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Legal Cannabis Sales Show Increased Growth Across North America

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Legal Cannabis Sales Show Increased Growth Across North America

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, August 14, 2018 /PRNewswire/ --

According to a report published by Marijuana Business Daily, year-over-year growth of cannabis retail sales continues, in part thanks to the appearance of new markets and states that have legalized medical and recreational cannabis products. Sales in 2018 are expected to increase by approximately 50% when compared to 2017. The report indicates that sales value is on track to reach USD 8 Billion - USD 10 Billion by the end of this year. Additionally, the report projects that by 2022, annual retail cannabis sales in the United States could cross the USD 20 Billion mark, representing a 200% increase from 2017. Legal cannabis markets currently grow in major states such as California, Nevada, Colorado and Washington amongst others. CLS Holdings USA Inc. (OTC:CLSH), Zynerba Pharmaceuticals Inc. (NASDAQ:ZYNE), Kush Bottles Inc. (OTC:KSHB), Vitality Biopharma Inc. (OTC:VBIO), Aphria Inc. (OTC:APHQF)

Canada has legalized cannabis nationally earlier this June and the U.S. is moving gradually towards legalization as well. Earlier this year, the State of California has legalized cannabis for recreational use. Furthermore, Canada's new laws are expected to create an innovative business environment, which has been impossible under the previous laws. A report by Deloitte indicates that Canadians are expected to spend as much as USD 7.17 Billion on cannabis products in 2019. "Canada is in a unique position as the first G7 country on the cusp of legalizing recreational cannabis," said Mark Whitmore, Vice Chair and Global Leader Deloitte Private. "The move to legalize recreational cannabis has sparked a wave of innovation and entrepreneurship, similar to Canada's technology sector, which will create jobs for Canadians, new opportunities for businesses and revenues for governments."

CLS Holdings USA Inc. (OTCQB:CLSH) a diversified cannabis company operating as Cannabis Life Sciences and an integrated cannabis producer and retailer in Nevada through its Oasis Cannabis companies, just announced breaking news this morning that, "the issuance of the following statement to CLS partners, shareholders and other stakeholders from its Chairman and Chief Executive Officer, Jeff Binder:

"I reach out to all members of the CLS family today with gratitude, pride and excitement. Gratitude and pride for the dedication and support of our employees, partners and shareholders in our accomplishments to date, and great excitement for the value I see for us in the path ahead. It's been an extremely busy and productive past few months for our CLS team and we believe we are now in a great position to build long-term shareholder value.

Over the past 45 days, we have closed on two oversubscribed funding rounds. A Canadian round of CAN$13.0 million and a U.S. round of $5.75 million. We are encouraged that our financial backers share the excitement and vision we have for CLS. Navy Capital, one of our lead funds, has a vast network of relationships in the cannabis industry and is extremely interested in the CLS patented extraction and processing technology. We look forward to the added value that Navy Capital brings to CLS. It is a terrific corporate development to have an additional partner, of Navy Capital's stature, and we are excited by the expertise they bring to CLS. We now have the funds in place to complete the build out of our Las Vegas cultivation and production facility. In addition, CLS will utilize a portion of the proceeds to update its existing Oasis Cannabis dispensary location and improve its signage. We are pleased to welcome Frank Tarantino as our Chief Financial Officer, at a key time with our next phase in organic growth and acquisitions. Mr. Tarantino brings big four public accounting and private and public company management and financial expertise, which will be extremely beneficial in leading our growth.

With our successful closing of the Oasis Cannabis acquisition, CLS is now active in the legalized cannabis market in Las Vegas, NV. Oasis Cannabis is a fully integrated cannabis operation generating $850,000 in gross monthly revenue. Since 2017, Oasis has been involved in growing, extraction, conversion, processing and operating a dispensary. Due to increased demand and the additional capital that was just raised, CLS plans to triple the grow production capacity over the remainder of 2018 and in to 2019. Oasis's City Trees wholesale product line recently more than doubled its number of product SKUs offered to retail dispensary customers, and now covers a variety of concentrates, vape pens, and capsules, and tinctures including high CBD versions. The City Trees product line is now being sold in over 20 dispensaries in the Las Vegas and Reno markets. As we add new locations and expand our product manufacturing and cultivation facilities there will be more jobs created and additional opportunities for our existing team to advance in their careers. While our entrance and success in Nevada is key for the company, we are not satisfied with resting on these milestones. We continue to explore additional opportunities for expansion in different states.

Our recently awarded non-provisional U.S. utility patent for cannabidiol extraction and conversion process by the United States Patent and Trademark Office is a very significant milestone. The patent is directed to a process for the extraction of cannabidiols from any variety of cannabis plants. The extraction process includes a sizing unit wherein raw cannabis plant material is reduced to a uniform size, and a blending unit wherein an extraction solvent is blended together with the cannabis plant material to form an initial extract. The conversion process, wherein the processed extract is combined and processed with an acidic component, involves a separator unit in which solvent is added and a separator organic effluent is obtained. We believe our strong intellectual property differentiates us from many of the operators out there. We will seek to license our proprietary extraction and conversion methodology to other operators to be able to monetize it and help build long-term shareholder value. I would personally like to thank all of our hardworking and dedicated CLS and Oasis Cannabis employees. I would also like to thank our financial supporters and shareholders for their support and enthusiasm of our strategy and vision. We look forward to sharing our continued progress as we look to expand to additional legalized states and exploit our patent-protected extraction and conversion process."

About Oasis Cannabis (http://oasiscannabis.com) - Oasis Cannabis has operated a cannabis dispensary in the Las Vegas market since dispensaries first opened in Nevada in 2015 and has been recognized as one of the top marijuana retailers in the state. Its location within walking distance to the Las Vegas Strip and Downtown Las Vegas in combination with its delivery service to residents allows it to efficiently serve both locals and tourists in the Las Vegas area. The company recently commenced wholesale offerings of cannabis in Nevada with the launch of its City Trees brand of cannabis concentrates and cannabis-infused products in August 2017. An expansion of its cultivation and production facility is currently underway and is expected to be completed during the second half of 2018.

About CLS Holdings USA, Inc. - CLS Holdings USA, Inc. (CLSH) is a diversified cannabis company that, subject to receipt of certain anticipated license approvals, acts as an integrated cannabis producer and retailer in Nevada and plans to expand to other states. CLS stands for "Cannabis Life Sciences," in recognition of the Company's patented method of extracting various cannabinoids from the marijuana plant and converting them into products with a higher level of quality and consistency. The Company's business model includes licensing operations, processing operations, processing facilities, sale of products, brand creation and consulting services. For additional information, please visit: http://www.clsholdingsinc.com ."

Zynerba Pharmaceuticals Inc. (NASDAQ:ZYNE) is the leader in pharmaceutically-produced transdermal cannabinoid therapies for rare and near-rare neuropsychiatric disorders. Earlier this month, the Company reported financial results for the second quarter ended June 30th, 2018 and provided an overview of recent operational highlights. The Company initiated and is currently enrolling patients in CONNECT-FX (Clinical study of Cannabidiol (CBD) in Children and Adolescents with Fragile X), a pivotal, multi-national, randomized, double-blind, placebo-controlled study evaluating the efficacy and safety of ZYN002 in three to 17-year old FXS patients with full mutation of the FMR1 gene. The study will enroll approximately 200 male and female patients from approximately 20 clinical sites in the U.S., Australia, and New Zealand. The primary endpoint is the change from baseline to the end of the treatment period in the Aberrant Behavior Checklist-Community FXS Specific (ABC-CFXS) Social Avoidance subscale.

Kush Bottles Inc. (OTCQB:KSHB) is a dynamic sales platform that provides unique products and services for both businesses and consumers in the cannabis industry including CBD manufacturers. Recently, the Company announced that it has launched Kush Energy, a new division focused on supplying the cannabis industry with tested, high-quality solvents and hydrocarbons, which are essential in the extraction process for the production of products including oils, edibles and waxes. The Company acquired Summit Innovations in May of 2018, and now, with the launch of Kush Energy, has successfully completed a full integration. Kush Energy will focus on servicing the rapidly growing concentrates category, which in many primary cannabis markets now account for nearly half of all sales. Kush Energy will operate eight hazmat compliant distribution facilities across the country, including a new location in Humboldt County in Northern California. The new division will also work closely with cannabis manufacturers and extraction facilities to ensure cleanliness, product quality, reliable supply, safety, and compliance during the extraction process.

Vitality Biopharma Inc. (OTCQB:VBIO) is dedicated to unlocking the power of cannabinoids for the treatment of serious neurological and inflammatory disorders. Recently, the Company announced that it has received approval from both the U.S. Drug Enforcement Administration (DEA) and the State of California Research Advisory Panel which permits the Company to continue development of its novel cannabinoid pharmaceutical prodrugs. Vitality initially worked with the DEA to ensure adequate on-site measures are in place to prevent diversion of Schedule I controlled substances, the most regulated tier of controlled substances in the US. The Company's lead compound VBX-100 is a proprietary prodrug of THC that is targeted to the gastrointestinal tract, meaning it reduces or avoids entry of THC into the bloodstream or brain.

Aphria Inc. (OTCQB:APHQF) is a leading global cannabis company driven by an unrelenting commitment to its people, product quality and innovation. Recently, the Company announced that it has signed a Manufacturer's Representative agreement with We Grow BC Ltd., a Vancouver-based licensed producer of premium cannabis, to become We Grow's exclusive sales representative across Canada. The Agreement adds a second brand of premium B.C.-bud to be sold alongside Aphria's expanding portfolio of adult-use brands, which includes celebrated B.C.-bud from Broken Coast Cannabis, through the Company's coast-to-coast sales distribution network. Aphria's sales team is supported by Great North Distributors, a subsidiary of Southern Glazer's Wine & Spirits, which was previously announced as Aphria's exclusive cannabis representative in Canada, providing the Company with 100% coverage of all cannabis retailers, whether provincially or privately operated, from the first day of legal adult-use sales.

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