CLS Holdings (CLSH)
Record Q1 Results
- $1.15 Price Target by Canaccord
CLS Holdings (OTCQB: CLSH) just announced record sales of
$2.9 million, and record gross profit of $1.4 million for fiscal Q1
2020
Price target of $1.15 per share by Canaccord
Genuity,
Acquisition Target In Good Health receives
Massachusetts State Approval for Final Recreation
License
Miami, FL-- InvestorsHub
NewsWire – October 15, 2019 – 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).
This could be the biggest play in the Cannabis
space in years. See the full story on
http://www.EmergingGrowth.com
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 record sales of
$2.9 million, and record gross profit of $1.4 million for fiscal Q1
2020 – An increase of $1.2 million or 72.7% over fiscal
Q1 2019
See the full press release
here.
Highlights from the Fiscal Q1 2020 Results PR:
- Record consolidated revenue of $2.9
million compared to
$1.7 million in fiscal Q1 2019, an
increase of $1.2 million or
72.7%.
-
Record
consolidated gross
profit of $1.4
million, a 147.7% increase over the
same period a year earlier.
- Record consolidated gross profit margin of 50.6%
compared to 35.3% in fiscal Q1 2019.
- Consolidated net loss of $1.4 million or $0.01 per
share compared to a net loss of $16.7 million or $0.23 per share in
fiscal Q1 2019.
-
Cash and cash equivalents
of $5.9 million as of August 31, 2019.
- Record revenue from the Company's Oasis Cannabis
dispensary of $2.1 million, a 96.6% increase over fiscal Q1 2019
revenue of $1.1 million.
-
Record Oasis Cannabis
gross profit margin of 48.3% compared to 35.9% in fiscal Q1
2019.
- A 98.4% increase in dispensary customers, from
26,438 (294 average per day) in fiscal Q1 2019 to a record 52,448
(583 average per day) in fiscal Q1 2020.
-
Record revenue per SF of
$397 compared to $205 per SF during the same period a year earlier,
an increase of 93.6%.
-
Record revenue from the
Company's City Trees' branded products division of $0.8 million
compared to $0.6 million in fiscal Q1 2019, an increase of $0.2
million or 33.6%.
- Record City Trees branded products gross profit
margin of 56.2% compared to 34.1% in fiscal Q1
2019.
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 that In Good
Health, a licensed medical dispensary, which the Company has the
exclusive right to acquire in January 2020, was granted 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.
-
$50 million acquisition which should throw off $20
million in EBITDA the first year.
-
Cash and cash equivalents of $5.9 million as of
August 31, 2019.
-
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.
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.
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
Discovery Gold Corp.
Discovery Gold Corp., (OTC Pink:
DCGD) on its
announcement of adding George Jage to its strategic advisory board fell 80% to
.43 per share. Since then, the stock has recouped about half
of its losses but sees strong resistance around the $1.30
level.
Have a look at CLS Holdings, Inc. (OTCQB: CLSH) who just released record numbers -
Again. This could be the
most undervalued stock in the cannabis sector. Canaccord Genuity
issued a $1.15 price target.
Cana Capital Corp.
Shares of stop sign company Canal Capital Corp. (OTC: COWPP), the
preferred shares of Canal Capital Corp. (OTC: COWP) have been trading up 3,200% with over the
past 5 trading sessions. You'd be hard pressed to find any info on
this company as there have been no filings or press released on OTC
Markets.
CLS Holdings, Inc. (OTCQB: CLSH), a fully reporting QB just hit
record numbers and was issued a $1.15 price target from Canaccord
Genuity.
Advaxis, Inc.
Shares of Advaxis, Inc. (Nasdaq: ADXS) have been on a constant slide
since the stock bounced back in April to almost $11.00 per
share. It seems that investors got a little bit excited
driving the price from .22 to .44 over the past three weeks.
The .44 mark is strong resistance as the stock slips to .31 per
share. This stock should see its support of .21 before another move
to the upside.
Have a look at CLS Holdings, Inc. (OTCQB: CLSH) with its over $1 million per month
in sales and $10 million in the bank.
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