CLS Holdings USA (CSE:CLSH, OTCQB:CLSH), Inc said its wholly-owned subsidiaries in Nevada generated net revenue of $1.75 million and a record gross margin of 55% during January, maintaining the company's goal of achieving a greater than 50% gross margin.
The Las Vegas, Nevada-based cannabis company said net revenue for its wholesale branded division at City Trees continued to rise with monthly net revenue growth of 127% year-over-year and 191% over 2020.
"2022 is off to a great start," the company’s president and chief operating officer Andrew Glashow said in a statement. "We are committed to reinvesting in our growth and made a number of significant hires to bolster our strong core team. Additionally, we are investing in our facility to ramp up greater production to keep up with our current sales trends.”
READ: CLS Holdings USA releases initial 2022 outlook and review of 2021 financial and operational highlights
During the month, CLS Holdings USA (CSE:CLSH, OTCQB:CLSH) said City Trees continued to maintain its position as the number one selling tincture brand in the state of Nevada, as reported by BDS Analytics, with sales of over 44,000 units.
Additionally, BDS Analytics reported that City Trees sold over $1 million of concentrates at retail during December 2021, the company noted.
In January, it signed two significant manufacturing deals and began exclusively producing live resin concentrates for renowned brand Sauced in Nevada. It also signed on to produce live and cured resin concentrates, live resin vape cartridges and pods, distillate vape cartridges and pods and tinctures for a notable celebrity brand set to release in Nevada in April.
“We are keenly aware of the opportunities in front of us and truly believe we are well-positioned to be one of the predominant cannabis companies in the state of Nevada as consolidation continues and the cream rises to the top,” Glashow concluded.
CLS stands for 'Cannabis Life Sciences', in recognition of 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 company's business model includes licensing operations, processing operations, processing facilities, sale of products, brand creation and consulting services.
Contact the author at stephen.gunnion@proactiveinvestors.com