CLS Holdings USA Inc., a diversified cannabis company operating as Cannabis Life Sciences, revealed that its Nevada wholly owned subsidiaries clocked up net revenues of $1.7 million and a gross margin of 50% for the month of September 2021.
The Las Vegas, Nevada-based cannabis company said it achieved its goal of 50% gross margin, while continuing to see "significant growth" in the branded wholesale division at City Trees.
“Year-over-year, City Trees saw an increase in net revenue of 22% and 66% over 2019,” said the company.
READ: CLS Holdings USA in joint venture with Ranson Shepherd to manufacture pre-rolls
In the meantime, the group’s retail division, Oasis Cannabis continued to best its goal of a $50 average order size with orders averaging $54 in September.
The company highlighted that City Trees continued to maintain its position as the number one selling tincture brand in the Silver State.
“BDS Analytics reported August numbers showing City Trees was the number one selling dabbable concentrates by units sold in the state of Nevada,” said the company.
Significantly, CLS Holdings USA (CSE:CLSH, OTCQB:CLSH) announced a major joint venture agreement with Ranson Shepherd in September to create its own pre-rolls, as well as manufacture pre-rolls for other brands under exclusive licensing agreements. The collaborative venture is expected to allow for the rapid production of “high quality, low-cost pre-rolls” and anticipates producing 200,000 pre-rolls per month after the initial start-up period.
"Our branded products division continued to outperform the market and grow,'' CLS Holdings President and COO Andrew Glashow said in a statement. "This wouldn't have been possible without a full team effort from the product creation and innovation coming from our lab to the sales and marketing teams joint efforts in getting our products into the people's hands. "
CLS Holdings USA 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 a nod to 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 firm’s business model includes licensing operations, processing operations, processing facilities, sale of products, brand creation and consulting services.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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