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Rising in COVID Times: A True Nevada Cannabis Success Story

Stockhouse Editorial
0 Comments| September 18, 2020

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(Oasis Cannabis Dispensary. Las Vegas, NV. Image via CLS Holdings.)


Nevada’s cannabis industry is booming. Deemed an essential service in response to the COVID-19 pandemic, Click to enlargecompanies operating in this marketplace have seen impressive growth this year and many are preparing to capitalize on further success to come ….

Diversified cannabis Company CLS Holdings USA, Inc. (CSE: CLSH, OTCQB: CLSH, Forum) acts as an integrated cannabis producer and retailer through its Oasis Cannabis subsidiaries in Nevada and plans to expand to other states.

The Company’s name CLS stands for “Cannabis Life Sciences”, in reference to its patented proprietary method of extracting various cannabinoids from the marijuana plant and converting them into products that boast a higher level of quality and consistency.

2020 has been a good year for CLS, which is not something you hear a company often claim and they managed to remain open for business to the public the entire time. This summer had seen some of the greatest success in the Company’s history.

(Chart via CLS Holdings.)


In July, its most successful month to date, CLS earned revenues of $1.3 million (USD) and gross margins of 52%, the Company had increased its July 2020 net revenue by 44.8% compared to July 2019 and 138% over July 2018.

In August, it reported total revenues of $11.9 million for its fiscal year-end, rising from $8.4 million recorded for fiscal year 2019. Its customer base also increased 70% in that time.

There are many facets that allow CLS to function. Its patented proprietary method of extracting various cannabinoids from the marijuana plant and converts them into products with a higher level of quality and consistency.

Located within walking distance to the Las Vegas Strip and Downtown Las Vegas is Oasis Cannabis, which has been in business since dispensaries opened in 2015 and is considered one of the top marijuana retailers in the state.

City Trees is CLS’ cannabis cultivation, production, and distribution arm and offers a wide variety of products with consistent results. The company was founded in 2017 and its products are available in numerous dispensaries throughout the state of Nevada.

The Company’s business model also includes licensing operations, processing operations, processing facilities, sale of products, brand creation, and even consulting services.

Stockhouse Editorial had the chance to find out more from CLS’ President and COO, Andrew Glashow.


SH: You have attributed much of your momentous sales success during the COVID pandemic to your staff and leadership. What are some highlights among your team in terms of experience that you would like to single out?

AG: We’re fortunate to have a great team to help lead us through the trials of 2020. We brought on a new Director of Operations in 2019 who brought years of experience in established recreational cannabis markets to help build excellent relationships with our vendors and keep things running smoothly. Our whole team proved highly adaptable as we quickly introduced delivery and curbside services to Oasis to comply with state mandates, and our laboratory team at City Trees has been instrumental in helping move the brand forward with innovative new products.


SH: How about yourself, can you tell us a bit about your background and what brought you to the cannabis industry?

AG: I grew up in Rhode Island, where I was first introduced to cannabis at 17 by a friend who had a small home grow. I saw great potential in bringing my experience in microcap and start-up growth to an industry that greatly benefits people and is forecasted for incredible expansion as legalization spreads nationally.


SH: CLS recently expanded its sales team in anticipation of rising demand throughout Nevada and from neighboring states, are there additional ways that the Company is preparing itself to meet this increased demand?

AG: We’ve invested heavily in our teams across the board - most notably with the completion of our new extraction lab in April of this year. Our new facility can process raw material with significantly greater efficiency than ever before, and is using proprietary processes never seen at this scale in our industry.


SH: Oasis Cannabis was named "Best Dispensary for Pot Pros" by Desert Companion Magazine in February 2019, it seems like it is quite popular with the local crowd, from all the dispensaries in the state to choose from, what was it about their operation that appealed to you?

AG: The greatest potential we saw in Oasis was in the people - both the staff and the customers. Both are remarkably loyal and have built fantastic relationships over the years. We wanted to make sure that aspect was enhanced with a more accessible space and expanded product offerings.


SH: Earlier this summer, CLS mentioned plans to unveil a new product line that will feature environmentally friendly packaging this summer, is there anything more you can share about this?

AG: Our City Trees brand officially unveiled new packaging in September, all of which is made with recycled materials and printed with soy-based inks. We’re beyond thrilled to make this transition, and this is only the first step in our sustainability initiatives.


SH: Can you tell us a bit more about City Trees and that company’s products?

AG: City Trees is creating some of the cleanest, safest cannabis products on the market with higher levels of quality and consistency. We are producing vape products, craft concentrates, and a wide range of tinctures using a proprietary ethanol extraction process. Our team is doing constant research and development to identify the next innovative product they can produce. Most recently, we released a range of limited-edition products to commemorate our rebrand, including the first-ever live resin agave tincture in Nevada.


(City Trees facility. Image via CLS Holdings.)


SH: When can investors expect September sales numbers?

AG: We will be announcing our September results in the third week of October.


SH: Looking ahead to the near future, what can you share about your strategy to expand your business into other states?

AG: We have an eye toward secondary and tertiary markets in the Southwest as states with existing medical programs transition to recreational markets. Access to high quality service and products in some of these states is still lacking, and we’re aiming to help fill in those gaps.


SH: How about in a broader sense, what do you predict for the cannabis industry, especially where the impact of the COVID pandemic is concerned?

AG: We expect to see continued growth in delivery and curbside pick up services, which were introduced at Oasis in the immediate wake of COVID-19. We may also see more consumers consider consumption methods that reduce overall respiratory harm, including vapor and ingestible products.


SH: Thank you again for your time today, is there anything further you would like to add?

AG: While we’re fortunate to have experienced sustained growth through these last few uncertain months, we’re maintaining our focus on providing the safest, most comfortable environment for our employees and customers. It’s important to us that we’re making compassionate choices that create the best outcomes for all while continuing to provide the highest level of service and safest cannabis products we can produce. We’re looking forward to a day when these considerations can draw less of our focus, but until that day, this will continue to be a vital component of our mission.


For more on this Company’s business, visit clsholdingsinc.com.


New to investing in Cannabis? Check out Stockhouse tips on How to Invest in Cannabis Stocks and some of our Top Cannabis Stocks.

For more of the latest info on Cannabis, check out the Cannabis Trending News hub on Stockhouse.


FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.


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