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The Markets
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Cannabis

CLS Holdings USA announces record-breaking gross profit margin for November

"With our innovation lab pumping out what we believe to be the best quality product in the state of Nevada, a growing number of consumers continuing to purchase City Trees and show up at our OASIS dispensary we are poised for continued grow

CLS Holdings USA, Inc said its wholly-owned subsidiaries in Nevada generated net revenue of $1.8 million and a record gross margin of 56% during November.

The Las Vegas, Nevada-based cannabis company said this represented a significant monthly increase in gross margin of 20% year-over-year and 66% over 2019, as well as the largest gross margin the company has ever achieved.

The wholesale branded division at City Trees remained hot with monthly net revenue growth of 91% year-over-year and 132% over 2019.

READ: CLS Holdings USA taps cannabis veteran Dani Baranowski to help grow its City Trees product division

"It's been an exciting 2021," president and chief operating officer Andrew Glashow said in a statement.

"We are all systems go at this point. With our innovation lab pumping out what we believe to be the best quality product in the state of Nevada, a growing number of consumers continuing to purchase City Trees and show up at our OASIS dispensary we are poised for continued growth in ’22,” he added.

CLS said its retail division, Oasis Cannabis, continued to exceed its goal of a greater than $50 average order size with orders averaging $54 in November.

City Trees continued to outperform the market and achieved a 91% increase in year-over-year revenue and a 132% increase from 2019.

City Trees also continued to maintain its position as the number one selling tincture brand in the state of Nevada, the company added.

The company noted that numbers from market intelligence firm BDS Analytics reflected that City Trees was the number one brand for the entire concentrate category in units sold in the state of Nevada during October, selling over 46,000 units.

As of January 2022, CLS said it will transition from monthly to quarterly reporting and will hold investor quarterly calls.

CLS, or Cannabis Life Sciences, 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.

Contact the author at stephen.gunnion@proactiveinvestors.com

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