Palo Alto-based cannabis-infused edibles brand Plus Products closed an approximately $6M in Series B financing to expand its operations. The financing was led by Serruya Private Equity Partners (SPE) and Navy Capital Green Fund LP. The money from the capital raise will be used to fund rapid production capacity expansion, factory automation, working capital, and new product development.
“We are extremely proud of the products PLUS has brought to market,” said Jake Heimark, CEO, and co-founder. “We’ve quickly grown into one of the leading edible brands in California. With the proceeds of this round, we will continue to further our mission: to make cannabis safe and approachable for all types of consumers.”
Edibles have proven to be big winners among the recreational consumer in California. According to BDS Analytics, edible products have accounted for 18% of marijuana retail sales in February 2018 across licensed retailers in California. One of the biggest drawbacks with edibles is that consumers typically wait at least for a half hour for a response after ingestion. PLUS products are known for its rapid reaction. BDS Analytics also noted that PLUS ranked in the top ten sales for edible brands in California.
All of the PLUS products are produced in the company’s dedicated food-safe cannabis manufacturing facility in Adelanto, California. According to a company statement, the 12,000 square foot facility was outfitted for scalable food production with funds raised in 2017’s Series A round, led by The Green Organic Fund and Verde Mountain Fund.
“2018 is a historic year for California’s cannabis industry with the official launch of legalized adult use,” said John T. Kaden, Manager and Chief Investment Officer of the Navy Capital Green Fund. “PLUS is establishing a leading position in California and has assembled the right management team to execute and succeed in this complex regulated environment.”
In addition to its established lines, Plus Products has already begun launching limited edition products that capitalize on holidays like its Valentine’s day themed Rose & Vanilla gummies, which were available at select locations and through delivery services.