SCHEDULE 13D: Major Shareholder Discloses 9.9% Stake in CLS Holdings USA, Inc. and Recent Share Sale

LEM Investments LLC and Elmer Louis Werner III have disclosed a 9.9% beneficial ownership stake in CLS Holdings USA, Inc., primarily for investment purposes, and reported a recent sale of 750,000 shares.

Summary

• LEM Investments LLC and Elmer Louis Werner III (the "Reporting Persons") have filed a Schedule 13D regarding their beneficial ownership in CLS Holdings USA, Inc.
• The Reporting Persons collectively beneficially own 16,358,109 shares of Common Stock, representing 9.9% of the outstanding shares of CLS Holdings USA, Inc.
• The shares were acquired using working capital and through the conversion of certain convertible notes that LEM Investments LLC had lent to the issuer.
• The stated purpose of the acquisition and holding of these shares is for investment purposes.
• LEM Investments LLC sold 750,000 shares of Common Stock on October 28, 2024, at a price of $0.04 per share in a private transaction to another CLS Holdings USA, Inc. shareholder.

Sentiment

Score: 5

Explanation: Neutral. The filing is a factual disclosure of beneficial ownership and a recent share sale. While a sale by a significant holder could be seen negatively, the stated purpose is investment, and no adverse reasons for the sale are given. It's a standard regulatory update without explicit positive or negative forward-looking statements.

Positives

• The Reporting Persons acquired shares for investment purposes, indicating a belief in the company's long-term potential from a significant shareholder.

Negatives

• LEM Investments LLC sold 750,000 shares of Common Stock at $0.04 per share, which could be interpreted as a partial divestment or profit-taking by a significant shareholder.

Risks

• The sale of a significant block of shares by a major beneficial owner, even in a private transaction, could be perceived as a potential risk by some investors, signaling a reduction in a large holder's stake.

Future Outlook

The filing states that the Reporting Persons acquired the Common Stock for investment purposes and currently have no plans or proposals that would result in any changes to the issuer's business, management, or corporate structure. However, they explicitly state that they may, at any time and from time to time, review or reconsider their position and/or change their purpose and/or formulate plans or proposals with respect thereto.

Management Comments

• The filing indicates that the Reporting Persons' acquisition of shares is for 'investment purposes' and that they currently have no plans or proposals to effect changes in the issuer's business or corporate structure.

Industry Context

This Schedule 13D filing is a standard regulatory disclosure for significant beneficial ownership changes. It provides transparency regarding a substantial investment in CLS Holdings USA, Inc. While the document itself does not detail the issuer's specific industry, the nature of the filing is common across all publicly traded sectors, indicating a significant investor's position and recent activity.

Comparison to Industry Standards

• This document is a regulatory filing disclosing beneficial ownership and a specific transaction. It does not contain financial performance metrics, operational data, or strategic updates that would allow for a direct comparison to industry standards, peer companies, or specific projects within any particular sector.

Stakeholder Impact

• Shareholders: The disclosure of a significant beneficial ownership stake and a recent share sale by a major investor provides transparency regarding the ownership structure and potential investor sentiment. The sale of shares at $0.04 could influence market perception of the stock's value.

Next Steps

• The Reporting Persons may, at any time, review or reconsider their position and/or change their purpose and/or formulate plans or proposals with respect to their investment in CLS Holdings USA, Inc.

Key Dates

Keywords

CLS Holdings USA Inc, LEM Investments LLC, Elmer Louis Werner III, Schedule 13D, Beneficial Ownership, Common Stock, Investment, Share Sale, Convertible Notes