CLS Holdings Announces March Financial Results and Momentous Sales Performance Amidst COVID-19 Business Restrictions
LAS VEGAS, NV / ACCESSWIRE / April 21, 2020 / CLS Holdings USA, Inc. (OTCQB:CLSH)(CSE:CLSH) ("CLS" or the ''Company''), a diversified cannabis company operating as Cannabis Life Sciences, announced today its March 2020 revenue of $1.063 compared to March 2019 revenue of $1.068 million. Gross margin for March 2020 was $500,000 compared to $392,000 in March of 2019, an increase of 27%.
"Our Oasis retail operations saw a 27% increase in customers served from 12,937 in March of 2019 to 16,435 in March of 2020, despite state-wide restrictions on business and tourism due to the outbreak of COVID-19. Our retail dispensary was closed following a March 20th state mandate, and thereafter all retail operations were suspended for 3 days while we successfully transitioned to a delivery-only platform that is now executing at a high level and fulfilling upwards of 95% of orders on a "same day" basis", said Andrew Glashow President/COO"..
Oasis has streamlined operations by developing a driver delivery model that is maximizing retail efficiency. Oasis is receiving an average of 350 orders per day and has seen average order size of approximately $80, an increase of 2 times our average in-store order in February of 2020. Retail operations are now operating 14 hours a day versus the pre-COVID-19 24 hours a day,
"CLS' March performance would not have been possible without our dedicated staff who have helped successfully pivot our business to accommodate for these unprecedented restrictions," said Jeff Binder, Chairman/CEO ."We recognize that it is a privilege to operate as an essential business during this crisis, and our team will continue our quest to remain the locals' choice by making active efforts to stimulate the local economy and provide outstanding medicine and service every day."
CLS' wholesale and branded products City Trees division is now producing all its products from its new state of the art manufacturing facility in North Las Vegas. This is an exciting development that allows City Trees to produce our high quality, safe, independently tested branded products cost effectively. Having control over manufacturing provides us with the opportunity to make products to order and develop new unique offerings. We look forward to sharing our first new internally developed products very soon.
The operational disruptions caused by the pandemic have created logistical issues for many of our City Trees customers. We have a high degree of respect for the decisions these operators have made in the interest of employee and customer safety. As a result, we have experienced a decline in City Trees' revenue but this slowdown has allowed us to create some exciting synergies with our Oasis retail operations. We look forward to the day when the COVID-19 restrictions are lifted, and we can show off our new products and environmentally friendly packaging to our wholesale customers.
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 dispensaries throughout the state of Nevada. https://citytrees.com
Photo: City Trees production lab. North Las Vegas, NV
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 businesses, 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 following the pandemic, and results of operations during the pandemic. In some cases, we have also attempted to estimate our present operations and results of operations. These statements are estimates, and even if presently accurate, such statements or results could change quickly as a result of the rapid changes we are experiencing during this pandemic, and such changes could be adverse and material. 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 processing activities, the businesses or our wholesale customers, and our 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 pandemic 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
SOURCE: CLS Holdings USA, Inc.
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Released April 21, 2020