Plus Products Second Quarter Revenue Grows 12% to $ 4.8 Million – New Cannabis Ventures
Plus Products Achieves Record Quarterly Sales, Reports Second Quarter 2021 Financial Results
SAN MATEO, Calif., August 04, 2021 (GLOBE NEWSWIRE) – Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) (the âCompanyâ or âPLUSâ), a branded cannabis products company in the United States , today released its unaudited financial and operating results for the quarter ended June 30, 2021, expressed in US dollars. These documents can be viewed on the Company’s SEDAR profile at www.sedar.com and on the website of the Canadian Securities Exchange (the âCSEâ) at www.thecse.com.
Q2 2021 Financial Highlights
- Revenue: Net revenue increased 12% year-over-year for the quarter ended June 30, 2021 to $ 4.83 million, compared to $ 4.33 million for the quarter ended June 30, 2020. Net revenue during the period represents the largest number of sales by the Company in a single quarter. During the period, the Company leveraged the advantages of a self-service distribution partner in California and expanded its product offering to increase sales. The company continues to sell its products in the Nevada THC market and nationally in its hemp-derived CBD lines.
- Gross Profits: Gross profits in the second quarter of 2021 increased 24% year-on-year to $ 1.94 million, from $ 1.57 million in the second quarter of 2020. The gross profit margin for the period increased year-over-year to 40%, from 36% in the second quarter of 2020.
- Operating profit (loss): Operating loss was $ 0.95 million in the second quarter of 2021, compared to $ 1.36 million in the second quarter of 2020, a 30% improvement over year-over-year. In the second quarter of 2021, the Company more effectively leveraged advertising, promotion and advisory costs to support the business, while reducing professional costs.
- Cash balance: The Company declared $ 6.69 million in cash and cash equivalents as at June 30, 2021. This cash balance has also been adjusted to reflect the Company’s semi-annual interest payment of $ 0.87 million made at the end of the period.
Highlights of the second quarter of 2021
- In April, the Company announced the completion of the previously announced conversion of certain 12.00% secured debentures due February 28, 2024. Debentures with an aggregate principal amount of C $ 4,990,000 (4,990 debentures) were converted into 5,252,631 subordinate voting shares issued by treasury at a conversion price of Cdn $ 0.95 per share. In addition, accrued interest to the date of conversion in the aggregate amount of CA $ 118,096.66 was paid to former holders of debentures subject to conversion.
- Also in April, the company announced the launch of its PLUS Hash Gummies in concert with Biscotti Brands, a premium hash brand.
- Also in April, the Company announced that its amended debentures have been approved for listing on the CSE under the symbol âPLUS.DB.Aâ.
- In June, the company announced the re-launch of its best-selling limited edition gummy candies for Pride 2021, with a portion of the proceeds from each box sold going to the Transgender, Gender Variant and Intersex Justice Project.
- Also in June, the company announced that it had filed an early warning report as required by NI 62-103 on behalf of Matt Schmidt regarding his holdings in the company in connection with an acquisition of common shares. Class B issued under restricted share units granted to Mr. Schmidt.
- Also in June, the company announced the resignation of director Matt Schmidt.
Highlights of the activity after the end of the period
- In July, the company announced the release of a second batch of its limited edition PLUS Hash Gummies, made in conjunction with Biscotti Brands, a premium hash brand, following strong consumer and retail demand for the release. initial product.
âWe are pleased to demonstrate that our revenues are back on track after the one-off accounting changes in the first quarter of 2021. In the second quarter of 2021, we recorded the highest revenues as a business so far. We have successfully transitioned to a distribution-only distributor in California, and we see this change reflected positively in the results this quarter. In addition to progress with our new channel partner, we continued to gain traction with our fully in-house sales team as well as our special and collaborative edition offerings, âsaid Jake Heimark, Co-Founder and CEO.
PLUS continues to believe that California is the most strategically valuable market for building a cannabis brand. Not only is California the largest legal cannabis market in the world today, but more importantly it retains the greatest growth potential of any market in the United States. The California adult market is expected to grow significantly over the next three years. With a projected market size of $ 6.4 billion in 2025, California is expected to be more than twice the size of the next largest U.S. market.
Jake Heimark, co-founder and CEO
We look forward to expanding and consolidating our position as one of the strongest brandsÂ² in a California market that we believe will help shape long term winners in the domestic and international cannabis market.
Â¹BDS Analytics Forecast – February 2021 (Colorado – $ 2.7 billion)
Â²According to PLUS – Brightfield Brand Health Survey – Wave 2: December 2020; N = 1,535 consumers of CA PLUS edibles had the highest unaided brand awareness among edible users in California.
Conference call details
At 6:00 p.m. EST / 3:00 p.m. Pacific Time today (August 4, 2021), the company will host a conference call and webcast to discuss financial results and recent highlights.
Call numbers of participants:
Toll free: (866) 220-4156
Toll / International: (864) 663-5231
* Participants must request the Plus product earnings call or provide conference ID: 7684223
Please log in or join the webcast at least 10 minutes before the start of the call
The call will also be webcast at https://edge.media-server.com/mmc/p/9riujrjb. Please visit the website at least 15 minutes prior to the call to register, download and install any necessary audio software. After the call ends, an archived audio webcast of the conference call will be available for replay on the company’s website at PlusProductsInc.com.
Jake Heimark, Co-Founder and CEO, and Tessa O’Dowd, CFO, will host a question-and-answer session following the prepared remarks.
PLUS is a cannabis and hemp based food company focused on using nature to balance the lives of consumers. PLUS’s mission is to make cannabis safe and accessible – it starts with high-quality products that deliver consistent consumption experiences. PLUS is headquartered in San Mateo, California.
For more information contact:
CEO & Co-founder
Phone +1 778.231.6324
Adjusted uncompressed weighted average shares outstanding and loss per share.
The Company further determined the adjusted uncompressed weighted average of shares outstanding and loss per share, basic and diluted. The Company believes that these measures are representative of loss and comprehensive income per share; however, these performance measures do not have standardized meanings. As such, it is likely that there are differences in the method of calculation compared to similar measures presented by other issuers. Management believes that in addition to conventional measures prepared in accordance with GAAP, certain investors use this information to assess the performance of the Company. Therefore, they are intended to provide additional information and should not be viewed in isolation or as a substitute for performance measures prepared in accordance with GAAP.