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
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
About
EmergingGrowth.com
EmergingGrowth.com is a
leading independent small cap media portal with an extensive
history of providing unparalleled content for the Emerging Growth
markets and companies. Through its evolution, EmergingGrowth.com
found a niche in identifying companies that can be overlooked by
the markets due to, among other reasons, trading price or market
capitalization. We look for strong management, innovation,
strategy, execution, and the overall potential for long- term
growth. Aside from being a trusted resource for the Emerging Growth
info-seekers, we are well known for discovering undervalued
companies and bringing them to the attention of the investment
community. Through our parent Company, we also have the ability to
facilitate road shows to present your products and services to the
most influential investment banks in the space.
All information
contained herein as well as on the EmergingGrowth.com website is
obtained from sources believed to be reliable but not guaranteed to
be accurate or all-inclusive. All material is for informational
purposes only, is only the opinion of EmergingGrowth.com and should
not be construed as an offer or solicitation to buy or sell
securities. The information includes certain forward-looking
statements, which may be affected by unforeseen circumstances and /
or certain risks. This report is not without
bias. EmergingGrowth.com has motivation by means of either
self-marketing or EmergingGrowth.com has been compensated by or for
a company or companies discussed in this article.
EmergingGrowth.com has been compensated twenty-nine thousand
dollars in consideration for its work with CLS Holdings USA, Inc.
through the date this was published. EmergingGrowth.com may or may
not receive additional compensation and full details about which
can be found in our full disclosure, which can be found
here,
https://emerginggrowth.com/2574-68272/. You can easily
loose
money investing
in highly speculative small cap stocks like the ones mentioned
within. Please consult an investment professional before investing
in anything viewed within. When EmergingGrowth.com is long shares
it will sell those shares. In addition, please make sure you read
and understand the Terms of Use, Privacy Policy and the Disclosure
posted on the EmergingGrowth.com website.
CONTACT:
Company:
EmergingGrowth.com - http://www.EmergingGrowth.com
Contact
Email: info@EmergingGrowth.com
SOURCE:
EmergingGrowth.com
CLS Holdings USA (CSE:CLSH)
Historical Stock Chart
From Nov 2024 to Dec 2024
CLS Holdings USA (CSE:CLSH)
Historical Stock Chart
From Dec 2023 to Dec 2024
