CLS Holdings USA Inc (OTCMKTS:CLSH) has signed a $3 million equity investment agreement with Navy Capital Green International, Ltd. The leading cannabis company, which operates under the name Cannabis Life Sciences signed the agreement through its Oasis Cannabis subsidiary.
Terms of the agreement
According to the terms of the agreement, Navy Capital, or any other selected party may invest in CLS Holdings and additional $2 million, with a 15% overallotment. Navy Capital can invest a maximum of $5,750,000.00 by August 15, 2018.
Navy Capital has a well-connected network within the cannabis sector. It has been eying having access to the CLS patented extraction and processing technology.
CLS to finance construction of its Las Vegas cultivation and production facility
CLS intended to use the new financial injection to complete the construction of its Las Vegas cultivation and production facility. Additionally, it will use part of the money to renovate its Oasis Cannabis dispensary location and improve its signage.
In a statement, Navy Capital Managing Partner and Chief Investment Officer John Kaden said they chose CLS Holdings because it has a premier vertically integrated and well-established business in Nevada. He added that the company has a lot of opportunities in major cities across the United States. Using its cutting edge technology as the foundation of growth, CLS is quickly growing into one of the leading cannabis companies in the U.S.
In other news, CLS Holdings recently issued a statement highlighting on the first year since cannabis use was legalized in Nevada. The company first launched its operations in Nevada. According to data from the Nevada Department of Taxation cannabis accounted for around 50% of the medical and adult-use cannabis purchases made by consumers in the state. They are followed by concentrates and infused edibles and 25% and 13% respectively.
Out of the total sales made by Oasis Cannabis, 67% were from packaged marijuana flower/bud and pre-rolled joints. They are followed by concentrates and infused edibles at 20% and 9% respectively. While commenting on the report, Oasis Cannabis co-founder Ben Sillitoe said many of the tourist customers prefer convenience items like pre-rolled joints and disposable vapor pens.