CLS Holdings USA Provides an Update to the First Complete Year of Adult Use Cannabis in Nevada
Total Sales and Tax Revenue Higher than Initial Forecasts
LAS VEGAS, July 12, 2018 (GLOBE NEWSWIRE) -- CLS Holdings USA, Inc. (OTCQB:CLSH) “CLS,” a diversified cannabis company operating as Cannabis Life Sciences and a fully licensed integrated cannabis producer and retailer in Nevada, today is pleased to provide an update to the first complete year of adult use cannabis in Nevada, the first state the Company is operating in.
According to the Nevada Department of Taxation, marijuana flower/bud accounted for roughly 50 percent of all combined medical and adult-use marijuana purchases by consumers in Nevada, followed by concentrates at about 25 percent and infused edibles at 13 percent. Oasis Cannabis announced that packaged marijuana flower/bud and pre-rolled joints represented 67 percent of the total sales, followed by concentrates at 20 percent and infused edibles at 9 percent.
The co-founder of Oasis Cannabis, Ben Sillitoe commented on the sales mix, “Convenience items like disposable vapor pens and pre-rolled joints are very popular with our tourist customers and together they make up about 25% of total sales at Oasis.”
Oasis Cannabis served over 127,000 customers in its 1st year of adult-use sales. About 13% of those orders and 22% of total sales were to medical patients. The average order from a medical customer was $73 whereas a typical recreational customer spent $41 per order. “A medical patient will typically consume more cannabis than an average retail customer, so we expect to see larger average purchases from that group,” explained Sillitoe.
Home deliveries made up 5 percent of the total orders and 11% of total revenue, reflecting a higher average order of $98 versus $42 from in-store customers. The average delivery order from a medical customer was $114 and the average delivery to a recreational customer totaled about $87. “Medical customers make up about 50% of total delivery sales for a couple reasons,” Sillitoe explained. “We’ve been delivering to medical patients since we opened in 2015 so we’ve had time to build a loyal customer base in that segment. Medical patients are also more likely to be inconvenienced by a trip to the store because of various health reasons.”
About Oasis Cannabis (http://oasiscannabis.com)
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 marijuana 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. The company recently commenced wholesale offerings of cannabis in Nevada with the launch of its City Trees brand of cannabis concentrates and cannabis-infused products in August 2017. An expansion of its cultivation and production facility is currently underway and is expected to be completed during the second half of 2018.
About CLS Holdings USA, Inc.
CLS Holdings USA, Inc. (CLSH) is a diversified cannabis company including a fully licensed integrated cannabis producer and retailer in Nevada and plans to expand to other states.
CLS stands for "Cannabis Life Sciences," in recognition of the Company's patent pending 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.
For additional information, please visit: http://www.clsholdingsinc.com
Forward Looking Statements
This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to anticipated future events, future results of operations or future financial performance. These forward-looking statements include, but are not limited to, statements relating to whether certain transactions will be completed, the terms of such transactions, the descriptions of the companies and the business that any potential target companies could bring to CLS Holdings. 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 and we cannot guaranty that the proposed transactions described in this press release will occur. 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. CLS Holdings USA has entered into a definitive agreement to acquire Oasis Cannabis, which is expected to close in the second quarter of 2018. See CLS Holdings USA filing with the SEC for additional details.
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Released July 12, 2018