CLS Holdings USA, Inc. (CLSH) is a company that is worth looking at for a myriad of reasons. Notably their positioning in high growth and high foot traffic states like Nevada.
Now, this doesn’t hope and dreams with a company saying they are going to get entrenched in one of the hottest markets in the United States, but a company that has already done it, and business is booming. This past April 2019, (CLSH) posted exceptional numbers from their Oasis Dispensary and followed the month of May 2019, up with even better numbers. Besides the revenue, the key here is that they are clearly establishing a retail customer following that is growing. Here are some Highlights for April 2019:
- The Oasis dispensary had 15,000 customers that month.
- City Trees, the Company’s branded division, had a revenue increase from $236,000 in April 2018 to $489,000 in April 2019, which is a year over year increase of 52%.
- Also, Gross margins increased by 37 %, which is a 44% increase from the previous year.
As for the month of May 2019, those numbers and margins have improved, even with fewer visitors coming to Vegas for 100° plus temperatures!
As for Massachusetts, this cannabis market is poised to have some of the highest prices in the US due to supply and demand issues. While this might not always be the case, as they say, make hay while the sun shines. Wholesale flower prices could reach $4,000 per pound, and retail prices could be even higher at $7,000 per pound.
Currently, CLS Holdings USA, Inc. (CLSH) is well positioned with their soon to be fully acquired Good Health Dispensary in Brockton, Massachusetts. This letter of intent (LOI) for the acquisition offers another strategic approach to the market addressing multiple supply and retail chains, for product. The good news here is that the Good Health Dispensary as of last week took another significant step on the way to getting final approval from the state to sell marijuana for adult recreational use after a City Council subcommittee approved the proposal on Wednesday, 6/6/2019.
Good Health, The Brockton dispensary was only the second licensed dispensary in the state and has been operational since September 2015, which has been for medical marijuana only. In Good Health is currently servicing 17,000 registered patients and delivering to 1,700 homes with key product offerings of flower, concentrates, vapes, edibles, pre-rolls, and tinctures. Having 17,000 registered patients is exciting because of the intrinsic value of name recognition. When you ask a patient where they got their cannabis or what their experience has been thus far, it stands to reason that should they get approval for recreational sales, the numbers will be exceptional. It’s also not just an opinion we share here at Marijuana Stocks, but one that is shared by Cannacord Genuity as seen below.
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