CLS Holdings (CLSH) $1.15 Price Target - MASS Approval for Recreational License
September 17 2019 - 7:17AM
InvestorsHub NewsWire
CLS Holdings (CLSH) $1.15 Price Target – MASS
Approval for Recreational
License
CLS Holdings (OTCQB:
CLSH) was just issued a price target of $1.15 per share by
Canaccord Genuity, - In Good Health receives Massachusetts State
Approval for Final Recreation
License
Miami, FL -- September
17, 2019 -- InvestorsHub NewsWire -- EmergingGrowth.com, a leading
independent small cap media portal with an extensive history of
providing unparalleled content for the Emerging Growth markets and
companies, reports on CLS Holdings USA, Inc. (OTCQB: CLSH).
CLSH may not be at these levels much
longer.
See the Press Release and more on CLS Holdings,
Inc. (OTCQB:
CLSH) at EmergingGrowth.com
https://emerginggrowth.com/stock-report/?code=clsh
CLS Holdings (OTCQB: CLSH) (CLSH.CN) is a best of breed stock
that combines all of the best attributes of cannabis stocks into
one company.
CLS Holdings (OTCQB: CLSH) just announced that In Good
Health, a licensed medical dispensary, which the Company has the
exclusive right to acquire in January 2020, was granted on Friday,
September 13, 2019 a final license for recreational use at its
current location in Brockton, MA.
In Good Health operates a large medical cannabis
dispensary business consisting of over 25,000 registered patients,
delivery to 2,800 patients per month and maintains an 18,000 square
foot grow with capacity to produce 9,000 pounds of finished flower
per year. At today’s retail price of $7,000 per pound this fully
built out operation is capable of generating $60 million in annual
revenue and gross profit of $ 35
million.
CLS Holdings (OTCQB: CLSH) also just received a C $1.50 – USD
$1.15price target from Canaccord Genuity. See their full report
here.
CLS Holdings (OTCQB: CLSH) just announced record sales of
$1.16 million for the month of August alone. See the full
press release here.
· $50 million
acquisition which should throw off $20 million in EBITDA the first
year.
· $10 million in
the Bank
· Strong medical
and retail marijuana franchise in both Massachusetts and
Nevada.
· With the advent
of recreational sales in in Massachusetts they are at an inflection
point where sales growth is going to compound
higher.
See the full report on CLS Holdings USA, Inc. on
EmergingGrowth.com here.
See more news on CLS Holdings USA, Inc. on
EmergingGrowth.com here.
CLSH’s management team has also fully aggregated
one acquisition know as Oasis Cannabis. This is one of the top
dispensaries n Las Vegas and one glance at the interior retail
space will tell the story with its clean professional
look.
CLSH Management also has another acquisition in
the pipeline to hit in Q1 2020. The next Brockton Acquisition
called In
Good Health is unique, because the total purchase price is $50
million in cash, notes and equity, but they are getting a company
that has the potential to throw off $20 million in EBITDA the first
year assuming modest growth.
They also have a decent balance sheet with $10
million in the bank at FYE 19 and the past quarterly reports have
showed a positive trend that looks like they are turning the corner
to profitability. They also have plans to grow their
operations capacity and have a retail brand known as City
Trees which is a specially formulated THC distillate used in
vape products, tinctures, and caplets. This product is
gaining traction in the market and is distributed in 47
dispensaries. They are vertically integrated and in every way
a seed to shelf company. This means there are so many chances
for cross promotion, which eventually finds its way to the bottom
line.
Many still see huge opportunity in cannabis but
the industry itself has gone through a massive correction in its
price to sales multiples in just the past 6 months. This
means investors are not as ready to pay for sales as they once
were. Leading in the contraction are the top players like
Canopy Growth (NYSE:
CGC), Tilray, Inc. (NASDAQ: TLRY),
and CuraLeaf (OTC Pink:
CURLF) which nearly halved their multiples. The biggest
standout was Cronos Group, Inc. (NASDAQ: CRON)
which went from 255 down to 19. This multiple contraction
means that investors will need to see increasing revenue growth
quarter over quarter to sustain the stock prices of these
companies.
Investment
Summary
The cannabis sector clearly looks like it has
put in a double bottom on a technical basis so now could be an
opportune time to step into the sector and buy value. The
next stage of growth could very well be mergers and acquisitions,
but it’s unlikely that the top brands backed by conglomerates will
be creating mega brands. Those businesses like Tilray, Inc.
(NASDAQ: TLRY),
Cronos Group, Inc. (NASDAQ: CRON),
and Canopy Growth (NYSE:
CGC) will start to work when these large brands start selling
and launching CBD or THC infused products. Mergers an
acquisition plays could also begin to happen in the space and
represent big upside for investors.
The sweet spot in the sectors seems to be a
company that can successfully complete acquisitions at fantastic
valuations while increasing their revenues and profitability all at
once. CLS Holdings USA, Inc. (OTCQB:
CLSH) is a best of breed stock with all the characteristics an
investor is looking for including a great price. By all
metrics the stock seems extremely undervalued and ready to
run. After the acquisition in 2020 revenues are expected to
be $50 million.
CLSH may not be at these levels much
longer.
See the Press Release and more on CLS Holdings,
Inc. (OTCQB:
CLSH) at EmergingGrowth.com
https://emerginggrowth.com/stock-report/?code=clsh
Other Companies in the news and featured on
EmergingGrowth.com
Hypertension
Diagnostics, Inc.
Stop Sign company Hypertension Diagnostics, Inc. (OTC: HDII) traded up 300% on over $1 million
worth of stock on the days leading up to its first disclosure
since 2014. The disclosure was in the form of an 8K detailing
a controlling interest change. No press releases have been
announced. Somebody was obviously in the know.
Have a look at CLS Holdings, Inc. (OTCQB: CLSH) who just released
numbers. This could be the most undervalued stock
in the cannabis sector. Canaccord Genuity issued a $1.15 price
target.
Discovery Gold Corp.
Shares of Discovery Gold Corp. (OTC Pink: DCGD) tumbled last week 80%
before filing a NT 10-Q. With its current market cap
falling from $562 million to under $150 million in 4 trading
sessions, its 10Q, if / when filed, better have some strong
numbers, or its value will continue to fade.
CLS Holdings, Inc. (OTCQB: CLSH), a fully reporting QB just
hit record numbers and was issued a $1.15 price target from
Canaccord Genuity.
Anavex Life Sciences Corp.
Shares of Anavex Life Sciences Corp. (NASDAQ: AVXL) rose 15% yesterday on news
concerning preliminary clinical efficacy data of its
U.S. phase 2 clinical trial of ANAVEX 2-73 in patients with
Rett Syndrome. The company utilizes precision genetic
medicine to treat severe and devastating
neurological disorders as well as neurodegenerative diseases
such as Parkinson’s Disease, and Alzheimer’s Disease.
Medical Marijuana is used to treat many of the same
Diseases. Have a look at CLS Holdings,
Inc. This could be the most undervalued stock in
the cannabis sector.
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