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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):
Q2 Operational Update:
“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,” said Jake Heimark, co-founder & Chief Executive Officer of the Company. “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.
“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
The CSE does not accept responsibility for the adequacy or accuracy of this release.
The financial information included in this press release is not required for any regulatory purpose and is, therefore, provided solely for additional investor guidance. Where possible the information has been constructed by management from available unaudited interim financial information.
This press release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (each, a “forward-looking statement”). Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur and include, but are not limited to, statements relating to: (i) the Company’s investments in building out its operational platform (including the option to acquire the Company’s largest supplier), and the extent to which (if at all) such investments (and such option) is able to support the scaling of the Company and the expansion of the Company’s in-house cannabis extraction capabilities, the improvement of the Company’s quality control and the provision to the Company of additional capacity to expand; and (ii) the Company’s implementation of initiatives to drive the Company’s strategic growth plan, including the ramping up of distribution of the new PLUS Mints line into new dispensaries in California, initiating sales of the Company’s gummies in Nevada (supported by a sales and marketing campaign in both states) and the exploration of new potential SKUs and the extent to which the implementation of such initiatives will achieve such a strategic growth plan and the Company’s ability to achieve such implementation.
These forward-looking statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this press release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, the success of the Company’s investments, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of the Company’s products, customer experience and retention, the continued development of adult-use sales channels, managements estimation of consumer demand in in jurisdictions where the Company exports, expectations of future results and expenses, the availability of additional capital to complete capital projects and facilities improvements, the ability to expand and maintain distribution capabilities, the impact of competition, the ability of the Company to implement initiatives and the possibility for changes in laws, rules, and regulations in the industry. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
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.
PLUS PRODUCTS INC.
Condensed Interim Consolidated Statements of Financial Position
(Expressed in U.S. Dollars - Unaudited)
|As at June 30,||As at December 31,|
|Cash and cash equivalents||34,107,470||22,398,587|
|Prepaids and note receivable||1,144,396||172,128|
|Property and equipment||4,658,361||1,875,401|
|Accounts payable and accrued liabilities||1,582,230||2,009,412|
|Income taxes payable||63,534||155,714|
|Total shareholders' equity||26,221,324||25,679,906|
|Total liabilities and shareholders' equity||45,227,651||27,845,032|
PLUS PRODUCTS INC.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Expressed in U.S. Dollars - Unaudited)
|Three months ended
|Six months ended
|Cost of sales||2,855,224||1,353,448||5,408,325||2,152,241|
|Advertising and promotion||483,260||47,716||710,560||65,923|
|General and administrative||568,326||105,834||1,028,627||187,582|
|Meals and travel expenses||217,750||57,096||416,310||87,256|
|Research and development||131,032||-||137,019||-|
|Salaries and benefits||1,797,423||380,970||2,853,110||584,398|
|Loss from operations||(4,608,685 )||(1,029,647)||(7,616,412 )||(2,011,787)|
|Other (income) expense|
|Loss (gain) on foreign exchange||90,740||-||(66,839 )||-|
|Loss before income taxes||(5,268,787 )||(1,041,647)||(8,638,622 )||(2,038,128)|
|Income tax expense||106,271||67,773||181,295||86,607|
|Loss and comprehensive loss for the period||(5,375,058 )||(1,109,420)||(8,819,917 )||(2,124,735)|
|Weighted average equivalent uncompressed proportionate shares outstanding:|
|Basic and diluted||30,751,437||11,102,034||27,814,002||9,276,446|
|Loss per equivalent uncompressed proportionate share:|
|Basic and diluted||$ (0.17 )||$(0.10)||$ (0.32 )||$(0.23)|