CLS Holdings USA Inc (OTCMKTS:CLSH) Stock Moves Up After Announcing Joint Venture with Ranson Shepherd

CLS Holdings USA Inc (OTCMKTS:CLSH) stock ended higher after the JV news. The stock has been trading within a narrow range over the past weeks.

Market Action

On Wednesday, CLSH closed up by 5.20% to $0.1315. More than 65k shares have exchanged hands, below its average volume of 99K shares. The stock opened at $0.1250 and moved in a range of $0.1250 – 0.1450.

CLS Holdings USA, Inc. Announces Joint Venture with Ranson Shepherd to Manufacture Pre-Rolls

Here are the highlights:

CLS Holdings USA announced a 50/50 joint venture with RANSON SHEPHERD to manufacture pre-rolls, a category that represented approximately 11% of overall cannabis sales in Nevada in 2020. This announcement comes on the heels of the Company’s most successful fiscal year, during which the Company achieved multiple record-setting months at both the retail and wholesale subsidiary level.

CLS and Mr. Shepherd will lend their well-respected reputations to a new line of in-demand products

The joint venture anticipates producing 200,000+ pre-rolls per month after a start-up period

 The current average wholesale price per pre-roll in Nevada is $3.00 + per unit.

The joint venture will utilize the Company’s existing 22,500 sq ft manufacturing facility creating economies of scale.

Key Quote:

“We are excited to add yet another notch to our growing belt of high quality, reliable products that has helped the Company become more successful than ever,” said Company President and COO Andrew Glashow. “We anticipate to continue riding this upward wave of success with our latest collaboration. Ranson has established himself as a key player in Nevada’s cannabis industry in a short amount of time and we could not be more excited to partner with him on one of the market’s most sought after items.”

Trader Notes:

CLSH stock is trading well below its 50-day and 20-Day SMA stands at $0.15 and $0.14 respectively -signaling a strong short term weakness. So far this year, the stock has fallen over 11%. Will the stock rebound?