Entering the Rapidly Evolving Nevada Market: Currently Generates $650,000 of Revenue per Month.
LAS VEGAS, NV / ACCESSWIRE / December 4, 2017 / CLS Holdings USA, Inc. (OTCQB: CLSH) “CLS,” a development stage diversified cannabis company operating as Cannabis Life Science, announced today an update to its previously announced non-binding Letter of Intent (“LOI”) to acquire a fully integrated cannabis operation in Nevada. Las Vegas-based Oasis Cannabis’ operations include a grow, extraction and conversion processing and a retail dispensary.
CLS has now executed a definitive agreement to acquire the Oasis Cannabis companies. A non-refundable cash deposit has been paid by CLS. The closing of the transaction, which is subject to the satisfaction of conditions, is expected in the first quarter of 2018.
Jeff Binder, Chairman of CLS, stated, “The acquisition of Oasis provides an exceptional opportunity for CLS to enter the rapidly growing and evolving Las Vegas cannabis market. Our plans are to pursue an aggressive expansion plan that includes utilizing our proprietary processing and conversion technique along with cultivation. We believe this transaction will position CLS to emerge as a significant cannabis operation and achieve profitability in 2018.”
Oasis Cannabis is a fully permitted and operational dispensary currently generating $650,000 a month in gross dispensary revenue. CLS anticipates revenues to increase based on a number of planned initiatives, which include augmenting the current conversion and extraction methods used for harvesting, thus bolstering yields and increasing the IRR per grow. CLS plans to increase the size of the fully integrated operation by increasing wholesale distribution from the existing grow and the ability to deliver medical cannabis to customers directly. On a combined basis, CLS and Oasis will boast a top tier management team with significant experience in the cannabis industry. “It’s an exciting time to be in the cannabis industry in Las Vegas, especially considering the recently reported sales of $30 million from dispensaries in Las Vegas in the month of August,” stated Jeff Binder, Chairman of CLS.
Ben Sillitoe, CEO and Co-Founder of Oasis, said, “We are honored by the recognition we have been shown by CLS with its agreement to purchase our company and the retention of its leadership, as I will become the Chief Operating Officer of CLS. I am personally very excited about the growth opportunities presented by entering the public capital markets.”