CLS Upholds Commitment to COVID-19 Safety, Hits Record Revenues for July 2020
LAS VEGAS, NV / ACCESSWIRE / August 11, 2020 / CLS Holdings USA, Inc. (OTCQB:CLSH) (CSE:CLSH), 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 July 2020 with net revenues of $1,381,842 USD and Gross Margin of 52%. Despite ongoing operational restrictions from COVID-19, the Company has increased its July 2020 net revenue by 44.8% compared to July 2019 and 138% over July 2018 to deliver its most successful month to date.
CLS Nevada July 2020 Financial and Operational Highlights
- Additional health and safety measures were prioritized at the CLS Nevada subsidiaries in July, including expansive employee testing, regular sanitization, and widely available PPE
- July's net revenue has increased by 44.8% over 2019 and 138% over 2018 - a near 240% increase in monthly net revenue since acquisition
- CLS' Nevada subsidiaries continue to develop best practices for delivering high quality products, services, and experiences in light of continued regulatory hurdles
As a part of its commitment to curtailing the spread of COVID-19 among its employees and customers, CLS initiated additional safety practices beyond the scope of state mandates in July. These measures included free testing for all Nevada subsidiary employees, professional disinfection of all facilities three times per week, and expanded internal protocols to ensure the safety of customers and staff. These protocols include floor guided social distancing, widely available PPE for all staff, and continuous availability of hand sanitizer. Maintaining the health and comfort of its customers and employees continues to be a critical mission for CLS, and adherence to this goal has bolstered customer confidence in CLS's Nevada dispensary, driving record revenues.
Reaching New Heights
Since their acquisition in July 2018, CLS' Nevada retail subsidiary, Oasis Cannabis, and its Nevada wholesale manufacturing division, City Trees, have collectively tripled their monthly net revenue from a total of $580,675 in July 2018 to $1,381,842 in July 2020. The number of daily transactions at Oasis in July 2020 increased by 21.6% over June 2020, accompanied by an average dollar amount per transaction increase of 10.6%, leading to the highest net revenue month in company history, despite a continuing 33% reduction in daily operating hours. The addition of expanded delivery and curbside pick-up services in March 2020 have continued to increase total transactions at Oasis to record numbers, and have increased the availability of City Trees' products market-wide.
Andrew Glashow President/COO stated "In the face of remarkable challenges, CLS' Nevada subsidiaries in Nevada have maintained cautious growth while continuing to prioritize the health and safety of their employees and customers. CLS Holdings will continue to follow best practices outlined by health officials and make compassionate business choices that are expected to grow revenue safely and sustainably. While we celebrate new revenue highs and our continued growth in the Nevada cannabis market, it is vital to our mission that our employees and customers are safe and comfortable, first and foremost - a goal that will provide a foundation for our decisions going forward".
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
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 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 following the pandemic, results of operations during the pandemic, 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.
View source version on accesswire.com:
Released August 11, 2020