CLS Holdings (CLSH.C) recorded July sales of $1.07M, a 91% increase compared to revenue from the same month in 2018.

This isn’t the first time CLS Holdings topped $1M in monthly sales: the company reported the same thing in June, May, April, and March of this year.

 “July was another strong month for Oasis Cannabis and City Trees, continuing what has already been an exciting summer for the Company.

–Andrew Glashow, president and COO of CLS Holdings

Additionally, Glashow provided a corporate update to the company’s development timeline, saying that “construction of our proprietary patented conversion and extraction facility is progressing on schedule; stay tuned as we share images on our new corporate website.”

July 2019 Highlights

•  Consolidated revenue of $1.07 million compared to $0.60 million in July 2018, an increase of 91%.
•  Revenue from the Company’s Oasis Cannabis dispensary of $659,172, a 78% increase over July 2018 dispensary revenue of $370,319.
•  A 104% increase in dispensary customers, from 8,173 (250 per day) in July 2018 to 16,674 (550 per day) in July 2019.
•  Revenue from City Trees, the Company’s branded products and bulk flower division, of $446,156, a 113% increase over July 2018 City Trees revenue of $209,443.
•  July 2019 consolidated gross margin of 51.67%, up from consolidated gross margin of 33.45% in July 2018.

CLS Holdings operational review

In the same vein of iAnthus Capital Holdings (IAN.C) and Curaleaf (CURA.C), CLS Holdings is a U.S.-based multi-state operator (MSO).

In Nevada, the company uses its City Trees cultivation and production arm to supply its Oasis Cannabis dispensary in downtown Las Vegas.

Oasis Cannabis was voted best dispensary for Pot Pros March 2019, and completes on average more than 450 orders each day.

Besides selling a lot of pot, City Trees is doing its part to ensure its operations are as sustainable and, when possible, beneficial to the planet as possible.

Its vaporizers, for example, use longer-lasting ceramic atomizers, ensuring as few disposable City Trees vapes occupy Nevada land fills as possible.

City Trees also implemented a battery recycling program to safely recycle lithium-ion batteries from vaporizer pens, with all proceeds being donated to non-profits.

Oasis Cannabis, on the other hand, hired Snoop Dogg and Ray J to collaborate on a smoke session-inspired track which you can check out below.

CLS Holdings is also active on the East Coast, with its In Good Health brand of dispensaries in Brockton, Massachusetts generating approximately $1M in monthly sales before the introduction of recreational cannabis use.

Brockton dispensary highlights 

• Brockton is one of the top medical dispensaries in Massachusetts, serving 17,000 registered patients and delivering to 1,700 homes
• 300,000 transactions processed since 2015; Average dispensary sale is $125 and the average delivery sale is $300
• Capacity to serve 800 to 1,000 customers per day utilizing 12 registers

CLS’ fundamentals

As of the time of writing, CLSH is down 10.8% to CAD$0.29 on no news. The company has 40.6 million shares outstanding and a market cap of $125.1M.

CLS Holdings, according to their Q1 financials, had $11.9M in cash and cash equivalents as of Feb. 28, 2019.

Plenty has happened since February, but with a quick ratio of 2.57, the company has more than enough assets to cover its liabilities.

And clocking over $1M each month in revenue is an impressive feat. It’s possible the company has been burning through cash, we won’t know until we see their latest financials, but their sales growth has to offset that fear.

 

–Ethan Reyes

Full disclosure: CLS Holdings is an equity.guru marketing client.