A Miami-based cannabis company just 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, according to the release. Shares of CLS Holdings USA Inc. (OTCQB:CLSH) (CSE:CLSH) popped on the news.
CLS Holdings USA Inc. 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. The company generates the majority of its revenues and corresponding accounts receivable from the sale of cannabis, and cannabis related products.
Traders were bullish on the news as shares quickly shot up to $0.145/share (+16.00%) following the announcement. This move is a breath of fresh air for long-term shareholders that have been riding the multi-month downtrend.
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