CLS Holdings USA Inc. Reports Fiscal Year 2024 Third Quarter Performance and Provides Comprehensive Industry Outlook
- Positive: Achieved positive net cash flow of $588,850 for the nine months ending February 29, 2024, showing a 158% improvement compared to the prior year.
- Positive: Decreased total liabilities by $3.2 million compared to the fiscal year end of May 31, 2023.
- Negative: Revenue decreased to $4,926,457 in the fiscal year 2024 third quarter, marking a 9.4% dip from the previous year.
- Negative: Market capitalization stood at approximately $4 million, with an enterprise value of $11 million.
- None.
Las Vegas, Nevada--(Newsfile Corp. - April 15, 2024) - CLS Holdings USA, Inc. (OTCQB: CLSH) (CSE: CLSH), the ''Company'' or ''CLS,'' a diversified cannabis company operating as Cannabis Life Sciences, today announced its financial results for the quarter ending February 29, 2024, and provided a detailed industry analysis in a statement from Chairman and CEO, Andrew Glashow.
CEO Andrew Glashow Shares Insights on Industry and Legislative Hurdles
In a detailed statement to shareholders, Glashow discussed the persistent challenges faced by the cannabis industry, primarily attributed to the absence of substantial federal legislative changes. He highlighted the company's efforts to navigate these challenges through strategic adjustments and operational improvements.
Industry and Legislative Outlook
Mr. Glashow provided a critical view of the cannabis industry's standing in political circles, emphasizing the need for federal reforms to address taxation and banking issues that continue to constrain the sector's growth. He acknowledged improvements at the state level, particularly in Nevada, where regulatory advancements have benefited the industry. However, he maintained a cautious stance on the likelihood of significant federal progress in the near term, suggesting that meaningful change might ultimately arise from Supreme Court action in 2025.
Key Points from Fiscal Q3 2024
- Revenue: The company reported a revenue decrease to
$4,926,457 , marking a9.4% dip from the previous year, attributed to broader economic challenges affecting the market. - Operational Developments: CLS Holdings underscored progress in its consumption lounge project in Nevada and its expansion into New Mexico and New York, leveraging licensing agreements for its City Trees brand.
- Financial Health: Despite a challenging quarter, the company achieved positive net cash flow from operating activities of
$588,850 , for the nine months ending February 29, 2024, reflecting a158% improvement compared to the same period of the prior year with a negative cash flow of$1,018,583. Along with this improvement, the company has also decreased its total liabilities by$3.2 million compared to the fiscal year end of May 31, 2023. - Market Position: The company's market capitalization stood at approximately
$4 million , with an enterprise value of$11 million . CLS Holdings remains focused on evaluating opportunities to enhance shareholder value.
Looking Forward
Mr. Glashow reiterated the company's commitment to transparency and active communication with stakeholders, emphasizing the importance of adapting to industry dynamics and regulatory changes.
Please click the link for a statement from CEO Andrew Glashow on Fiscal Year 2024 Third Quarter Performance CLS Holdings USA Inc. CEO Statement to Shareholders.
Oasis Cannabis Dispensary and City Trees production facility
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/6315/205510_clsimages.jpg
About CLS Holdings USA Inc.
CLS Holdings USA Inc. (OTCQB: CLSH) is a diversified cannabis company that acts as an integrated cannabis producer and retailer through its Oasis Cannabis subsidiaries in Nevada and plans to expand to other states. CLS stands for "Cannabis Life Sciences," in recognition of the Company's patented 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.
Stay Connected!
clsholdingsinc.com
Instagram: @clsholdingsusa | Facebook: @CLSHoldingsUSA
Twitter (X): @CLSHoldingsUSA | LinkedIn: @CLS Holdings USA Inc
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 cannabis 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. In February 2019, it was named "Best Dispensary for Pot Pros" by Desert Companion Magazine. In August 2017, Oasis commenced wholesale offerings of cannabis in Nevada with the launch of its City Trees brand of cannabis concentrates and cannabis-infused products.
Stay Connected!
oasiscannabis.com
Instagram: @oasisdispensary | Facebook: @oasisdispensarylv
X: @OasisCannabis | LinkedIn: @oasiscannabis
Founded in 2017, City Trees is a Nevada-based cannabis cultivation, production and distribution company that offers a wide variety of products with consistent results. City Trees products are available in numerous dispensaries throughout the state of Nevada, New Mexico, and New York.
Stay Connected!
citytrees.com
Instagram: @citytreesofficial | Facebook: @citytreesofficial
X: @CityTrees_ | LinkedIn: @citytrees
Forward-Looking Statements
This press release contains certain "forward-looking information" within the meaning of applicable Canadian securities legislation and ''forward-looking statements'' as that term is defined in the Private Securities Litigation Reform Act of 1995 (collectively, the ''forward-looking statements''). These statements relate to, among other things, the expected development of our business and joint ventures, results of operations and financial performance, future liquidity, working capital and capital requirements. The continued spread of COVID-19 could have, and in some cases already has had, an adverse impact on our business, operations and financial results, including through disruptions in our cultivation and processing activities, supply chains and sales channels, and retail dispensary operations as well as a deterioration of general economic conditions including a possible national or global recession. 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. 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.
Contact Information:
Corporate:
Chairman and CEO
Andrew Glashow
888-260-7775
Investor Relations:
investors@clsholdingsinc.com
SOURCE: CLS Holdings USA, Inc.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/205510
FAQ
What was the revenue for CLS Holdings USA Inc. in the fiscal year 2024 third quarter?
What was the net cash flow from operating activities for CLS Holdings USA Inc. for the nine months ending February 29, 2024?
How much did CLS Holdings USA Inc. decrease its total liabilities by compared to the fiscal year end of May 31, 2023?
What was the market capitalization of CLS Holdings USA Inc.?
What did CEO Andrew Glashow discuss regarding industry challenges and legislative outlook?
