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SAN MATEO, Calif., Could 28, 2021 (GLOBE NEWSWIRE) — Plus Merchandise Inc. (CSE: PLUS) (OTCQX: PLPRF) (the “Firm” or “PLUS”), a hashish branded merchandise firm within the U.S., at the moment launched its unaudited monetary and operational outcomes for the three months ended March 31, 2021, expressed in U.S. {dollars}. These filings can be found for evaluate on the Firm’s SEDAR profile at www.sedar.com and on the Canadian Securities Trade (the “CSE”) web site at www.thecse.com.
The Firm additionally introduced at the moment that Nathan Pearson, Chief Monetary Officer, might be leaving the Firm on the finish of this month. The Firm is happy to announce that Tessa O’Dowd, who has served because the Firm’s Controller for the final three years, has been appointed because the Firm’s Chief Monetary Officer.
“Mr. Pearson has performed an important function in our group during the last two years, spearheading the trouble that noticed the Firm cut back its money consumption by 85% from 2019 to 2020,” said Jake Heimark, Co-founder and CEO. “We’re grateful for Mr. Pearson’s service and contributions to the corporate. We’re excited to have Ms. O’Dowd step into the function of CFO transferring ahead. Ms. O’Dowd has been with the Firm since earlier than the IPO and I belief her immensely with the duty of her new place.”
Q1 2021 Monetary Highlights
- Revenues: Internet revenues had been $2.5M in Q1 2021. As detailed within the launch of the Firm’s 2020 Audited Financials, internet revenues throughout the first quarter had been negatively impacted by a big one-time accounting shift by which PLUS has moved to recognizing income on the time its merchandise are offered to licensed retailers for all gross sales occurring by means of the Firm’s new self-service distributor. Beforehand, the Firm acknowledged income on the level by which stock was transferred (offered) to its full-service distribution companions. The shift resulted in an efficient delay within the time at which all gross sales of merchandise by means of the Firm’s new distributor are acknowledged relative to gross sales that occurred to its earlier distribution companions.
- Gross Income: Gross earnings had been $1.0M in Q1 2021. Gross revenue margin in Q1 2021 grew to 41%, representing a rise year-over-year as in comparison with 35% in Q1 2020, and a rise quarter-over-quarter as in comparison with 30% in This autumn 2020.
- Working Income (Losses): Working losses had been $(2.4)M in Q1 2021, representing a 15% enhance year-over-year from $(2.1)M in Q1 2020, however a 29% enchancment quarter-over-quarter from $(3.4)M in This autumn 2020.
- Money Steadiness: The Firm reported $8.9M in money and money equivalents at March 31, 2021. On account of the transition to its new self-service distribution accomplice, the Firm invested an extra $1.5M into short-term working capital and different one-time money outflows.
Q1 2021 Enterprise Highlights
- In January 2021, the Firm entered into an unique gross sales settlement with Components of Inexperienced, a European e-commerce market for hemp CBD merchandise, to supply its merchandise throughout the UK.
- Additionally in January 2021, the Firm’s Bitter Watermelon UPLIFT gummies had been acknowledged as LeafLink’s best-selling hashish edible within the California market and one of many 5 best-selling edible merchandise throughout all energetic markets.¹
- In February 2021, the Firm introduced that it entered right into a partnership with CannRx Biosciences, a number one Israeli hashish agency within the boutique area of cannabis-based botanical drugs, to boost the onset of the Firm’s merchandise.
- Additionally in February 2021, the Firm introduced a strategic shift to develop its gross sales workforce, internalize all account administration, and transition to a self-service distribution accomplice within the California adult-use market.
- Additionally in February 2021, the Firm introduced that holders of the Firm’s 8.00% unsecured convertible debentures due February 28, 2021 accepted sure proposed amendments to the phrases of the Debentures, together with the extension of the maturity date from February 28, 2021, to February 28, 2024, and a rise within the coupon charge of from 8.00% to 12.00% each year. Additional particulars of the amendments to the debentures could be discovered within the Firm’s press launch dated February 25, 2021, obtainable here.
- In March, 2021, the Firm introduced that Jennifer Tung could be leaving her roles as Chief Threat Officer and Common Counsel, efficient April 15, 2021. Ms. Tung stays a particular advisor to the Board of Administrators.
- Additionally in March, 2021, the Firm introduced a partnership with Eaze Applied sciences, one in every of California’s largest supply marketplaces for authorized hashish, to launch a co-branded, limited-edition hashish gummy.
Put up-Interval Finish Enterprise Highlights
- In April, the Firm introduced the completion of the beforehand introduced conversion of sure 12.00% secured debentures due February 28, 2024. Debentures within the combination principal quantity of CAD$4,990,000 (4,990 Debentures) had been transformed into 5,252,631 Subordinate Voting Shares issued from treasury at a conversion worth of CAD$0.95 per share. As well as, accrued curiosity as much as the conversion date within the combination quantity of CAD$118,096.66 was paid to the previous holders of the Debentures topic to conversion.
- Additionally in April, the Firm introduced the launch of its PLUS Hash Gummies in live performance with Biscotti Manufacturers, a premium hash model. The product is offered for buy in California for a restricted time.
- Additionally in April, the Firm introduced that its amended debentures had been accepted for itemizing on the CSE beneath the image “PLUS.DB.A”.
Administration Commentary
“At PLUS, 2020 was centered round decreasing our money consumption and shifting from a single model to a portfolio of manufacturers. We consider that we had been profitable in attaining every of those targets and that PLUS is nicely positioned to pursue its targets in 2021 and past. These embody additional cementing the Firm’s standing as a number one hashish model in its house market of California², which stays the biggest hashish market globally³, together with exploring potential new geographies into which the Firm can develop.
“In February of this 12 months, the Firm introduced an necessary transition to a number one self-service distributor, Nabis Distribution. Traditionally, the Firm has partnered solely with full-service distributors, counting on a hybrid of each inside and exterior personnel to make up its gross sales power. Below this new self-service mannequin, the gross sales cycle for each order might be owned from begin to end by a member of the PLUS workforce.
“To additional facilitate the shift in the direction of a self-service distribution mannequin, we’ve got invested in our inside gross sales power by increasing the workforce greater than 75% because the begin of This autumn 2020. Regardless of the success we had in constructing the PLUS model with our full-service companions, we’ve got discovered the best method for us to attain the broadest distribution of our merchandise is to have a member of the PLUS workforce representing the Firm at every interplay with our retail prospects. This transition will make {that a} actuality throughout your entire California market.
“With this strategic shift in our gross sales mannequin full, we consider PLUS is poised to additional capitalize on the buyer model basis we’ve got constructed within the California hashish market. In line with a Brightfield Model Well being Survey performed in December 2020, 63% of our shoppers say that PLUS is their favourite gummy model; 42% of PLUS shoppers have been utilizing our merchandise for over 1 12 months, in comparison with the following highest model at 33%; 67% of PLUS shoppers use the model a minimum of weekly; and 88% of PLUS shoppers plan to purchase our merchandise once more.
“Critically, within the first quarter, PLUS was profitable in extending its debt obligations with holders of the Firm’s Debentures. Initially due February twenty eighth, 2021, debentureholders accepted all proposed amendments, together with an extension of the time period till February twenty eighth, 2024. Administration believes that this 3-year extension, representing 150% of the unique time period, demonstrates long-term confidence from our buyers and provides the Firm the chance to create worth for our shareholders as we proceed to maneuver ahead.”
- https://www.plusproductsinc.com/news-releases/news-release-details/leaflink-recognizes-plus-products-sour-watermelon-uplift-best
- In line with Headset Insights PLUS is among the three largest edibles manufacturers in California since adult-use hashish legalization
- Arcview | BDS Analytics – State of the Authorized Markets seventh Version
Convention Name Particulars
At 5:00 pm Jap Time / 2:00 pm Pacific Time at the moment (Friday, Could 28, 2021) the Firm will host a convention name and webcast to debate the monetary outcomes and its current company highlights.
Participant Dial-In Numbers:
Toll-Free: (866) 220-4156
Toll / Worldwide: (864) 663-5231
*Individuals ought to request the Plus Merchandise Earnings Name or present convention ID: 2654934
Please dial-in or log-on to the webcast a minimum of 10 minutes earlier than the beginning of the decision
The decision can even be webcast at https://edge.media-server.com/mmc/p/hxgzzmmm. Please go to the web site a minimum of quarter-hour previous to the decision to register, obtain, and set up any needed audio software program. Following the conclusion of the decision, there might be an archived audio webcast of the convention name obtainable for replay on the Firm’s web site at PlusProductsInc.com.
Jake Heimark, Co-founder and Chief Government Officer, and Tessa O’Dowd, Chief Monetary Officer, might be conducting a query and reply session following the ready remarks.
About PLUS
PLUS is a hashish and hemp meals firm targeted on utilizing nature to carry stability to shoppers’ lives. PLUS’s mission is to make hashish secure and approachable – that begins with high-quality merchandise that ship constant client experiences. PLUS is headquartered in San Mateo, CA.
For additional info contact:
Jake Heimark
CEO & Co-founder
ir@plusproducts.com
Buyers:
Cole Stewart
Investor Relations
cole@plusproducts.com
Tel +1 778.231.6324
Media:
plus@mattio.com
Mattio Communications
The CSE doesn’t settle for duty for the adequacy or accuracy of this launch.
Ahead-Trying Statements:
This press launch contains statements containing sure “forward-looking info” throughout the that means of relevant securities legislation (every, a “forward-looking assertion”). Ahead-looking statements are steadily characterised by phrases resembling “plan”, “proceed”, “count on”, “mission”, “intend”, “consider”, “anticipate”, “estimate”, “could”, “will”, “potential”, “proposed” and different related phrases, or statements that sure occasions or situations “could” or “will” happen and embody, however usually are not restricted to, statements referring to: the influence of the Firm’s initiatives to cut back its money consumption and to shift from a single model to a portfolio of manufacturers on the Firm’s targets in 2021 to additional cement the Firm’s standing as a number one hashish model in California and the exploration of potential new geographies for growth; the influence of the Firm’s adoption of the brand new self-service distribution mannequin on the Firm’s gross sales cycle; the extent to which the funding by the Firm on its inside gross sales power will additional facilitate the shift in the direction of a self-service distribution mannequin and to assist the Firm obtain the broadest distribution of its merchandise; the extent to which the strategic shift within the Firm’s gross sales mannequin will assist the Firm additional capitalize on the buyer model basis the Firm has constructed within the California hashish market; the extent to which the outcomes from the Brightfield Model Well being Survey performed in December 2020 mirror that the Firm continues to be one of many few names within the hashish house that has constructed true model client belief and loyalty; and the extent to which the approval of the extension by the Firm of its debt obligations demonstrates long-term investor confidence and the extent to which this contributes to the Firm’s alternative to create worth for our shareholders. These forward-looking statements are solely predictions. Varied assumptions had been utilized in drawing the conclusions or making the projections contained within the forward-looking statements all through this press launch. Ahead-looking statements are primarily based on the opinions and estimates of administration on the date the statements are made and are topic to quite a lot of dangers and uncertainties and different elements that might trigger precise occasions or outcomes to vary materially from these projected within the forward-looking statements. These dangers embody, however usually are not restricted to, the success of the Firm’s investments, the flexibility to retain key personnel, the flexibility to proceed investing in infrastructure to help progress, the flexibility to acquire financing on acceptable phrases, the continued high quality of the Firm’s merchandise, buyer expertise and retention, the continued improvement of adult-use gross sales channels, managements estimation of client demand in in jurisdictions the place the Firm exports, expectations of future outcomes and bills, the supply of further capital to finish capital initiatives and services enhancements, the flexibility to develop and keep distribution capabilities, the influence of competitors, the flexibility of the Firm to implement initiatives and the likelihood for adjustments in legal guidelines, guidelines, and rules within the trade.
Additional, the length and severity of the present COVID-19 pandemic could considerably influence or exacerbate among the above-listed dangers and uncertainties. Dangers that could be additional impacted by the COVID-19 pandemic relate to the Firm’s operations and growth, together with the Firm’s means to develop its model and gross sales and to keep up manufacturing ranges within the occasion that the Firm’s workers are restricted from accessing services for a big time period; to the Firm’s means to entry capital and the extent of borrowing prices; the Firm’s means service obligations beneath its debt securities and different debt or lease obligations; and the Firm’s means to adjust to the covenants contained within the agreements that govern the Firm’s current indebtedness.
The transmission of COVID-19 and efforts to comprise its unfold have resulted in worldwide, nationwide and native border closings, journey restrictions, vital disruptions to enterprise operations, provide chains and buyer exercise and demand (throughout all sectors), service cancellations, reductions and different adjustments, and quarantines, in addition to appreciable normal concern and uncertainty.
The general severity and length of COVID-19-related opposed impacts on the Firm’s enterprise will rely upon future developments which can not presently be predicted, together with directives of presidency and public well being authorities, the pace at which suppliers and distributors can return to full manufacturing, the standing of labor availability and the flexibility to workers the Firm’s operations and services. Even after the COVID-19 outbreak has subsided, the Firm could proceed to expertise materials opposed impacts to the companies because of its world financial influence, together with any associated recession.
The Firm is beneath no obligation, and expressly disclaims any intention or obligation, to replace or revise any forward-looking statements, whether or not because of new info, future occasions or in any other case, besides as expressly required by relevant legislation.
Non-GAAP Measures:
Adjusted uncompressed weighted common shares excellent and loss per share.
The Firm has moreover decided the adjusted uncompressed weighted common shares excellent and loss per share, fundamental and diluted. The Firm believes these measures to be consultant of loss and complete loss on a per share foundation; nonetheless, these efficiency measures haven’t any standardized that means. As such, there are more likely to be variations within the technique of computation when in comparison with related measures offered by different issuers. Administration believes that, along with typical measures ready in accordance with GAAP, some buyers use this info to judge the Firm’s efficiency. Accordingly, they’re supposed to offer further info and shouldn’t be thought of in isolation or as an alternative choice to measures of efficiency ready in accordance with GAAP.
PLUS PRODUCTS INC.
Condensed Interim Consolidated Statements of Monetary Place
(Expressed in U.S. {Dollars} – Unaudited)
| As at March 31, | As at December 31, | ||||
| Notice | 2021 | 2020 | |||
| $ | $ | ||||
| Belongings | |||||
| Present | |||||
| Money and money equivalents | 8,897,534 | 11,578,213 | |||
| Commerce receivables | 1,962,273 | 1,932,986 | |||
| Prepaids and deposits | 5 | 706,516 | 290,076 | ||
| Taxes recoverable | 108,098 | 108,098 | |||
| Notice receivable | 6 | 37,636 | 145,520 | ||
| Stock | 7 | 3,115,654 | 2,225,331 | ||
| 14,827,711 | 16,280,224 | ||||
| Non-current | |||||
| Prepaids and deposits | 5 | 889,815 | 867,495 | ||
| Property and tools | 8 | 2,068,650 | 2,188,784 | ||
| Intangible belongings | 9 | 25,885 | 40,441 | ||
| Deferred tax asset | 2,130,690 | 2,109,704 | |||
| Whole belongings | 19,942,751 | 21,486,648 | |||
| Liabilities | |||||
| Present | |||||
| Accounts payable and accrued liabilities | 10 | 1,640,500 | 1,304,848 | ||
| Present portion of car loans | 29,006 | 28,751 | |||
| Present portion of lease liabilities | 11 | 251,830 | 242,125 | ||
| Present portion of convertible debentures | 12 | – | 19,331,949 | ||
| 1,921,336 | 20,907,673 | ||||
| Non-current | |||||
| Car loans | 101,302 | 108,688 | |||
| Lease liabilities | 11 | 353,761 | 420,305 | ||
| Convertible debentures | 12 | 13,587,657 | – | ||
| Whole liabilities | 15,964,056 | 21,436,666 | |||
| Shareholders’ fairness | |||||
| Share capital | 13 | 45,973,522 | 41,962,392 | ||
| Reserves | 13 | 12,445,868 | 9,362,064 | ||
| Deficit | (53,502,379 | ) | (50,594,383 | ) | |
| Accrued different complete loss | (938,316 | ) | (680,091 | ) | |
| Whole shareholders’ fairness | 3,978,695 | 49,982 | |||
| Whole liabilities and shareholders’ fairness | 19,942,751 | 21,486,648 | |||
Nature of operations and going concern (Notice 1)
Commitments (Notice 19)
Occasions after the reporting interval (Notice 20)
Authorized on behalf of the Board of Administrators on Could 27, 2021:
| “Craig Heimark” | “Jacob Heimark” | |
| Director | Director |
The accompanying notes are an integral a part of these condensed interim consolidated monetary statements.
PLUS PRODUCTS INC.
Condensed Interim Consolidated Statements of Loss and Complete Loss
(Expressed in U.S. {Dollars}, besides variety of shares – Unaudited)
| Three Months Ended March 31, | |||||
| Notice | 2021 | 2020 | |||
| $ | $ | ||||
| Income | 2,543,682 | 4,739,209 | |||
| Price of gross sales | 1,496,562 | 3,085,419 | |||
| Gross margin | 1,047,120 | 1,653,790 | |||
| Working bills | |||||
| Promoting and promotion | 346,432 | 386,675 | |||
| Depreciation and amortization | 8, 9 | 24,502 | 25,319 | ||
| Consulting charges | 222,855 | 171,841 | |||
| Common and administrative | 311,681 | 460,719 | |||
| Meals and journey bills | 31,325 | 131,944 | |||
| Skilled charges | 427,562 | 381,987 | |||
| Regulatory charges | 1,797 | 15,552 | |||
| Analysis and improvement | 3,902 | 7,473 | |||
| Salaries and advantages | 14 | 1,469,777 | 1,743,710 | ||
| Share-based compensation | 13(f)(h) | 581,468 | 394,547 | ||
| Loss from operations | (2,374,181 | ) | (2,065,977 | ) | |
| Different (earnings) expense | |||||
| Curiosity and different earnings | (86,984 | ) | 1,490 | ||
| Accretion finance earnings | 4 | (25,289 | ) | (43,807 | ) |
| Accretion expense | 12 | 352,499 | 430,907 | ||
| Curiosity expense | 316,934 | 423,057 | |||
| Overseas trade loss (acquire) | (3,318 | ) | 36,780 | ||
| Loss earlier than earnings taxes | (2,928,023 | ) | (2,914,404 | ) | |
| Revenue tax (restoration) expense | (20,027 | ) | 16,990 | ||
| Internet loss for the interval | (2,907,996 | ) | (2,931,394 | ) | |
| Foreign money translation adjustment | 258,225 | (1,480,125 | ) | ||
| Loss and complete loss for the interval | (3,166,221 | ) | (1,451,269 | ) | |
| Weighted common widespread shares excellent: | |||||
| Fundamental and diluted | 49,149,524 | 33,822,501 | |||
| Loss per share: | |||||
| Fundamental and diluted | (0.06 | ) | (0.09 | ) | |
The accompanying notes are an integral a part of these condensed interim consolidated monetary statements.
