CLS Holdings USA Inc. (OTCMKTS:CLSH) Stock In Focus After Latest Development

CLS Holdings USA Inc. (OTCMKTS:CLSH) dropped 6%, but up 16% in a week. The company, which operates as Cannabis Life Sciences, has announced operational and financial results for January 2022 for its Nevada subsidiaries.

Market Stats

On Tuesday, CLSH stock fell 5.92% to $0.0826 with more than 19K shares, compared to its average volume of 73K shares. The stock moved within a range of $0.0753 – 0.0837 after opening trading at $0.0794.      

CLS Holdings USA, Inc. Announces January Results with Continued Success

The company reported net revenue of $1.75 million from the subsidiaries with a 55% gross margin, keeping CLS’ target of attaining a gross margin of more than 50%. In addition, monthly net sales growth of 127% YoY and 191% over 2020 for the firm’s wholesale branded business at City Trees continues to show massive growth.

According to BDS Analytics, City Trees has maintained its status as the top-selling tincture brand in Nevada. In contrast, City Trees has been the number one brand in the overall concentrate category in terms of units sold in the state for December 2021, with over 44,000 units sold. Also, BDS Analytics indicates that City Trees sold more than $1 million concentrates in December last year at the retail level. So in the coming weeks, investors should keep an eye on CLSH. 

Key Quote

“2022 is off to a great start,” noted Company President & COO Andrew Glashow. “We are committed to reinvesting in our growth and made a number of significant hires to bolster our strong core team. Additionally, we are investing in our facility to ramp up greater production to keep up with our current sales trends. We are keenly aware of the opportunities in front of us and truly believe we are well positioned to be one of the predominant cannabis companies in the state of Nevada as consolidation continues and the cream rises to the top.”

Traders Corner

CLSH stock is trading below the 20-Day and 50-Day Moving averages of $0.0876 and $0.1449 respectively. The stock is trading in neutral zone with the RSI at 45.