PLUS Products May 2020 Newsletter

May 1, 2020 at 12:00 AM EDT

Change Is Inevitable

The cannabis space is ever-changing and at PLUS we are constantly looking for innovative solutions to implement as the market evolves…launching new products for new consumers and pivoting our strategy to meet the industry where it is today.

We believe that it is important to keep our investors up to date with what is changing and how we are making decisions to tackle those changes.

Over the second half of last year, the market demonstrated that investors were no longer interested in a ‘growth-at-all-cost’ approach. The landscape has shifted, and stakeholders want to see thoughtful, deliberate action leading companies towards profitability.

We recognized this shift and made significant changes to our business in the first quarter of this year. The impacts of these changes are captured in the Company’s Q1 financials filed at the end of May:

Q1 2020 Financial Highlights*

  • 36% quarter-over-quarter revenue growth

  • 35% gross profit margins, up from 26% the previous quarter

  • 75% quarter-over-quarter reduction in operating losses

  • $14.2M cash-on-hand at March 31, down just $1.0M from year-end

PLUS CEO Jake Heimark commented on the progress: “Our first quarter financial results paint the picture of a much healthier business than previous quarters, but the work is far from done. In 2020, we are focused on leveraging our core capabilities to create capital-efficient growth through known distribution channels.”

Limited Edition Pride Gummies

At the start of this month, PLUS re-released our best-selling limited edition Pride gummies. PLUS is partnering with the SF Queer Nightlife Fund to donate $1 per tin sold to provide direct financial relief to workers in queer nightlife in San Francisco who have been affected by the COVID-19 pandemic. This is an annual tradition for PLUS, but in particularly turbulent times like these, it is especially important that we do what we can to support the communities we operate within.

PLUS Recent News Releases 

May 7, 2020: Plus Products Reports Audited 2019 4th Quarter and Year-End Financial Results
 
May 28, 2020: Plus Products Reports First Quarter 2020 Financial Results, Sees 36% Revenue Growth over Last Quarter
 
June 1, 2020: Plus Products Re-Launches Best-Selling Limited Edition Gummies for Pride 2020, Collaborates with SF Queer Nightlife Fund
 
Meet The Team, See Our Facility
 
Co-Founders Jake Heimark and Justin Gwin breakdown what makes our little cubes so special: Come with me, and you'll see...

*Complete filings are available for review on the Company’s SEDAR profile at www.sedar.com and on the Canadian Securities Exchange (the “CSE”) website at www.thecse.com.