SAN MATEO, Calif., Dec. 03, 2018 (GLOBE NEWSWIRE) -- Plus Products Inc. (the “Company” or “PLUS”) (CSE: PLUS), the leading cannabis edibles brand in California is pleased to announce that it has signed a definitive agreement (the “Definitive Agreement”) whereby PLUS™ intends to acquire the assets of California-based cannabis-infused baked goods brand GOOD CO-OP, INC. (“GOOD”) in an all share transaction.
Highlights
- Represents a strategic entry for PLUS into the third largest edibles category, baked goods, after having reached the top position in edibles with only four full-time products
- Acquisition is valued at approximately CAD$2,030,000, to be satisfied through the issuance of 357,464 restricted subordinate voting shares of PLUS
- Approximately 90% of the deal consideration is subject to an earn-out against quarterly baked goods revenue targets, which total to approximately USD$5,900,000 in 2019 and $19,800,000 in 2020
- PLUS has secured an additional 4,800 square feet of manufacturing space and associated equipment in Northern California, which bolsters the Company’s current 12,000 square foot manufacturing facility in Southern California
PLUS is the largest edibles brand in California and has been focused on leading the largest edibles category: gummies. This acquisition represents a strategic entrance for PLUS into a second edibles category, baked goods, allowing for greater market share in the edibles market. The baked goods category accounted for 13% of the overall edibles market in 2018, excluding tinctures, according to BDS Analytics.
GOOD (good-coop.com) is a premium edibles brand focused on creating delicious cannabis-infused brownies and baked goods. Committed to offering the best taste, flavor profile and quality without using additives or preservatives, GOOD’s products, including bite size brownies and pumpkin spice blondies, have been featured in Fortune, Vice Magazine and Eater.
The GOOD management team, the entirety of which will be joining PLUS, consists of co-founders Pete Cervantes, the head baker with over a decade of experience in food research and development including PepsiCo, and Mike Appezzato, with significant experience in operations from successful technology companies including Optimizely and Salesforce.
“When Pete and I started GOOD, our mission was to make the best cannabis baked goods products in the world,” said Mike Appezzato, CEO and Co-Founder of GOOD. “Manufacturing consistent cannabis food products at scale is challenging, and few companies do it well. After talking to several companies in the space, it was clear to our team that only PLUS has the operational know-how to help us scale across California and throughout the United States.”
“We grew PLUS into the top edibles company in California by leading with our product. We have focused on manufacturing consistent, high quality edibles that resonate with consumers,” said Jake Heimark. “The GOOD team has been focused on the same. This acquisition accelerates our time to market in the baked goods category, and will help solidify the PLUS leadership position in edibles. We are committed to becoming the largest edibles brand in all legal jurisdictions by continuing to lead with product, and we look forward to Mike, Pete and the GOOD team helping us build toward that vision.”
The completion of this Acquisition is subject to standard closing conditions customary in transactions of this nature and is expected to occur on or about December 14, 2018.
The securities of the Company to be issued pursuant to the Definitive Agreement have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, the securities of the Company may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of any offer to buy any securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About PLUS
Plus Products Inc. is a leading branded products manufacturer based in California. Its products consist of cannabis-infused edibles, which it sells to both the regulated medicinal and adult-use recreational markets. PLUSTM is currently one of the fastest-growing edible brands in California with several top-selling products The Company’s mission is to make cannabis safe and approachable - that starts with manufacturing high-quality products delivering consistent experiences.
About GOOD
GOOD is a cannabis-focused food brand. Its mission is to create high quality, low-dose products for mass-market consumers. Its first product, the GOOD brownie, is a modern twist on the classic pot brownie made with high quality ingredients and uniform product consistency.
For further information contact:
Investors:
Jessica Bornn
Director of Investor Relations
jessica@plusproducts.com
Tel +1 650.223.5478
Media:
Heidi Groshelle
Ingrid Marketing
Tel +1 415.307.1380
heidi@ingridmarketing.com
@heidigro
The CSE does not accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains statements and information that, to the extent that they are not historical fact, constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company's management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The Company does not undertake any obligation to update any forward-looking information to reflect information, events, results, circumstances or otherwise after the date hereof or to reflect the occurrence of unanticipated events, except as required by law including securities laws.