CLS
Holdings (CLSH) $1.15 Price Target – MASS Approval for Recreational
License
CLSH – CLS
Holdings (OTCQB:
CLSH) was just issued a price target of $1.15 per share by
Canaccord Genuity, - In Good Health receives Massachusetts State
Approval for Final Recreation License
This could be the
biggest play in the Cannabis space in years. See the full story
on http://www.EmergingGrowth.com
CLSH may
not be at these levels much longer.
See the Press
Release and more on CLS Holdings, Inc. (OTCQB:
CLSH) at EmergingGrowth.com
https://emerginggrowth.com/stock-report/?code=clsh
CLS Holdings
(OTCQB:
CLSH) (CLSH.CN)
is a best of breed stock that combines all of the best attributes
of cannabis stocks into one company.
CLS Holdings
(OTCQB:
CLSH) just announced that In Good Health, a licensed medical
dispensary, which the Company has the exclusive right to acquire in
January 2020, was granted on Friday, September 13, 2019 a final
license for recreational use at its current location in Brockton,
MA.
In Good Health
operates a large medical cannabis dispensary business consisting of
over 25,000 registered patients, delivery to 2,800 patients per
month and maintains an 18,000 square foot grow with capacity to
produce 9,000 pounds of finished flower per year. At today's retail
price of $7,000 per pound this fully built out operation is capable
of generating $60 million in annual revenue and gross profit of $
35 million.
CLS Holdings
(OTCQB:
CLSH) also just received a C $1.50 – USD $1.15price target from
Canaccord Genuity. See their full report here.
CLS Holdings
(OTCQB:
CLSH) just announced record sales of $1.16 million for the
month of August alone. See the full press
release here.
- $50 million acquisition which should
throw off $20 million in EBITDA the first year.
- $10 million in the
Bank
- Strong medical and retail marijuana
franchise in both Massachusetts and Nevada.
- With the advent of recreational
sales in in Massachusetts they are at an inflection point where
sales growth is going to compound higher.
See the full
report on CLS Holdings USA, Inc. on EmergingGrowth.com here.
See more news on
CLS Holdings USA, Inc. on EmergingGrowth.com here.
CLSH's management
team has also fully aggregated one acquisition know
as Oasis
Cannabis. This is one of the top
dispensaries n Las Vegas and one glance at the interior retail
space will tell the story with its clean professional
look.
CLSH Management
also has another acquisition in the pipeline to hit in Q1
2020. The next Brockton Acquisition
called In
Good Health is unique, because the total
purchase price is $50 million in cash, notes and equity, but they
are getting a company that has the potential to throw off $20
million in EBITDA the first year assuming modest
growth.
They also have a
decent balance sheet with $10 million in the bank at FYE 19 and the
past quarterly reports have showed a positive trend that looks like
they are turning the corner to profitability. They also have plans to grow
their operations capacity and have a retail brand known
as City
Trees which is a specially
formulated THC distillate used in vape products, tinctures, and
caplets. This product is gaining
traction in the market and is distributed in 47
dispensaries. They are vertically
integrated and in every way a seed to shelf
company. This means there are so many
chances for cross promotion, which eventually finds its way to the
bottom line.
Many still see
huge opportunity in cannabis but the industry itself has gone
through a massive correction in its price to sales multiples in
just the past 6 months. This means investors are not
as ready to pay for sales as they once were. Leading in the contraction
are the top players like Canopy Growth (NYSE:
CGC), Tilray, Inc. (NASDAQ: TLRY),
and CuraLeaf (OTC Pink:
CURLF) which nearly halved their multiples. The biggest standout was
Cronos Group, Inc. (NASDAQ: CRON)
which went from 255 down to 19. This multiple contraction
means that investors will need to see increasing revenue growth
quarter over quarter to sustain the stock prices of these
companies.
Investment
Summary
The cannabis
sector clearly looks like it has put in a double bottom on a
technical basis so now could be an opportune time to step into the
sector and buy value. The next stage of growth
could very well be mergers and acquisitions, but it's unlikely that
the top brands backed by conglomerates will be creating mega
brands. Those businesses like Tilray,
Inc. (NASDAQ: TLRY),
Cronos Group, Inc. (NASDAQ: CRON),
and Canopy Growth (NYSE:
CGC) will start to work when these large brands start selling
and launching CBD or THC infused products. Mergers an acquisition plays
could also begin to happen in the space and represent big upside
for investors.
The sweet spot in
the sectors seems to be a company that can successfully complete
acquisitions at fantastic valuations while increasing their
revenues and profitability all at once. CLS Holdings USA, Inc.
(OTCQB:
CLSH) is a best of breed stock with all the characteristics an
investor is looking for including a great price. By all metrics the stock
seems extremely undervalued and ready to run. After the acquisition in 2020
revenues are expected to be $50 million.
CLSH may
not be at these levels much longer.
See the Press
Release and more on CLS Holdings, Inc. (OTCQB:
CLSH) at EmergingGrowth.com
https://emerginggrowth.com/stock-report/?code=clsh
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