Shares of CLS Holdings USA Inc. (OTCMKTS:CLSH) are trading higher in the wake of the company announcing that it has received a notice of allowance from the U.S. patent office for its proprietary extraction and conversion methodology.
The proprietary extraction process differs from others that typically use ethanol, supercritical CO2 or butane. The resulting finished product is cleaner and provides for more Delta 9 THC. The Company intends to deploy its proprietary extraction and conversion technology upon completion of its pending acquisition of Oasis Cannabis. Additionally, the Company will look to license its patented extraction process.
Jeff Binder, Chairman and CEO of CLS, stated, “Extraction is a very important and valuable process as the quality and value of the finished product is largely impacted by the quality of its extraction. We are focused on increasing yields and the quality of yields and feel our process gives us a major leg up relative to others in the industry. We have dedicated considerable amounts of resources to this endeavor and to receive this allowance from the US patent office is a milestone for the company. I am truly appreciative of all the efforts and contributions of our team and wish to personally thank our chief scientist and co-founder, Ray Keller.”
A push by the company to strengthen its cannabis production capabilities appears to have strengthened investors’ confidence on its long-term prospects. The stock is currently trading in an uptrend after gaining more than 50% in response to recent positive news.
For the full year, CLS Holdings USA Inc. (OTCMKTS:CLSH) is up by more than 80%. Given the strength of the upward momentum, the stock finished the year off the recent high of $0.90. Shares are currently trading in tight $0.70 to $0.75 range. Lower immediate support looks to be the $0.65 mark. CLS Holdings USA Inc. (OTCMKTS:CLSH) should continue to attract attention as it affirms plans to double its cannabis growth production capacity.
Recent Oasis Cannabis Acquisition News
Oasis is an exciting acquisition target as it is set to expand CLS Holdings USA Inc. (OTCMKTS:CLSH) footprint in the business of growing, extracting and processing cannabis products for retail. The company comes into the deal with a growing, conversion and extraction facility that produced $150,000 in gross revenue last month.
The acquisition should be of great benefit to CLS Holdings on the fact that Oasis already generates revenues and has permits to operate dispensaries and deliver products to end consumers.
The parent company also stands to use its proprietary extraction methods to increase the yields from Oasis grow and cultivation businesses. CLSH may also scale Oasis retail business by opening franchises throughout Nevada as well as in other states that have approved marijuana sale.
In addition, the company’s cash balance destined to receive a significant boost upon the closing of the definitive acquisition agreement given that Oasis dispensary serves over 300 customers on a daily basis.
“Since we began this process to acquire Oasis Cannabis a couple of months ago, we have witnessed firsthand its growth and traction in visitors and revenue. We are very pleased with the trends at its grow and retail dispensary and are enthusiastic to move forward to an anticipated closing in the first quarter of 2018,” said CEO, Jeff Binder.
The appointment of, David Lamadrid, as the President and Chief Financial Officer appears to have strengthened investor confidence in CLS Holdings USA Inc. (OTCMKTS:CLSH). He joins the company with vast experience in management and finance required to lead the firm through the next phase of growth.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions. All information, including any data, is provided without any guarantees of accuracy.
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