Joint Venture with Ranson Shepherd to Manufacture Pre-Rolls LAS VEGAS, NV / ACCESSWIRE / September 28, 2021 / CLS Holdings USA, Inc. (OTCQB:CLSH) (CSE:CLSH), the ''Company'' or ''CLS'', a diversified cannabis company operating as Cannabis Life Sciences, today announced a 50/50 joint venture with RANSON SHEPHERD to manufacture pre-rolls, a category that represented approximately 11% of overall cannabis sales in Nevada in 2020. This announcement comes on the heels of the Company's most successful fiscal year, during which the Company achieved multiple record-setting months at both the retail and wholesale subsidiary level.
CLS Joint Venture Highlights
- CLS and Mr. Shepherd will lend their well-respected reputations to a new line of in-demand products
- The joint venture anticipates producing 200,000+ pre-rolls per month after a start-up period
- The current average wholesale price per pre-roll in Nevada is $3.00 + per unit.
- The joint venture will utilize the Company's existing 22,500 sq ft manufacturing facility creating economies of scale
- The joint venture plans to create Its own pre-rolls as well as manufacture pre-rolls for other brands under exclusive licensing agreements
- The joint venture is expected to provide a structural cost advantage and become one of the lowest cost providers based on raw material procurement
- The joint venture anticipates achieving gross margins in-line with CLS' standalone gross margins and to become accretive to CLS
- The joint venture believes it will create additional jobs and benefits to the community
This collaborative venture is expected to allow for the rapid production of high quality, low-cost pre-rolls. The venture, after an initial startup period, anticipates producing 200,000 pre-rolls per month. According to recently published data the average wholesale price for pre-rolls in Nevada exceeds $3.00 per unit. The Company plans to manufacture .5/.8/1.0 gram infused pre-rolls. The Company anticipates beginning production of the joint venture's pre rolls in the 1st quarter of 2022.
"We are excited to add yet another notch to our growing belt of high quality, reliable products that has helped the Company become more successful than ever," said Company President and COO Andrew Glashow. "We anticipate to continue riding this upward wave of success with our latest collaboration. Ranson has established himself as a key player in Nevada's cannabis industry in a short amount of time and we could not be more excited to partner with him on one of the market's most sought after items."
The joint venture will manufacture and warehouse the joint venture's pre-rolls utilizing the Company's existing 22,500 sq ft manufacturing facility creating economies of scale with no additional cost. The joint venture expects to create its own pre-rolls, as well as manufacture pre-rolls for other brands under exclusive licensing agreements. This joint venture is also expected to create additional jobs and benefits to the community.
https://www.accesswire.com/665458/CLS-Holdings-USA-Inc-Announces-Joint-Venture-with-Ranson-Shepherd-to-Manufacture-Pre-Rolls