Bankrolled and Executing, Plus Products Looks to Finish 2019 Strong -- CFN Media
Seattle, WA - ( NewMediaWire ) - November 20, 2019 - CFN Media (OTCQB: CNFN), the leading agency and financial media network dedicated to the North American cannabis industry announces publication of an article discussing Plus Products, (CSE: PLUS) (OTCQX: PLPRF) strategy and healthy position in a depressed cannabis market.
By nearly all measures, the last eight months have been tough sledding for cannabis stocks. For example, the Horizons Medical Marijuana Life Sciences ETF is down 59.6% from its March high. Across the same span, the North American Marijuana Index has skidded 62.6%.
In depressed markets, there are always opportunities.
What started as shorters - traders that benefit from a stock price going down - piling up positions on bloated valuations as major companies were under-delivering on overblown promises, has been fueled by some real-life issues. Black market sales are remaining strong by drug dealers undercutting legal prices. The roll-out of adult use marijuana in Canada has been slower than expected. Furthermore, the CannTrust scandal this summer shook investor confidence.
Know what this is? Normal for any emerging market. Just because the cannabis industry hasn’t gone from 0-100 mph in 3 seconds like some thought it would, doesn’t mean that it hasn’t advanced rapidly. Scandals will fade away. Prices will come down. Things like Canadian regulators moving slowly to get more stores open and allow new forms of cannabis to come to market will one day be a thing of the past. Remember, Canada became the first G20 country in history to legalize marijuana just 13 months ago.
This pullback could be the best thing to ever happen to cannabis, especially for investors that thought they missed the boat on the first climb in so-called pot stocks. Companies have been re-valuated by analysts now that there is some history to judge progress against. Now there is a more level playing field as expectations are more realistic. At the same time, companies like Plus Products, Inc. (CSE: PLUS) (OTCQX: PLPRF), a hyper-focused consumer packaged goods company, continue to make positive progress, grow sales and strengthen the team.
Plus Products has initially focused its efforts on commercializing its cannabis products in California, the world’s sixth largest GDP and the largest legal marijuana markets on the planet. And it has done so spectacularly in a fiercely competitive market.
Over the last 12 months, Plus uplift cannabis-infused gummies (100mg THC, Figure 1: Plus Products Gummies.
Rounding out the top two gummies in CA is Plus unwind (90mg THC, 10mg CBD). Unwind also weighs in as the #1 selling CBD-inclusive gummy in California across the last 12 months.
Since sales began last year, more than 2.5 million units of Plus gummies have been sold in California.
The success has largely been organic, with the first high profile marketing efforts (billboards throughout San Francisco and Los Angeles) only recently launched.
New Markets on Tap
With these products dominating the market, Plus is moving into the next stage of development, launching new products (including a hemp-derived CBD line), new flavors and expanding into new markets - including ecommerce with a new online store for CBD products - as it becomes a truly national brand.
To penetrate the lucrative Nevada markets, a manufacturing partnership was forged in October with licensed producer TapRoot Holdings, with oversight from Plus management to ensure consistency with the popular CA products.
Also in the crosshairs are Arizona, Michigan, New York, Illinois and Massachusetts, with plans for international expansion starting with Canada.
Plus is not like so many other upstarts that spend more time explaining what they intend to do, even though they don’t have a clear path or the capital to do so. Plus ended the second quarter with $34.1 million in cash and cash equivalents, which management believes is enough capital to continue executing on its model for over a full year.
This cash is further backstopped by growing sales. During the latest reported quarter (ended June 30, 2019), Plus posted revenue of $3.58 million, an improvement of 126% from $1.58 million in the year prior quarter.
In the dogfight world of retail cannabis, Plus even figured out a way to improve margins through operational efficiency. Gross margins improved to $700,000, or 20%, compared to $200,000, or 14%, in Q2 2018.
The Venerable Team
Plus could confidently say that its leadership team was comprised of successful entrepreneurs, legal heavyweights, financial experts and strategic specialists before October began. Since then, the team has been made even stronger as the company attracts top-notch talent.
In October, Plus created the new position of Chief Scientific Officer, onboarding Dr. Ari Mackler to fill the role and spearhead evidenced-based edible cannabis research efforts across the entire PLUS Products portfolio of products. Dr. Mackler brings 20 years of medical affairs, communications and research experience in pharmaceutical, healthcare, and consumer goods industries to his new job that he earned during time at esteemed companies like Merck Co. and The Wonderful Company and organizations like the Almond Board of California.
That was followed by Jill Braff, President of Brit + Co, joining Plus Products’ Board of Directors this month. To understand what Braff brings to the table to catapult Plus Products’ online sales channel only takes knowing that she has served as Executive Vice President of Digital Commerce at HSN; General Manager of Ellen (DeGeneres) Digital Ventures; and Vice President of Marketing at Ancestry.com before taking her current position at Brit + Co.
Many of the major cannabis companies today are in a corner explaining to investors why they aren’t hitting the targets they have promised throughout the years. Not Plus Products. Their narrative only needs to consist about facts such as operational cash, best-selling products, a stellar team and its precision execution to date.
Click here to read the full article: http://bit.ly/32WSZo8
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CFN Enterprises Inc. (OTCQB: CNFN) is the owner and operator of CFN Media, the leading agency and digital financial media network dedicated to the legal cannabis industry.
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The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
Plus ProductsBlake BrennanHead of Investor Relations firstname.lastname@example.org Tel +1 650.223.5478
CFN MediaFrank Lane206-369-7050 email@example.com