16:24:48 EDT Mon 18 Oct 2021
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CLS Holdings USA Inc
Symbol CLSH
Shares Issued 125,174,027
Close 2021-01-26 C$ 0.20
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CLS Holdings develops toll processing division

2021-01-26 10:20 ET - News Release

Mr. Andrew Glashow reports


CLS Holdings USA Inc. is developing 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 state-of-the-art 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 catalogue of award-winning vapes, tinctures and craft concentrates, and can now be found in approximately 80 per cent of Nevada dispensaries. While the brand will continue to produce innovative products under its own umbrella, including a selection of five 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.

"We have a beautiful, clean, state-of-the-art facility here in Las Vegas, and we want to share it with trusted partners to raise the bar for concentrates and vape products in the state," said company president and chief operating officer Andrew Glashow. "We hold ourselves to the highest standards and are always looking to innovate, and we encourage other cultivators and producers to take a look at our facility to see how they can do the same." The company also recently received a statement of no deficiency from its latest state inspection of its cultivation facility in August, 2020.

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.

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.

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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