CLS Holdings USA, Inc. Announces 50/50 Joint Venture with Ranson Shepherd to Manufacture Pre-Rolls
September 28, 2021 at 07:17 am EDT
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CLS Holdings USA, Inc. announced a 50/50 joint venture with RANSON SHEPHERD to manufacture pre-rolls, a category that represented approximately 11% of overall cannabis sales in Nevada in 2020. This announcement comes on the heels of the company's most successful fiscal year, during which the Company achieved multiple record-setting months at both the retail and wholesale subsidiary level. CLS Joint Venture Highlights; CLS and Mr. Shepherd will lend their well-respected reputations to a new line of in- demand products. The joint venture anticipates producing 200,000+ pre-rolls per month after a start-up period. The joint venture will utilize the Company's existing 22,500 sq ft manufacturing facility creating economies of scale. The joint venture plans to create Its own pre-rolls as well as manufacture pre-rolls for other brands under exclusive licensing agreements. The joint venture is expected to provide a structural cost advantage and become one of the lowest cost providers based on raw material procurement. The joint venture anticipates achieving gross margins in-line with CLS' standalone gross margins and to become accretive to CLS. The joint venture believes it will create additional jobs and benefits to the community.
CLS Holdings USA, Inc. is a cannabis company that acts as an integrated cannabis producer and retailer through its Oasis Cannabis subsidiaries in Nevada. The Company's brands include City Trees and Oasis Cannabis. It owns 100% of Alternative Solutions, LLC, a holding company that owns three separate entities with licenses to operate cannabis businesses within the State of Nevada: Serenity Wellness Center, LLC doing business as (dba) Oasis Cannabis (Oasis); Serenity Wellness Growers, LLC dba City Trees Fresh Cannabis Cultivation Wholesale; and Serenity Wellness Products, LLC dba City Trees Fresh Cannabis Production Wholesale. Oasis operates a retail marijuana dispensary nearer to the Las Vegas Strip. The Company's other subsidiaries operate a small-scale cultivation facility, as well as a product manufacturing facility and a wholesale distribution operation in North Las Vegas. Oasis is a 5,000 square foot retail location offering personalized delivery, pick-up, and in-store experiences.