CLS Holdings USA, Inc. Reports Profitable First Quarter with Latest 10Q Results
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LAS VEGAS, NV / ACCESSWIRE / October 12, 2021 / CLS Holdings USA, Inc. (OTCQB: CLSH) (CSE: CLSH), the ”, a quarter of fiscal 2022, ended August 31, 2021.
Main financial and operational achievements of the first quarter
- The Company achieved positive net income for the first time in its history, making it the most profitable quarter to date
- Net income for the quarter ended August 31, 2021 was $ 427,599, net loss for the quarter ended August 31, 2020 was ($ 1,145,036)
- Revenue growth was found to be significant with an increase of 45.5% compared to the figures for the first quarter of last year
- The company recorded an 11% reduction in selling and administrative expenses, from 63.6% of revenue in the first quarter of fiscal 21 to 52.6% in the first quarter of fiscal 22 .
- CLS was able to maintain the same gross margin of 52.7% for the quarter year-on-year, which allowed the Company to meet its target of exceeding 50%
- The Company saw its gross margin increase by 4.8% between the quarter ended in May 2021 and the quarter ended in August 2021.
- Oasis Cannabis, the retail division of CLS, has seen a continuous increase in transactions processed year-over-year for the months that make up the first quarter of fiscal 22
- City Trees, the company’s branded products division, had several successes this quarter:
- Recorded a continuous increase in monthly net sales year over year from June to August 2021
- Continued to maintain its position as the number one dye brand in the State of Nevada
- Reached third for most units sold in Nevada for the overall concentrates category, including dab concentrates and vapes for the quarter. This is an increase of 291.65% compared to the quarter of the previous year
- Became the top-selling brand in Nevada in units sold in the dabable concentrate category for August 2021
- Both divisions reported an increase in year-over-year net profit for the quarter, with City Trees achieving an increase of 152.41% and Oasis a growth of 21.39%.
“We are more than proud to have achieved profitability for the first time in our company’s history,” said Andrew Glashow, President and Chief Operating Officer, “which is a feat we would not have. could achieve without the hard work and dedication of our team members. announcing our new joint ventures and other innovative launches on the horizon, we anticipate continued growth and success in the future. “
Strength in numbers
City Trees and Oasis both achieved a year-over-year increase in net profit for the quarter, with an increase of 152.41% and 21.39%, respectively.
The storefront of the Las Vegas retail store, Oasis Cannabis Dispensary, continued to post excellent results through the first quarter of fiscal 2022. Oasis reported a 21.39% increase in net income year-on-year and for the three months, Oasis saw growth in transactions processed year-over-year. year. These good figures bear witness to the company’s ability to listen to the market, meet the expectations of the community and meet its needs. Over the years, the dispensary has gained a reputation for providing quality products at an affordable price, a strategy that has continued to serve the company well with its steady growth.
City Trees, the company’s branding division, has maintained significant year-over-month sales increases every month for the past year. Overall, the brand recorded a 152.41% increase in net profit compared to the previous year quarter. The brand has also achieved high ranks in concentrates and tinctures in the Nevada market. Of the 58 brands listed in the cannabis concentrates category by BDS Analytics, City Trees was ranked 3rd for most units sold for the quarter, with over 90,000 units sold. In August, City Trees’ dab concentrates were # 1 in units sold in the category.
With the recently announced joint ventures, the Company intends to continue innovation in the cannabis categories in which it currently operates and expects to add new product categories to its portfolio in the coming quarters. This, along with the Company’s continued efforts in its retail and wholesale divisions, are well positioned to continue this positive momentum.
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 method of extracting various cannabinoids from the marijuana plant and converting them into products of a higher level of quality and consistency. The Company’s business model includes licensing operations, processing operations, processing facilities, product sales, branding and advisory services. https://www.clsholdingsinc.com/
Oasis Cannabis has operated a cannabis dispensary in the Las Vegas market since the dispensaries opened in Nevada in 2015 and has been recognized as one of the top marijuana retailers in the state. Its location within walking distance of the Las Vegas Strip and downtown Las Vegas, combined with its resident delivery service, allows it to efficiently serve locals and tourists to the Las Vegas area. In February 2019, it was named “Best Dispensary for Pot Pros” by Desert Companion magazine. In August 2017, the company began wholesale 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 at many dispensaries across 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 such term is defined in the Private Securities Litigation Reform Act of 1995 (collectively, the forward-looking statements’ ‘). These statements relate to, among other things, our estimates of future revenues, gross margin, the number of transactions in our dispensary and average order size, the time of commencement of manufacturing operations for our pre-roll joint venture, the number of products. expected to produce each month and how long it will take the pre-roll joint venture to achieve expected monthly sales, customer acceptance of our joint venture products, whether other companies will enter into licensing agreements for our joint venture pre-roll produce pre-rolls for them, whether our business in New Mexico and other licensing opportunities will lead to expansion into other states, and other factors and issues typically related to and experienced by a phased business growth. These statements will also be impacted by 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 the community during the pandemic, the effect of our initiatives to increase our market share and achieve growth during and after the pandemic, operating results 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 has already had, a negative impact on our business, operations and financial results, including disrupting our growing and processing activities, supply chains and our sales channels; and our retail distribution operations. as well as a deterioration in 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 significant. In some cases, you can identify forward-looking statements by words such as “”. ” ‘plans,’ ” ‘goals,’ ” ‘projects,’ ” ‘plans,’ ” ‘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 risks, uncertainties and other known and unknown factors that may cause our actual results, levels of activity or performance to differ materially from the results, levels. activity or future performance expressed. or implied by these forward-looking statements. We cannot guarantee future results, activity levels or performance. You should not place undue reliance on these forward-looking statements, which speak only as of the date on which they were made. These cautions should be considered in conjunction 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 forward-looking statements so that such statements reflect actual results, subsequent events or circumstances or to reflect the occurrence of unforeseen events. See the documents filed by CLS Holdings USA with the SEC and on its SEDAR profile at www.sedar.com for further details.
President and CEO
President and Chief Operating Officer
THE SOURCE: CLS Holdings USA, Inc.
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