Nevada Expansion Latest in String of Big Moves by Plus Products

As cannabis companies become more established, many choose to become multi-state operators, with assets and operations in a number of US legal markets.

Most companies have achieved this through acquisitions and strategic partnerships with companies having existing assets and licenses, allowing companies to gain control over cultivation and processing facilities, licensing, and often retail operations and distribution chains, rapidly increasing capacity and augmenting or achieving vertical integration, key benefits of multi-state operations.

As new markets emerge, multi-state operators can build on the lessons learned elsewhere and more easily transition into them.

Up until now, Plus Products (CSE: PLUS, OTCQB: PLPRF) has operated with a laser focus on California, the world’s single largest adult-use cannabis market = becoming one of the state’s premier edibles brand. PLUS is the state’s top-ranked gummies brand, boasting both the #1 and #2 best-selling cannabis products across all categories.

Click here to see the company investor presentation

Following closely on the heels of the nationwide launch of its 100% hemp-derived CBD line in partnership with Casper Sleep and American superstar-philanthropist John Legend, this week the company announced that its best-selling THC-infused gummies are now available in Nevada’s recreational adult use market.

Nevada a Natural Fit

Nevada is a key market for building an internationally-recognized brand and advancing the company’s transition into a multi-state operator.

Nevada legalized cannabis for adult recreational use on January 1, 2017 and, buoyed by a flourishing tourism industry, which attracts over 45 million visitors a year, retail sales quickly exceeded expectations, and are now predicted to surpass  $1.2 billion by 2022 according to a report by Arcview Market Research & BDS Analytics. Like California, Nevada’s edible products continue to grow in popularity, growing from 14.5% of recreational sales in Q3 2017 to 18% today according to BDS Analytics.

Taproot Partnership Advances Expansion

The plan for an expansion into Nevada was realized through a partnership with Taproot Holdings Inc, a vertically-integrated cannabis company, which has provided PLUS with space in its licensed facility to produce PLUS’s signature infused gummies.

Click here to see the company investor presentation

This model is ideal as it allowed PLUS to quickly and easily deploy its machinery, ingredients and people to ensure its products maintain the consistently high quality standards consumers have come to expect, with commercialization coming just four months after PLUS and Taproot entered into a definitive agreement.

Jake Heimark, co-founder and CEO of Plus said, “Operating in Nevada only four months after signing a definitive agreement with TapRoot is a testament to our commitment to execution in building a national footprint. We have created and commercialized the best-selling gummies brand in California. Now with this expansion, we aim to replicate this successful strategy in Nevada and ensure high-quality cannabis products reach more consumers in the U.S.”

Availability

Plus infused gummies are currently available at three Medmen locations in Las Vegas, and a state-wide roll-out to dispensaries is planned in the coming weeks.

Its best-selling edibles are also available in over 360 licensed retailers across the state of California, and its line of 100% hemp-derived CBD-infused gummies are available for purchase nationwide at plusproducts.com.

The CBD line includes three distinct products, labeled in accordance with the company’s simplified brand strategy.  Each BALANCE Blueberry gummy is infused with 50mg of CBD, while UPLIFT Grapefruit gummies are infused with 50mg of CBD augmented by vitamin B, and SLEEP Blackberry Tea gummies contain 25mg of CBD and melatonin.

In late September, PLUS unveiled three new flavours at the Hall of Flowers cannabis trade show in Santa Rosa, California; Balance Cucumber Lime gummies contain 3.5mg THC and 1.5mg CBD each, while Uplift Tangerine gummies are infused with 5mg THC and <0.1mg CBD; and Unwind Concord Grape gummies have 4.5mg THC and 0.5mg CBD per piece. Plus is currently working on a line of infused chocolates, expected in Q1 2020.

Click here to see the company investor presentation

Further Expansions Coming

As of last year’s mid-term elections, 33 states have legalized cannabis for medical purposes, while ten of them and the District of Columbia have legalized cannabis for recreational adult use. In December, the 2018 Farm Bill was also signed into law, legalizing hemp and the production of hemp-derived CBD, enabling operations in states where other cannabis operations are still illegal. Attitudes are quickly shifting in favour of national legalization, and if that ever comes to fruition, multi-state operators will be better positioned to capitalize.

PLUS intends to expand to 5 additional states by the end of 2020 with  Arizona, Illinois, Massachusetts, Michigan, and New York at the top of the list for expansion. The company expects to use a similar partnership model to ensure quality and consistency across markets. At the pace Plus is moving, you’ll definitely want to keep a close eye on them.

Watch this page and visit https://www.plusproducts.com/ for updates.

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About Tony Deyes