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The complaint was filed after the Massachusetts-based dispensary allegedly refused to complete the sale of its business to CLS
$CLSH
$CLSH
LAS VEGAS, NV / ACCESSWIRE / March 9, 2020 / CLS Holdings USA, Inc. (OTCQB:CLSH) (CSE:CLSH) ("CLS" or the ''Company''), a diversified cannabis company operating as Cannabis Life Sciences, $CLSH
announced today that it has filed a complaint against In Good Health, Inc. (IGH), a vertically integrated cannabis business in Brockton, Massachusetts, after it allegedly refused to complete the sale of its business to CLS. $CLSH
The agreement to acquire IGH was originally announced in November 2018, but after IGH allegedly withheld financial documents, refused in-person visits and attempted to change terms of the acquisition documents, $CLSH
CLS filed the complaint claiming IGH breached its obligations to CLS, among other things. $CLSH
As the plaintiff, CLS is seeking the court declare that IGH must comply with the terms of the acquisition documents as well as award it monetary damages.
$CLSH
$CLSH
"We entered into this agreement in good faith and are disappointed that we were unable to reach our intended outcome," said Jeffrey Binder, Co-founder & CEO of CLS. $CLSH
"Despite this pivot, CLS is well positioned to not only scale its business within the Nevada cannabis market, but also to capitalize on other cannabis opportunities."
$CLSH
$CLSH
The Nevada market is projected to be worth nearly $980 million by the end of 2022 according to information provided by Canaccord Genuity's US equity research team. $CLSH
CLS owns the award-winning Oasis Cannabis dispensary, located near the Las Vegas strip, and the rapidly growing City Trees brand, available in 75% of all Nevada dispensaries. $CLSH
In addition, CLS has secured patents in Canada and the U.S., and has patents pending in Europe, for its highly purified cannabinoid extraction technology. $CLSH
The company is also finishing a phased buildout of a 22,000 square-foot cultivation facility that will produce up to 6,600 pounds of flower per year at full capacity. $CLSH
CLS has recently completed its state-of-the-art extraction lab capable of generating $10 million of annual revenue with a gross margin of approximately 50%. $CLSH
This facility allows the company to produce its own product for its City Trees brand, showcase its patented proprietary process along with manufacturing for other brands in the Nevada market. This is a major milestone for the company.
$CLSH
$CLSH
"Moving into calendar year Q2, we plan to double down in Nevada, our home market that attracts over 56 million tourists from around the world, providing us the opportunity to showcase our products and brands on an international stage," said Binder. $CLSH
"With our new facility operational and patents on a superior extract technology, CLS will have both the assets and capital to successfully scale and drive shareholder value." $CLSH
