CLS Holdings USA, Inc. (OTCQB: CLSH) “CLS,” a diversified cannabis company operating as Cannabis Life Sciences and an integrated cannabis producer and retailer in Nevada through its Oasis Cannabis subsidiaries, today is pleased to provide an update on its recent business initiatives in Nevada and Massachusetts.
CLS has loaned $5 million to In Good Health, a licensed medical dispensary in Brockton, Massachusetts with a significant market share. Along with the loan, CLS has an option to acquire In Good Health. In Good Health is located 25 miles south of downtown Boston and is one of the 38 licensed dispensaries in the state. The Brockton dispensary was the second licensed dispensary in the state and has been operational since September 2015, and has been medical only up until this time. In Good Health is currently servicing 18,250 registered patients and delivering to 2,100 homes with key product offerings of flower, concentrates, vapes, edibles, pre-rolls and tinctures.
CLS has also agreed in principle to form an 80/20 joint venture with CannAssist, which CLS will own 80%. CannAssist plans to build out a recreationally licensed cultivation grow facility in Leicester, Massachusetts. The planned Leicester 86,000 square foot facility is in possession of its host community agreement, is awaiting state acknowledgement of its pending recreational licenses and upon completion will be the third largest cultivation grow in the state. The Leicester facility is anticipated to produce its first harvest in the fourth quarter of 2019 and be able to produce 28,000 lbs of flower along with 858,000 grams of extract once it is operating at capacity. At current pricing of $3,500 per pound of flower and $40 per gram of extract, total capacity is expected to reach $120 million in revenue. CLS anticipates generating substantial positive cash flow from the joint venture.
In regards to its planned Canadian Securities Exchange (CSE) listing, CLS is filing all appropriate documents with the CSE and anticipates being listed and trading on/around January 10, 2019.
Jeff Binder, Co-Founder, Chairman and Chief Executive Officer of CLS, stated, “We are pleased to announce all of this progress as we continue down the path of executing our aggressive growth plans. With their previously announced growth opportunities, the just announced Canadian Securities Exchange conditional listing approval and the regulatory landscape continuing to shift in favor of the sector; we see a bright future for the company and our shareholders.”