, Inc.
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. http://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
Photo: Oasis Cannabis Dispensary. Las Vegas, NV
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
Photo: City Trees production facility, Las Vegas, NV
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 future impact of the COVID-19 virus on our business, the future results of our initiatives to retain our employees and strengthen our relationships with our customers and community during the pandemic, the future effect of our initiatives to expand market share and achieve growth during and following the pandemic, future 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 speed with which the COVID-19 situation is developing and the uncertainty of its magnitude, outcome and duration, 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.
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Released September 10, 2020