CLS Holdings USA, Inc. announced the development of a new division within its manufacturing arm, City Trees. The new division, Trichome Harvest Company, specializes in toll processing for regional and national cannabis brands licensed in the state of Nevada with a variety of transaction types and negotiable terms. The Company's new extraction facility became operational in April 2020, and has contributed to the growing success of the City Trees brand. In light of the achievements of City Trees in extraction innovation and growing market penetration, which were driven by this investment, the company is expanding the services of this facility to further elevate the concentrate category in the state. Since its rebranding in September 2020, City Trees has continued to build its catalog of award-winning vapes, tinctures, and craft concentrates, and can now be found in approximately 80% of Nevada dispensaries. While the brand will continue to produce innovative products under its own umbrella, including a selection of 5 products scheduled for release in February, the Company has now opened its facility to cultivators seeking ethanol extraction, hydrocarbon extraction, and product formulation services. The company began offering limited toll processing services in 2020 for a variety of well-known Nevada brands, but has now begun the process of formalizing its service offerings under the new moniker in response to the increasing demand for high quality concentrates. Trichome Harvest Company intends to offer buy-back transactions and split-yield transactions with both bulk and prepackaged options, and can customize terms to maximize the benefit for both the Company and its valued partners. As of January 2021, the company had processed approximately 2,000 pounds of plant material and 18,000 grams of crude cannabis oil for third party brands, with an additional 4,000 pounds to be processed under existing agreements and anticipated partnerships. These agreements have also contributed a significant amount of plant material for the Company to extract and label under its own brand, including approximately 4,500 pounds that have already been processed, with an additional 6,500 pounds anticipated. With these agreements in place, the Company expects this division to achieve continued growth and lower operating costs in the coming months.