Las Vegas, Nevada--(Newsfile Corp. - April 15, 2024) - CLS Holdings USA, Inc. (OTCQB: CLSH) (CSE: CLSH), the ''Company'' or ''CLS,'' a diversified cannabis company operating as Cannabis Life Sciences, today announced its financial results for the quarter ending February 29, 2024, and provided a detailed industry analysis in a statement from Chairman and CEO, Andrew Glashow.
CEO Andrew Glashow Shares Insights on Industry and Legislative Hurdles
In a detailed statement to shareholders, Glashow discussed the persistent challenges faced by the cannabis industry, primarily attributed to the absence of substantial federal legislative changes. He highlighted the company's efforts to navigate these challenges through strategic adjustments and operational improvements.
Industry and Legislative Outlook
Mr. Glashow provided a critical view of the cannabis industry's standing in political circles, emphasizing the need for federal reforms to address taxation and banking issues that continue to constrain the sector's growth. He acknowledged improvements at the state level, particularly in Nevada, where regulatory advancements have benefited the industry. However, he maintained a cautious stance on the likelihood of significant federal progress in the near term, suggesting that meaningful change might ultimately arise from Supreme Court action in 2025.
Key Points from Fiscal Q3 2024
Revenue: The company reported a revenue decrease to $4,926,457, marking a 9.4% dip from the previous year, attributed to broader economic challenges affecting the market.
Operational Developments: CLS Holdings underscored progress in its consumption lounge project in Nevada and its expansion into New Mexico and New York, leveraging licensing agreements for its City Trees brand.
Financial Health: Despite a challenging quarter, the company achieved positive net cash flow from operating activities of $588,850, for the nine months ending February 29, 2024, reflecting a 158% improvement compared to the same period of the prior year with a negative cash flow of $1,018,583. Along with this improvement, the company has also decreased its total liabilities by $3.2 million compared to the fiscal year end of May 31, 2023.
Market Position: The company's market capitalization stood at approximately $4 million, with an enterprise value of $11 million. CLS Holdings remains focused on evaluating opportunities to enhance shareholder value.
Looking Forward
Mr. Glashow reiterated the company's commitment to transparency and active communication with stakeholders, emphasizing the importance of adapting to industry dynamics and regulatory changes.
CLS Holdings USA Inc. (OTCQB: CLSH) 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. 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.
Oasis Cannabis has operated a cannabis dispensary in the Las Vegas market since dispensaries first opened in Nevada in 2015 and has been recognized as one of the top cannabis retailers in the state. Its location within walking distance to the Las Vegas Strip and Downtown Las Vegas, in combination with its delivery service to residents, allows it to efficiently serve both locals and tourists in the Las Vegas area. In February 2019, it was named "Best Dispensary for Pot Pros" by Desert Companion Magazine. In August 2017, Oasis commenced wholesale offerings of cannabis in Nevada with the launch of its City Trees brand of cannabis concentrates and cannabis-infused products.
Founded in 2017, City Trees is a Nevada-based cannabis cultivation, production and distribution company that offers a wide variety of products with consistent results. City Trees products are available in numerous dispensaries throughout the state of Nevada, New Mexico, and New York.
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and ''forward-looking statements'' as that term is defined in the Private Securities Litigation Reform Act of 1995 (collectively, the ''forward-looking statements''). These statements relate to, among other things, the expected development of our business and joint ventures, results of operations and financial performance, future liquidity, working capital and capital requirements. The continued spread of COVID-19 could have, and in some cases already has had, an adverse impact on our business, operations and financial results, including through disruptions in our cultivation and processing activities, supply chains and sales channels, and retail dispensary operations as well as a deterioration of general economic conditions including a possible national or global recession. In some cases, you can identify forward looking statements by terminology such as "may," "might," "will," "should," "intends," "expects," "plans," "goals," "projects," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these terms or other comparable terminology. These forward-looking statements are only predictions, are uncertain and involve substantial known and unknown risks, uncertainties and other factors which may cause our actual results, levels of activity or performance to be materially different from any future results, levels of activity or performance expressed or implied by these forward-looking statements. We cannot guarantee future results, levels of activity or performance. You should not place undue reliance on these forward-looking statements, which speak only as of the date that they were made. These cautionary statements should be considered together with any written or oral forward-looking statements that we may issue in the future. Except as required by applicable law, we do not intend to update any of the forward-looking statements to conform these statements to reflect actual results, later events or circumstances or to reflect the occurrence of unanticipated events.
