California-Based Cannabis Edibles Company Plus Products Files For IPO

Early this week, Plus Products filed a preliminary prospectus for its IPO, and is planning to list shares on the Canadian Securities Exchange once it achieves the listing requirements.

The prospectus seeks to raise $15 million through the offering, for which the lead underwriters are PI Financial and Canaccord Genuity.

Plus Products plans to use 40% of the capital raised to expand capacity, within the California market only where they have seen a tremendous amount of growth. Their products rank as the fourth most popular edible in all of California, according to BDS Analytics. The company’s mission is to “make cannabis safe and affordable”, offering options in low-dose edibles.

Plus Products is owned by its subsidiary, Carberry, and currently offers six infused-gummy products to customers in California. The gummies are sold in over 200 dispensaries and have made their way into delivery services such as Eaze. Once they have saturated the California market, the company plans to expand into other legalized states, and possibly Canada.

The company was recently valued at approximately $25 million and plans to pursue a much higher valuation through the increased capital from this offering. The company claims to trade at 1.7x revenue.

Plus Products’ offerings are ambitious, to say the least. They only incorporated on March 29, 2018, and have reported net losses due to operational costs, and anticipates more losses as operational expenses are increased. At present, according to the Prospectus, the company did not generate operating revenue and is in the negative for cash flow at present. During the first half of 2018, Plus Products generated $2.45 million in sales. In 2017, they generated $1.07 million in sales.

Nevertheless, the prospectus has an optimistic tone, pointing to the success in the California market and the patent-pending features of the products that make it unique such as extracting cannabis oil so that there is no smell or taste to the gummies.

Anne-Marie Fischer

Anne-Marie Fischer

Anne-Marie Fischer is a cannabis educator and writer, engaged with cannabis brands and organizations across the globe. After serving the United States and global cannabis industries, she has recently returned home to Canada to serve the legal cannabis industry with education and engaging content.


3 comments

  • Avatar
    Edward Dagel

    September 6, 2018 at 6:31 pm

    Good afternoon.
    I would like to be kept in the loop with your company. Investing in California-Based Cannabis Edibles Company Plus Products could be very wise. I would like to know more about and when you files For IPO.

    Thank You!

    Reply

  • Avatar
    teako niles

    September 8, 2018 at 2:52 pm

    I would like to know more about your company’s ipo so I can invest.
    thanks

    Reply

  • Avatar
    John losey

    September 11, 2018 at 12:49 pm

    I’m with them

    Reply

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