LAS VEGAS, NV / ACCESSWIRE / March 15, 2022 / CLS Holdings USA, Inc. (OTCQB:CLSH) (CSE:CLSH), the ''Company'' or ''CLS'', a diversified cannabis company operating as Cannabis Life Sciences, today announced a strong start to the new year with the release of the financial and operational results for its Nevada wholly owned subsidiaries for January and February 2022. Despite decreasing overall retail numbers in the state of Nevada, BDS Analytics data for City Trees showed remarkable growth and numbers, as CLS continues to surpass expectations with its revenue and gross profit margins.
CLS Nevada January and February 2022 Financial and Operational Highlights
- BDS Analytics Data for City Trees Sales for January 2022
- City Trees Total Retail Sales for January 2022 were $1.05 million versus $340,000 for January 2021, an increase of 195.5%
- City Trees Total Units Sold for January 2022 were up 47.8% from the comparable month of the previous year
- During January 2022, City Trees Brand Share was 6.3% of the entire cannabis market in the state of Nevada
- City Trees ranked as the #2 brand in Total Sales and Total units sold across the entire concentrate category in the state of Nevada during January 2022
- City Trees continued to be the #1 Tincture brand in all Nevada during January 2022
- CLS' net revenue in February was $1.98 million, an increase of 32% YOY and by 72% from 2020
- At 55%, CLS continued to achieve its goal of a greater than 50% gross profit margin in February with Oasis attaining 53% and City Trees achieving 57% gross profit margin
- City Trees achieved net revenue of $812k in February an increase 122% YOY
- CLS will be holding its first ever quarterly investor call this April
- CLS' retail division, Oasis cannabis saw an increase of net revenue of 3.2% YOY and 32% over 2020 while the Nevada cannabis market was down by almost 10% in February 2022
The BDS Analytics data for January 2022, casted a bright spotlight on CLS' branded division, City Trees, which reached over a million dollars in retail sales, demonstrating a 195.5% increase YOY and a 205% increase over 2020. City Trees total units sold were up almost 50% YOY and the brand boasted a 6.2% Brand Share by units sold and 6.3% Brand Share by dollars sold within the entire cannabis market in Nevada. City Trees' overall performance continues to position the brand at #2 in the overall concentrate category in Nevada and as the #1 tincture brand in the state, according to BDS Analytics. It's important to note that all the growth and success has happened organically, from investing within and expanding the brand without any acquisitions.
CLS earned just under 2 million dollars in net revenue during February, 2022 which represented a 32% increase YOY and a 72% increase from 2020. The wholesale branded division at City Trees continued to show accelerated growth with net revenues during February, 2022 with an increase of 122% YOY and a 205% increase from 2020. The Company continued to achieve its goal of a greater than 50% gross profit margin during February, 2022, achieving 55% for the month of February. CLS' retail division, Oasis, attained a 53% gross profit margin during February, 2022, while the branded wholesale division at City Trees maintained a 57% gross profit margin.
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/
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
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.
Chairman and CEO
President and COO
SOURCE: CLS Holdings USA, Inc.