Plus Products Reports Unaudited 2019 1st Quarter Results
Q1 2019 revenues increase 274% over Q1 2018 to $3.2 million
SAN MATEO, Calif., May 30, 2019 (GLOBE NEWSWIRE) — Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) (the “Company” or “Plus Products”), a leading cannabis branded products company in the US, today released its unaudited financials for the quarter ended March 31, 2019 expressed in US$.
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.
Subsequent Events:
- 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. 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.
Jake Heimark, co-founder & CEO of PLUS Products
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.
Original press release