Plus Products Reports Unaudited 2019 1st Quarter Results
Q1 2019 revenues increase 274% over Q1 2018 to $3.2 million
San Mateo, CA – May 30, 2019 -- Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) (the “Company” or “Plus Products”), a leading cannabis branded products company in the US, today released its unaudited financials for the quarter ended March 31, 2019 expressed in US$.
Financial Highlights and Subsequent Events
Unaudited financial highlights from Q1 2019:
· Revenues climbed to $3.2 million in Q1 2019, a 274% year-over-year growth over Q1 2018 revenues of $0.9 million.
· Gross margin grew to 21% in Q1 2019, compared to 8% in Q1 2018.
· The Company raised $17.9 million in capital, net of share issuance costs, from the private placement offering of convertible debentures in February 2019.
· The Company’s cash balance rose to $35.6 million at March 31, 2019, up from $22.4 million as of December 31, 2018.
· Net working capital was $37.3 million in Q1 2019 compared to $22.4 million in Q4 2018. Current liabilities at March 31, 2019 were only $2.8 million as compared to $2.2 million at December 31, 2018.
· Shareholder equity reached $30.3 million at March 31, 2019, up from $25.7 million at December 31, 2018.
· Gross margins reached record levels, climbing 890% over Q1 2018 and 62% over Q4 2018, to $0.7 million in Q1 2019 from $0.4 million in Q4 2018, thanks to continued operating efficiencies at the Adelanto plant opened in January 2018.
· Plus Products continued to invest in building talent, market share, infrastructure and financial capacity for the prospects of future growth. Spending on operating expenses grew to $3.7 million in Q1 2019 up from $3.2 million in Q4 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.
· Capital expenditures for production equipment and leasehold improvements reached $1.1 million in Q1 2019. $1.5 million was also added for leased assets for the production facility leases in Adelanto and Sacramento, from converting to IFRS 16, accounting for leases.
· On April 2nd, 2019, the Company announced the appointment of Jon Paul, a veteran senior corporate finance executive and certified public accountant, as Chief Financial Officer.
· On April 18th, 2019, the Company announced the launch of PLUS Mints, its second product line in California, to complement its best-selling gummy products.
· On April 30th, 2019, the Company announced the hiring of Marc Seguin, former president and CMO of Popchips, as Chief Revenue Officer. Marc is one of the first veteran food executives to enter the cannabis space.
· On May 28th, 2019, the Company announced its expansion into the Nevada market through a definitive agreement with TapRoot Holdings, Inc. The Company expects to market its top selling gummies and recently launched low-dose mints in Nevada dispensaries this summer.
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 MD&A (Management Discussion & Analysis) filed under the Company’s profile at www.sedar.com and with the CSE.
Retail Data Highlights
According to BDS Analytics, the Company’s retail sales in the first quarter were $10.84 million, an increase of 4.9% over the fourth quarter of 2018. Additionally, PLUS “Uplift” and PLUS “Restore” remained the #1 and #2 best-selling edible products in California in both dollars and units sold.
In fact, PLUS “Uplift” was the top-selling branded product across all categories of more than approximately 13,700 products sold across all categories in California, according to Headset.
“Our Q1 results represent continued strong revenue performance and gains in market share,” said Jake Heimark, co-founder & CEO of PLUS Products. “As we progress further into 2019, we hope for an increase in the enforcement and regulatory clarity in the illegal cannabis market. Our involvement and leadership in the National Cannabis Roundtable aligns with our goals in helping to structure the laws that will one day serve to make cannabis safe and approachable for everyone.”
About Plus Products
PLUS creates low dose and delicious cannabis food products that enhance the everyday lifestyle. PLUS’ mission is to use nature to bring balance to people’s lives - that starts with high-quality, precisely dosed products that deliver consistent experiences. PLUS’ food products, which include gummies and mints in a variety of delectable flavors, are manufactured at PLUS’ 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 80 employees.
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 participates regularly in the National Cannabis Roundtable with John Boehner as honorary chairman.
For further information contact:
Director of Investor Relations
Tel +1 650.223.5478
Moxie Communications Group
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 news release contains statements and information that, to the extent that they are not historical fact, constitute forward-looking information within the meaning of applicable securities legislation. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company's management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The Company does not undertake any obligation to update any forward-looking information to reflect information, events, results, circumstances or otherwise after the date hereof or to reflect the occurrence of unanticipated events, except as required by law including securities laws.