- PLUS received a positive rating, in part, due to its anticipated move into cannabis baked goods and mints
- PLUS is eyeing expansion into Oregon, Nevada and additional states in the future
- According to retail sales data, PLUS was California’s number one cannabis-infused edibles brand in retail sales and units sold in Q3 and Q4 2018
Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) has received a ‘Speculative Buy’ rating in its initial coverage by Canaccord Genuity (“CG”), as well as a price target of C$8 (http://nnw.fm/wVUz2). Driving that positive report is the company’s planned move to expand its product line of cannabis edibles, such as gummies, into baked goods and mints.
PLUS may also offer its top-selling product lines beyond California into Oregon and Nevada. The company has also alluded to future growth into other markets, such as Massachusetts, Florida, Michigan and New York. This proposed expansion comes as hemp and cannabis markets continue to flourish. As Bobby Burleson, a CG analyst, noted in the report (http://nnw.fm/wVUz2), “We see significant long-term growth opportunities for hemp-based CBD.”
CG’s report noted that gummies represent 36 percent of the cannabis edibles market in California. PLUS could gain product share, as consumers in that market have begun to trend away from buying traditional flower at dispensaries. Edibles have gained from this shift, Real Deal reported. As a result, gummies rose from 28 percent of California sales in January 2018 to almost 45 percent in January 2019.
According to BDS Analytics’ retail sales data, PLUS product lines made up the number one cannabis-infused edibles brand in retail sales and units sold in Q3 and Q4 2018 (http://nnw.fm/Fp56m). CG projects that PLUS will sell 3.7 million packages in 2019, as compared to 1.4 million in 2018. CG also estimates that the company’s California market share could almost double from 8 percent in 2018 to 15 percent in 2019, reaching 28 percent in 2020, as reported by Real Money.
San Mateo, California-based PLUS is a cannabis-infused, branded products manufacturer currently selling to regulated medicinal and adult-use recreational markets exclusively in California. PLUS is focused on building the largest cannabis brand by growing organically and through acquisitions.
For more information, visit the company’s website at www.PlusProducts.com
NOTE TO INVESTORS: The latest news and updates relating to PLPRF are available in the company’s newsroom at http://nnw.fm/PLPRF
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