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LAS VEGAS, NV, Aug. 29, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- CLS Holdings USA, Inc. (OTCQB: CLSH, CSE: CLSH.CN) (“CLS” or the ''Company''), a diversified cannabis company operating as Cannabis Life Sciences, is pleased to report its consolidated financial results for the fourth quarter and fiscal year ended May 31, 2019.
? Completed the acquisition of Oasis Cannabis (“Oasis”) in Las Vegas, Nevada, a fully integrated cannabis operation.
? Consolidated fourth quarter and annual revenue of $2.9 million and $8.5 million, respectively.
? Acquisition of Massachusetts dispensary, In Good Health, anticipated to close in Q1 of calendar 2020.
? Launch of the Company's proprietary extraction and conversion processing facility expected in Q1 of calendar 2020.
Chairman Note
“Since the acquisition of our Oasis Cannabis dispensary in June 2018, we have been incredibly focused on improving its operations, which efforts we believe are starting to pay off,” commented Mr. Jeff Binder, Chairman and CEO. “For fiscal 2019, we achieved record annual revenue of $8.5 million, more than one third of which stemmed from the fourth quarter. In addition to the acquisition of Oasis, 2019 was full of successes, including Oasis’ grand reopening, locking up the planned acquisition of In Good Health, and the expansion of City Trees, our branded products and bulk flower division. Significantly, we were awarded a non-provisional, US utility patent for our leading-edge cannabidiol extraction and conversion process. We are excited about the potential competitive advantage and additional revenue streams that this technology is expected to represent.”
Financial Highlights
? Q4 2019 consolidated revenue of $2.9 million, an increase of $0.6 million or 23.5% over Q3 2019.
? Fiscal year 2019 consolidated revenue of $8.5 million, including $5.5 million from Oasis and $3.0 million from City Trees.
? As of May 31, 2019, total assets were $46.5 million, including cash and cash equivalents of $10.5 million. Total debt was $18.5 million.
Operational Highlights
? In June 2018, CLS Holdings completed the acquisition of Oasis, a fully integrated cannabis operation located in Las Vegas, Nevada. In April 2019, the Company celebrated Oasis’ grand reopening following a complete redesign of the dispensary resulting in a modern facility which is more inviting and vibrant and offers a superior customer experience. Since reopening, Oasis has reported record revenue, and revenue per square foot now exceeds $420. As a result of Oasis’ success, the Company intends to prototype the Oasis dispensary as its model and benchmark for future dispensary renovations and openings.
? City Trees, the Company’s branded products and bulk flower division, experienced significant growth across the board. For fiscal year 2019, City Trees reported record annual revenue of $3.0 million. City Trees is available in more than 70% of dispensaries throughout Nevada, which penetration is expected to increase as the Company continues to augment its innovative product offerings.
? In January 2019, the Company entered into an option agreement to acquire In Good Health. In Good Health, a licensed medical dispensary located in Brockton, Massachusetts, has been operational since September 2015 and is the second of 38 licensed dispensaries in Massachusetts, a market which legalized recreational retail sales on November 20, 2018. Under the terms of the agreement, the Company advanced $5.0 million to In Good Health and has been working closely with its CEO, David Noble, to implement its business plan in anticipation of closing. In June 2019, In Good Health entered into a Host Community Agreement with the Town of Sandwich for a second dispensary in Massachusetts. Management expects to complete this acquisition in January 2020, subject to receipt of financing.
