CLS Holdings is offering for sale a minimum of 1,800,000 units and a maximum of 4,000,000 units at a price of $1.25 per unit. Each unit consists of four shares of common stock and one warrant to purchase common stock at $0.75 per share.
Assuming the company sells the minimum units by January 17, 2018, which date may be extended by up to 60 days in the sole discretion of the company, the common stock and warrants issued at closing will be restricted securities.
Acquisition of Oasis Cannabis
According to the filing, CLSH intends to use the proceeds of the private offering primarily to make certain payments required under its definitive agreement to purchase the membership interests of three companies from Alternative Solutions, LLC, a revenue-producing vertically integrated cannabis business with operations in Las Vegas, Nevada.
The aforementioned definitive agreement to acquire Oasis Cannabis was just announced earlier this week. Founded in 2015, Oasis has established itself as one of the top marijuana retailers in the state of Nevada, offering in-store and delivery service to its customers. Oasis is currently generating approximately $650,000 per month in gross revenue through retail cannabis sales.