Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) released its unaudited financial and operational results for the third-quarter ending September 30, 2020, with revenues growing slightly to $3.7 million versus net revenues of $3.5 million for the same time period in 2019. Plus also trimmed its losses to $(1.5M) in the quarter versus ($9.5) million for the same quarter in 2019 representing an 84% improvement.
“The third quarter was an exciting period for PLUS as we continued our steady progress towards profitability, achieving 40% gross margins for the first time and consuming just $0.4M in cash,” stated Jake Heimark, Co-founder, and CEO. “Commercially, we took significant steps in expanding our product portfolio in both size and purpose with two new product launches. We delivered the most concentrated cannabis gummy in the California market to consumers with our HI-CUBES product line, a launch that was followed shortly by the introduction of our first line of sleep-focused products. A majority of consumers looking for cannabis-centric sleep aids are still unsatisfied, a finding made clear by the success of PLUS SLEEP, which sold into over two-hundred accounts during the first two months following its launch.”
During the quarter, Plus said it continued to have strong cannabis revenues in the California adult-use market with contributions from the Nevada adult-use market and its national hemp CBD product line. In July, the company increased the wholesale price of its core product line, resulting in a temporary slow-down in sales during the first two months of the period. Plus also said that it finished the quarter on a high note with strong sales in the final month and expects fourth-quarter net revenues to exceed $4.0 million.
Heimark added, “While sales in the third quarter were not as robust as the first half of the year, we believe the short-term slow-down in sales, mostly attributable to the price increase on our core product line, will be well worth the improved unit economics and long-term sustainability of the PLUS brand on shelves. In Nevada, despite manufacturing complications during the initial wave of COVID-19 restrictions, PLUS achieved over $1.5 million in retail sales during its first year on shelves while maintaining a spot as a top-5 brand in a market with over 50 competitors. With the expectation of profitability on the horizon, over $12.5 million in cash on hand, and one of the leading edibles brands in the industry’s largest legal market, we believe PLUS is poised for continued growth over both the short and long term.”
Plus said it is actively working towards a solution to address the maturity of its 8% unsecured convertible subordinated debentures totaling C$25 million that mature on February 28, 2021 and expects to engage PI Financial Corp. to support its efforts related to this matter.