Mr. Jeff Binder reports

CLS HOLDINGS USA, INC. REPORTS RECORD MARCH FINANCIAL RESULTS AS NEVADA TOURISM BEGINS RECOVERY

CLS Holdings USA Inc. has released the financial and operational results for its Nevada wholly owned subsidiaries for the month of March, 2021, with net revenues of over $2-million for the first time in the company's history and a gross margin of 48 per cent. These results represent the highest single-month revenue total to date, with marked increases in revenue at both the retail and wholesale level. This total represents a 92-per-cent increase in revenue over March, 2020, and an 89.4-per-cent increase in revenue over March, 2019. The company achieved this historic increase in net revenue while also improving gross margin, which was 45 per cent for March, 2020, and 37 per cent for March, 2019.

CLS Nevada March, 2021, financial and operational highlights:

• Retail subsidiary Oasis Cannabis achieved a 100.3-per-cent increase in net revenue year over year alongside a 51.2-per-cent increase in the number of transactions and a 31.2-per-cent increase in average order size;
• Branded wholesale division City Trees recorded a 70.5-per-cent increase in year-over-year net revenue and its highest volume of wholesale orders to date;
• The number of orders placed through City Trees increased by 150 per cent compared with March, 2020.

The company's Nevada retail and wholesale subsidiaries both achieved their highest revenue month to date in March, 2021. At the company's dispensary, Oasis Cannabis, net revenue increased by more than 100 per cent year over year. While the economic effects of COVID-19 impacted the company more directly in March, 2020, and contributed to notably lower revenue for the month, results in March, 2021, outpaced the store's trajectory without this factor. This achievement was driven by a 51.2-per-cent increase in the number of transactions processed and a 31.2-per-cent increase in average order size as new modes of service introduced in 2020, including curbside and expanded delivery, became more efficient. Construction also began on a new express in-store pickup window, slated to become fully operational in April to increase the flow of traffic through the dispensary. Oasis achieved both its highest and second-highest total sales days in March, reaching over $90,358 and $90,215, respectively.

"Vegas is beginning to feel like Vegas again," noted company president and chief operating officer Andrew Glashow. "We are still operating under many of the constraints mandated last year, but our team has become more efficient with these processes, allowing us to dramatically increase revenue in spite of these restrictions. Seeing that we can perform at this level given these limitations leaves us beyond excited to see what we can accomplish when we're able to return to 24-hour service and higher in-store capacity. Our team has a lot to be proud of."

In its advertising for the dispensary, Oasis has begun releasing a series of employee features, including new billboard designs, social media highlights, interviews with team members featured on the store's website and a series of videos. This campaign, encompassed by the message "Real People, Real Cannabis," was created to show genuine appreciation for the company's dedicated team members who persevered through the previous year of challenges.

At the company's wholesale division, City Trees, the brand also achieved its highest revenue month, with a 150-per-cent increase in the number of orders compared with March, 2020, and a 23.2-per-cent increase in orders over February, 2021. The total revenue for the brand in March, 2021, was $502,140. Not included in the brand's March revenue was a backlog of additional orders to be delivered in April driven by rapidly increasing demand for the brand's products. With five new product formulations introduced in February, retail sell-through of these products has increased. Along with new products in its vape line, City Trees released a new limited-edition live resin concentrate, Glow, to mark Earth Hour -- an annual event created to drive awareness of environmental issues facing the planet. In total, Oasis Cannabis sold 3,664 units of City Trees live resin concentrate in March, beating the dispensary's previous record number of live resin concentrate sold in one month by 56.6 per cent. As Las Vegas begins to return to prepandemic levels of tourism and activity, the company is confident that its foothold among local consumers with its brands and retail platform will maintain these high levels of performance going forward.

About CLS Holdings USA Inc.

CLS Holdings USA 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.

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 marijuana 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, the company commenced wholesale offerings of cannabis in Nevada with the launch of its City Trees brand of cannabis concentrates and cannabis-infused products.

Founded in 2017, City Trees is a Nevada-based cannabis cultivation, production and distribution company. Offering a wide variety of products with consistent results, City Trees products are available in numerous dispensaries throughout the state of Nevada.

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