- CLS Holdings USA, (CLSH) has announced the financial and operational results for its Nevada wholly-owned subsidiaries for the month of May 2021
- Net revenues totalled $1.9M with a gross margin of 53.6 per cent, a 87.7 per cent year-over-year increase in revenue
- The retail subsidiary, Oasis Cannabis, achieved a 59.41 per cent increase in monthly net revenue year-over-year
- Branded wholesale division, City Trees, recorded a 231.6 per cent increase in year-over-year net revenue
- Combined revenue for both divisions increased by 87 per cent over May 2020
- CLS Holdings USA is a diversified cannabis company
- CLS Holdings USA, Inc. (CLSH) opened trading at C$0.25 per share
CLS Holdings USA, (CLSH) has announced financial and operational results for its Nevada wholly-owned subsidiaries for the month of May 2021.
Net revenues totalled $1.9M with a gross margin of 53.6 per cent.
These results represent a 87.7 per cent year-over-year increase in revenue and 8.7 per cent increase in gross margin.
The company also began production of City Trees products in New Mexico through its partnership with Herbal Edibles.
CLS Nevada May 2021 financial and operational highlights
- The retail subsidiary, Oasis Cannabis, achieved a 59.41 per cent increase in monthly net revenue year-over-year, alongside a 59.9 per cent increase in the number of transactions processed. Gross margin for the dispensary was 50.4 per cent.
- Branded wholesale division, City Trees, recorded a 231.6 per cent increase in year-over-year net revenue with a gross margin of 61.5 per cent for May 2021.
- Combined revenue for both divisions increased by 87 per cent over May 2020, and by 91.8 per cent over May 2019.
- Production of the company’s best-selling tincture products began in New Mexico through its collaborative partnership with Albuquerque-based Herbal Edibles Inc.
- On May 11, 2021, the company presented at the Canaccord Genuity 2021 Virtual Cannabis conference.
- On May 17, 2021, CLS Holdings announced its availability for trading on the Canadian investment management platform, WealthSimple.
Year-over-year revenue increases for May 2021 at Oasis Cannabis Dispensary were driven largely by a substantial increase in order volume. The dispensary processed 22,576 transactions in the month of May 2021 – a 59.9 per cent increase over May 2020.
As operating restrictions due to COVID-19 were steadily loosened throughout the month, the dispensary has been able to expand in-store capacity while continuing to heavily promote delivery, curbside, and in-store pickup services. Average tickets at the dispensary also rose by 1 per cent in May 2021, year-over-year, and by 39.3 per cent over May 2019.
Oasis expects to see continued growth through the summer in tandem with a drastic increase in tourism to Las Vegas and even more operating restrictions lifted in June 2021.
“We did a tremendous job of establishing ourselves with the local community through 2020, and now that Las Vegas is expecting to see record tourism growth, our ceiling just keeps getting higher,” noted Company President and COO Andrew Glashow.
“We’ve seen what City Trees and Oasis can do when faced with immense challenges – now that we’re becoming less restricted in our operations, we’ll find out what we can truly accomplish through the remainder of 2021.”
At CLS Holdings’ production division, City Trees, monthly revenue for May 2021 increased by 231 per cent year-over-year, and by 80.6 per cent over May 2019. Gross margin for this division was 61.5 per cent.
In May 2021, the company also announced City Trees’ expansion into New Mexico’s medical cannabis market with its award-winning agave-based tinctures, which currently hold the #1 position in the tincture category in Nevada.
Production of these products in New Mexico began with a partner company, Herbal Edibles Inc., in May 2021. The brand anticipates continued growth in the coming months, with multiple new product releases scheduled for the first fiscal quarter of 2021 and new licensing agreements expected to materialize later this year.
CLS Holdings USA 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 Holdings USA, Inc. (CLSH) opened trading at C$0.25 per share.