CLS Holdings USA, Inc. Manufacturing Subsidiary Announces New Toll Processing Division
LAS VEGAS, NV / ACCESSWIRE / January 26, 2021 / CLS Holdings USA, Inc. (OTCQB:CLSH)(CSE:CLSH), the ''Company'' or ''CLS'', a diversified cannabis company operating as Cannabis Life Sciences, today announced the development of a new division within its manufacturing arm, City Trees. The new division, Trichome Harvest Company, specializes in toll processing for regional and national cannabis brands licensed in the state of Nevada with a variety of transaction types and negotiable terms. The Company's new state-of-the-art extraction facility became operational in April 2020, and has contributed to the growing success of the City Trees brand. In light of the achievements of City Trees in extraction innovation and growing market penetration, which were driven by this investment, the Company is expanding the services of this facility to further elevate the concentrate category in the state.
Since its rebranding in September 2020, City Trees has continued to build its catalog of award-winning vapes, tinctures, and craft concentrates, and can now be found in approximately 80% of Nevada dispensaries. While the brand will continue to produce innovative products under its own umbrella, including a selection of 5 products scheduled for release in February, the Company has now opened its facility to cultivators seeking ethanol extraction, hydrocarbon extraction, and product formulation services. The Company began offering limited toll processing services in 2020 for a variety of well-known Nevada brands, but has now begun the process of formalizing its service offerings under the new moniker in response to the increasing demand for high quality concentrates. Trichome Harvest Company intends to offer buy-back transactions and split-yield transactions with both bulk and prepackaged options, and can customize terms to maximize the benefit for both the Company and its valued partners.
"We have a beautiful, clean, state-of-the-art facility here in Las Vegas, and we want to share it with trusted partners to raise the bar for concentrates and vape products in the state" said Company President and COO Andrew Glashow. "We hold ourselves to the highest standards and are always looking to innovate, and we encourage other cultivators and producers to take a look at our facility to see how they can do the same." The Company also recently received a Statement of No Deficiency from its latest state inspection of its cultivation facility in August 2020.
As of January 2021, the company had processed approximately 2,000 pounds of plant material and 18,000 grams of crude cannabis oil for third party brands, with an additional 4,000 pounds to be processed under existing agreements and anticipated partnerships. These agreements have also contributed a significant amount of plant material for the Company to extract and label under its own brand, including approximately 4,500 pounds that have already been processed, with an additional 6,500 pounds anticipated. With these agreements in place, the Company expects this division to achieve continued growth and lower operating costs in the coming months.
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. https://www.clsholdingsinc.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
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 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 January 26, 2021