FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “CLS Holdings USA, Inc. Highlights Q3 Fiscal 2019 Results.”
CLS Holdings USA Inc. (OTCQB: CLSH) (CSE: CLSH), the “Company” or “CLS”, a diversified cannabis company operating as Cannabis Life Sciences, highlighted its financial and operational results for the third quarter of fiscal 2019, ended February 28, 2019.
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.
Throughout 2018, the cannabis market reached milestones and overcame thresholds, in one of the most important years for the industry ever. Notably, Canada’s legalization of cannabis garnered many a headline. In October, Canada fully legalized the use of cannabis for its citizens, becoming the first G-7 nation to ever do so. Since then, most of the G-7 countries have adopted some form of cannabis legislation. France, Germany, Italy, the U.K., and the U.S. have all implemented regulated medical cannabis legalization in certain regions. Now, while the U.S. has not federally legalized recreational or medical cannabis, it has instead given states the right to decide the legality of cannabis for themselves. On the other hand, Japan is currently the only G-7 nation that has strictly enforced rules prohibiting the use of cannabis, and the general cannabis regulatory laws are normally heavily enforced within East and Southeast Asian countries. Yet, countries such as India, Thailand, and South Korea have still dared to explore opportunities associated with cannabis. The widespread legalization of cannabis has made a major global impact, prompting many countries to consider entering into the industry. Primarily, most countries are looking to adopt cannabis for medicinal usage, which is currently fueling the overall market. Furthermore, as the U.S. and Canadian recreational markets continue to mature, the recreational market is expected to create a shift in the market. Regardless, the two sectors continue to grow annually, further driving consumer spending each year. According to data compiled by ArcView Market Research, in partnership with BDS Analytics, worldwide consumer spending on legal cannabis was an estimated USD 12.2 Billion in 2018. By 2022, the research suggests that worldwide spending is expected to reach USD 31.3 Billion, registering a CAGR of 26.7% from 2017 to 2022.
The expansion of the cannabis industry has led many new companies to enter into the market space. A handful small-to-mid-cap companies remain within their local respective districts, but larger players have already expanded their operations internationally. Moving forward, analysts project that the industry is positioned to exponentially grow, pending on mergers and acquisitions between large and small companies. For instance, large-cap companies have acquired smaller businesses, allowing them to accelerate their overall business or enter into a new demographic region. Predominantly, most cannabis-based businesses are located in Canada, however, with the proliferation of legalization, companies are moving to acquire others within the U.S. or Latin America. Moreover, larger players are already establishing licensing and distribution agreements overseas, particularly in Europe and Australia. “Companies with unique assets or business models are likely to be more appealing to potential buyers. Different geographies or modes of production are often cited by the buying companies,” said Alan Brochstein, Founding Partner of New Cannabis Ventures, “Consolidation is picking up in the cannabis space, and investors are rewarding the companies that are buying by pushing their stocks up after the deals are announced. This will likely encourage other companies to be me more aggressive in their M&A strategies.”
For more information, please visit: CLS Holdings USA, Inc.
For more corporate news on Patriot One Technologies Inc., check out the Buzz on the Street
About Buzz on the Street: One of FinancialBuzz.com’s latest corporate and financial news shows, covering the latest trending stock market news. Buzz on the Street looks to become a leader in corporate video news dissemination. Buzz on the Street is 100% original content, brought to you by Financial Buzz Media.