Seems like it could be a big deal
LAS VEGAS, NV, Mar 13, 2019 (Canada NewsWire via COMTEX) -- 86,000 square foot planned cultivation facility expected to produce 28000 pounds of flower annually
CLS Holdings USA, Inc. (otcqb:CLSH) "CLS," a diversified cannabis company operating as Cannabis Life Sciences and an integrated cannabis producer and retailer in Nevada through its Oasis Cannabis subsidiaries, today announced that it has entered into a definitive agreement to acquire an 80% ownership interest in CannAssist, LLC. This agreement, along with the previously announced option agreement to acquire In Good Health, marks a continuation towards CLS's goal to become a significant entity in the rapidly growing Massachusetts market.
CannAssist has entered into a contract with the City of Leicester and has applied for a state cultivation grow license. The planned Leicester 86,000 square foot facility is expected to produce its first harvest in Q1 of 2020. This facility is expected to produce 28000 pounds of flower along with 240,000 grams of extract. Once fully operational, total revenues from the facility are anticipated to exceed $100 million. CLS anticipates generating substantial positive cash flow from the grow facility.
Massachusetts has a population of 6.9 million people as compared to 5.6 million people in Colorado. Massachusetts is also centrally located to the dense population of New England with a less than 100-mile drive from Rhode Island, Connecticut, New York, New Hampshire and Vermont. The city of Denver currently has approximately 364 dispensaries compared with the entire State of Massachusetts, which currently has less than 50.
Jeff Binder, Chief Executive Officer of CLS Holdings USA, commented, "We are extremely excited to enter into this agreement. The market dynamics in Massachusetts are compelling for large scale cultivation. The current cultivation in Mass is approximately 800k square feet, while demand is expected to exceed 8,000,000 square feet. This opportunity fits into our stated objective of entering markets that are on the cusp of implementing a robust adult use market".
