LAS VEGAS, NV / ACCESSWIRE / January 13, 2021 / CLS Holdings USA, Inc. (OTCQB:CLSH), (CSE:CLSH) (“CLS” or the ‘‘Company”), a diversified cannabis company operating as Cannabis Life Sciences, today announced its operational and financial results for the second quarter of fiscal 2021, ended November 30, 2020. The Company experienced its highest revenue month in this period, setting historic company records for revenue and gross margin. Despite anticipated seasonal slow-down and continued depressed tourism in Nevada, CLS entities in the state maintained high sales volumes with aggressive promotions that effectively served the local community in an economically challenged market.
Key Q2 Financial Accomplishments
Total revenues were $4,907,889 compared to $3,056,431 reported in the same quarter in 2019, representing an increase of over 61%, and a 29.8% increase over the first fiscal quarter of 2021. Gross margin increased to 55% – an increase of 7% over the quarter ended November 30, 2019. CLS manufacturing division, City Trees, achieved a 58% increase in year-over-year quarterly revenue through a successful rebrand, a newly curated product catalog, and reinvigorated sales efforts. Retail division, Oasis Cannabis, continued to see significant in-store, delivery, and curbside traffic that drove a 22.1% increase in the average daily revenue total and a 7.6% year-over-year increase in the total number of customers served. The average transaction total at Oasis Cannabis rose 13.4% year-over-year, from $49.39 in the second quarter of fiscal 2020 to $56.02 in the comparable quarter of fiscal 2021.
CLS entities in Nevada saw remarkable progress across all verticals in the second quarter, starting at the beginning of September with the successful rebrand of its branded product division, City Trees. Converting its packaging to more sustainable materials and refocusing its efforts on producing high quality concentrates and other accessibly priced extraction products, the brand