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PLUS Extends Lead in California Edibles Market with 3 of Top 5 Cannabis Products in Q4
Q4 2018 Retail Sales Data Shows Continued Market Leadership
SAN MATEO, CA -- February 4, 2019
Plus Products Inc. (CSE:PLUS) (OTCQB:PLPRF) (the “Company” or “PLUS™”) today announced that, according to BDS Analytics (bdsanalytics.com) retail sales data, during Q4 2018, PLUS again secured its position as the #1 best-selling cannabis-infused edibles brand in California and saw its lead over the #2 brand widen over the prior quarter.
According to BDS Analytics, during Q4, PLUS also had 3 of the best-selling branded products in all product categories including flower, vaporizers, edibles and topicals. PLUS “Uplift” and PLUS “Restore” remained the #1 and #2 best-selling SKUs. PLUS “CBD Relief” was the #5 best-selling SKU, and the top CBD-only SKU according to BDS analytics.
“Our objective at PLUS is to build the world’s strongest cannabis brand. When we became the top edibles brand in the largest cannabis market (California) in the third quarter of 2018, our team felt that it was only one more step in a much larger journey,” said CEO, Jake Heimark. “We are proud that we have not only maintained, but continued to grow our position as the market leader in Q4. We hope to continue this momentum into 2019 not only in California, but in other jurisdictions as well.”
About Plus Products
The Company is a branded products manufacturer based in California. Its products consist of cannabis-infused edibles, which it sells to both the regulated medicinal and adult-use recreational markets. PLUS is currently one of the fastest-growing edible brands in California with several top-selling products.
All products under the PLUS brand are made with high-quality ingredients and produced in the Company’s dedicated 12,000-foot, food-safe cannabis manufacturing facility in Adelanto, California, staffed with chemists and food scientists.
The Company’s mission is to make cannabis safe and approachable — that starts with manufacturing high-quality products delivering consistent experiences.
Plus Products Raises C$25 Million and Includes Gotham Green Partners and Stable Road Capital as Investors
February 28, 2019
Published by NCV Newswire
Plus Products Announces Closing of Previously Announced Private Placement of Unsecured Convertible Note Units
Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) (the “Company” or “Plus Products”) is pleased to announce that it has closed the previously announced best efforts private placement with Canaccord Genuity Corp., as lead agent, together with a syndicate of agents (collectively, the “Agents”), for 25,000 units of the Company (the “Units”) at a price of C$1,000 for gross proceeds of C$25,000,000 (the “Offering”).
Gotham Green Partners and Stable Road Capital were two of the lead investors in the private placement.
We are thrilled to continue to have the opportunity to invest in PLUS. PLUS has built a tremendous brand and the management team is second to none. We look forward to working closely with the company to help them achieve their goals.
Jason Adler, Managing Member of Gotham Green Partners
“We are thankful for the support we have received from our past investors, and from new investors, as we continue to reach our goal of becoming the strongest cannabis brand in the world by delivering on our mission to make cannabis safe and approachable,” said Jake Heimark, CEO of Plus Products.
Each Unit consists of one unsecured convertible note (each, a “Convertible Note”) accruing interest at 8% per annum, payable semi-annually in arrears until maturity, and 77 subordinate voting share purchase warrants of the Company (each, a “Warrant”). The Convertible Notes have a maturity date of 24 months from the closing date, being February 28, 2019.
Each Convertible Note shall be convertible into subordinate voting shares in the capital of the Company (each, a “Conversion Share”) at a price of $6.50 (the “Conversion Price”) per Conversion Share commencing on the date which is seven months after the closing date.
Each Warrant entitles the holder thereof to acquire one subordinate voting share in the capital of the Company (each, a “Warrant Share”) for an exercise price of $8.00 per Warrant Share for a period of five years following the closing date. If exercised during the first 12 months after the closing date, the underlying shares shall be subject to a 365-day contractual hold from the closing date.
The Convertible Notes are unsecured obligations of the Company and rank pari passu in right of payment of principal and interest with all other Convertible Notes issued under the Offering and all other unsecured indebtedness of the Company.
The Agents received a cash commission on the sale of the Offering of C$1,268,350, plus C$98,750 as agents’ expenses, including legal fees. The Agents also received 100,823 compensation warrants, each carrying the right to purchase one subordinate voting share in the capital of the Company (each, a “Compensation Warrant Share”) at a price of $8.00 per Compensation Warrant Share for a period of two years from the closing date.
The proceeds from the Offering will be used by the Company for working capital and other general corporate purposes.
The Convertible Notes, Warrants and Compensation Warrants issued pursuant to the Offering and any subordinate voting shares in the capital of the Company issued on conversion of the Convertible Notes or exercise of the Warrants or Compensation Warrants are subject to a statutory hold period in Canada of four months and one day following the closing date in accordance with applicable securities laws, which shall expire on June 29, 2019. Additional resale restriction may be applicable under the laws of other jurisdictions, if any.
The securities of the Company have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, the securities of the Company may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Plus Products
The Company is a branded-products manufacturer based in California. Its products consist of cannabis-infused edibles, which it sells to both the regulated medicinal and adult-use recreational markets. PLUSTM is currently one of the fastest-growing edible brands in California with the State’s top-selling products.
The Company’s mission is to make cannabis safe and approachable – that starts with manufacturing high-quality products delivering consistent experiences. All products are produced in the Company’s dedicated food-safe cannabis manufacturing facility in southern California.
Plus Products Reports Preliminary 2018 Unaudited Revenues of US$8.4 Million
GLOBAL Mar 26, 2019
BY ANTHONY VARRELL
Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF), today provides its unaudited revenue estimate for the fiscal period ended December 31, 2018 of US$8.4 million. This unaudited revenue represents substantial growth of 684% when compared to fiscal 2017 revenues of US$1.1 million.
Revenue estimates for the fourth quarter of 2018 was $3.4 million, representing an approximately 32% anticipated increase above the third quarter of 2018 and 776% above the fourth quarter of 2017. The revenue growth was driven by sales of Plus Products’ concentrated brand portfolio of four full-time SKUs and one rotating seasonal.
The Company’s unaudited cash balance climbed to $22.9 million at the end of 2018, up from $0.3 million at the end of 2017 and $11.1 million as of September 30, 2018, prior to the initial public offering in October.
Preliminary unaudited operating expenses rose 67% in the fourth quarter versus the third quarter of 2018 due to professional fees related to the initial public offering, costs incurred on market research and future brand development, and increased wages and shared based compensation expense for management personnel brought on board around the start of the fourth quarter.
According to BDS Analytics, the company’s retail sales in the fourth quarter were $10.53 million, an increase of 39.6% over the third quarter of 2018.
According to retail analytics firm Headset, the PLUS Uplift Sour Watermelon gummy was the top selling branded product of the more than 20,000 products sold across all cannabis categories in California in 2018. According to BDS Analytics, PLUS “Uplift” and PLUS “Restore” remained the #1 and #2 best-selling edible products in California.
Although PLUS had strong growth in 2018, BDS Analytics also found that in 2018 there were 17% less legal sales in California cannabis sales than in 2017 as the California market struggled with licensing challenges, regulatory changes, taxes and new testing, labeling and packaging requirements.
PLUS Uplift was the top branded product of more than 20,000 products sold in California, according to Headset,
“We are proud that in a year where the greater legal California cannabis market shrank and underperformed expectations, PLUS had significant growth in both revenue and market share,” said Jake Heimark, co-founder & CEO of PLUS Products. “When the legal market shrinks in its first year of enforcement, the most likely culprit is an increase in underground market sales as some businesses struggle to figure out how to adapt to the new legal landscape.
We believe regulation is ultimately best for the consumer because it ensures businesses will be held accountable to create safe products that are consistent in quality and dosage. For the legal industry to grow and thrive, regulation needs to be uniform and clear so that businesses of all sizes can adapt, and we hope that in 2019 increased enforcement and regulatory clarity will help drive growth in the legal market and help make cannabis safe and approachable for everyone.”
PLUS supports regulation in the cannabis industry and actively collaborates with regulators. The company recently rolled out child-resistant tins a year ahead of the California deadline, and it participated in the National Cannabis Roundtable with John Boehner as honorary chairman last month.
PLUS is a cannabis branded product manufacturer dedicated to making cannabis safe and approachable. The Company’s annual audited financials will be available prior to April 30, 2019 and consolidated financials for the first quarter will be available prior to May 31, 2019.
The preliminary estimated revenue and other data for the 12 months ended December 31, 2018 set forth above are subject to the completion of the Company’s financial closing procedures and was approved by management on March 20, 2019. The estimated revenue is not audited or reviewed, and no auditors have expressed an opinion or provided any assurance with respect thereto.
The final results of operations could differ materially from these estimates due to financial closing procedures, final adjustments and other developments that may arise between now and the time such audited consolidated financial statements for the year ended December 31, 2018 are issued.
About Plus Products
PLUS Products creates safe and delicious cannabis food products. PLUS’s mission is to make cannabis safe and approachable – that starts with high-quality products that deliver consistent experiences. The gummies are manufactured at PLUS’s own factory in Adelanto, CA, where dosage is tested twice internally and then tested twice again by an independent lab. PLUS is headquartered in San Mateo, CA with 60 employees.
24M shares outstanding??
Here is a chance to get in on the edibles market both for medicinal and recreational use. PLPRF does edibles both in THC and CBD. Most edibles firms only do it in CBD; from which there is no resulting high.
Most of the companies that do edibles are privately held.
It started to trade on OTCQB about December 10th at roughly $3.50 per share. It had been trading on the CSX for a while, and still is. While the company has been in business since 2015, it is so new here that Seeking Alpha and Motley Fool have not heard of it.
Here is a chance to get in on the edibles market both for medicinal and recreational use. PLPRF does edibles both in THC and CBD. Most edibles firms only do it in CBD; from which there is no resulting high.
Most of the companies that do edibles are privately held.
It started to trade on OTCQB about December 10th at roughly $3.50 per share. It had been trading on the CSX for a while, and still is. While the company has been in business since 2015, it is so new here that Seeking Alpha and Motley Fool have not heard of it.
Hi to anyone here, did this just start trading? I read news, impressive. Might take a position.
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