Plus Products Reports Unaudited 2019 Second Quarter Results
Q2 2019 Revenues Increase 125% Over Q2 2018 to $3.6 Million
SAN MATEO, Calif., Aug. 30, 2019 (GLOBE NEWSWIRE) — Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) (the “Company” or “PLUS”), a leading cannabis branded products company in the U.S., today released its unaudited financial and operational results for the three and six months ended June 30, 2019, expressed in U.S. Dollars. These filings are available for review on the Company’s SEDAR profile at www.sedar.com and with the Canadian Securities Exchange (the “CSE”).
Q2 Financial Highlights (amounts are approximate and are stated in U.S. Dollars, unless stated otherwise):
- Revenues climbed to $3.6 million in Q2 2019, representing a 125% year-over-year growth over Q2 2018 revenues of $1.6 million.
- Gross margins have improved to $0.7 million, or 20%, in Q2 2019, compared with $0.2 million, or 14%, in Q2 2018, due to continued operating efficiencies at the Company’s Southern California plant opened in December 2017.
- The Company continues to invest in building talent, market share, infrastructure and financial capacity to support its future growth. Spending on operating expenses was $5.3 million in Q2 2019 up from $1.3 million in Q2 2018 with the hiring of key top management personnel, consulting fees pertaining to future operational and marketing efforts and expenses pertaining to being a public company.
- The Company’s cash balance rose to $34.1 million at June 30, 2019, up from $22.4 million as at December 31, 2018. The Company raised $23.68M from the sale of convertible debentures and as a result of warrant exercises in the first six months of 2019.
- Net working capital was $38 million in Q2 2019 compared to $22.4 million in Q4 2018. Current liabilities as at June 30, 2019 were $1.6 million as compared to $2.2 million at December 31, 2018.
- Shareholder equity reached $26.2 million at June 30, 2019, up from $25.7 million at December 31, 2018.
Q2 Operational Update:
- Launched PLUS Mints, the Company’s second product line in California
- Launched new “Mango CBD Relief” product and retired its previous “CBD Relief” product as part of a coordinated launch campaign with retailers
- Announced expansion into Nevada through a definitive agreement to partner with TapRoot Holdings, Inc., a vertically integrated cannabis company operating cultivation and manufacturing facilities. The Company expects to market its top selling gummies in Nevada dispensaries in the second half of 2019.
- Appointed Marc Seguin, former president and CMO of Popchips, as Chief Revenue Officer, and Jon Paul, a veteran senior corporate finance executive and certified public accountant, as Chief Financial Officer
- Acquired an option to purchase California-based Emerald Bay Wellness LLC, one of the Company’s largest suppliers of cannabis oil
- Upgraded to OTCQX® Best Market from the OTCQB® Venture Market
Our high product standards, growing brand recognition and the launch of our new line of mints drove strong demand for our products this quarter, cementing our position as a top selling cannabis brand in California. For the 5th consecutive quarter, PLUS “Uplift” was the #1 best-selling cannabis product in California in dollars sold, according to data from BDS Analytics.
Jake Heimark, co-founder & Chief Executive Officer of the Company
We also expanded our management team by appointing Jon Paul, a veteran senior corporate finance executive and certified public accountant, as Chief Financial Officer, and Marc Seguin, former president and CMO of Popchips, as Chief Revenue Officer, to lead our sales strategy. Mr. Seguin is one of the first executives to leave the food industry for a non-hemp, cannabis touching company and we are proud to be attracting such high calibre talent to the Company as we lay the framework for continued growth.
“Looking ahead to the second half of 2019, we are implementing several initiatives to drive our strategic growth plan, including ramping distribution of our new PLUS Mints line into more dispensaries in California, initiating sales of our gummies in Nevada supported by a comprehensive sales and marketing campaign in both states, and launching new SKUs.
“Beyond these initiatives, the Company is actively exploring entry into additional markets beyond California and Nevada. We see this as a key growth lever as we work to build a national brand, and are confident in our ability bring the winning formula we have developed in California to new markets,” concluded Mr. Heimark.
For further information, please refer to summary of unaudited financial information at the end of this press release as well as the Company’s unaudited financial statements along with the related MD&A (Management Discussion and Analysis) filed under the Company’s profile at www.sedar.com and with the CSE.
PLUS Products is a California edibles company focused on using nature to bring balance to consumers lives. PLUS’s mission is to make cannabis safe and approachable – that begins with high-quality products that deliver consistent consumer experiences. The PLUS Gummies and PLUS Mints are manufactured at PLUS’s own factory in Adelanto, CA, with strict internal and external testing to ensure accurate consistent dosage. PLUS is headquartered in San Mateo, CA with 80 employees.
For further information contact:
CEO & Co-founder
Chief of Staff
Adjusted uncompressed weighted average shares outstanding and loss per share.
The Company has additionally determined the adjusted uncompressed weighted average shares outstanding and loss per share, basic and diluted. The Company believes these measures to be representative of loss and comprehensive loss on a per share basis; however, these performance measures have no standardized meaning. As such, there are likely to be differences in the method of computation when compared to similar measures presented by other issuers. Management believes that, in addition to conventional measures prepared in accordance with GAAP, some investors use this information to evaluate the Company’s performance. Accordingly, they are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.