SAN MATEO, Calif., May 28, 2019 (GLOBE NEWSWIRE) — Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) (the "Company" or "PLUS"), one of California's top edibles brand and manufacturer by market share according to BDS Analytics, today announced its expansion into the Nevada market, its first market outside of California. PLUS has entered into a definitive agreement to partner with TapRoot Holdings Inc. ("Taproot"), a vertically integrated cannabis company operating cultivation and manufacturing facilities in Las Vegas, Nevada.
PLUS expands with a dominant product portfolio:
PLUS is the #1 cannabis gummies brand in California with 25% market share in 2019 YTD, according to BDS Analytics. PLUS will market its top selling gummies and recently launched low-dose mints in Nevada dispensaries this summer. PLUS plans to replicate its success in California, selling over 1 million units in 2018 with the #1 and #2 top selling cannabis products among over 20,000 products (according to BDS Analytics and Headset Inc.).
Nevada is a key market for building an internationally recognized brand:
Nevada surpassed retail sales expectations in its first year of recreational sales, and sales are expected to surpass $700 million in 2020 (according Arcview Market Research and BDS Analytics). With over 45 million visitors a year from all over the world, Nevada is a key market to building an internationally recognized brand. As in California, edible products have continued to increase in popularity, growing from 14.5% of recreational sales beginning in Q3 2017 to 18% today.
PLUS will lead manufacturing operations to maintain quality and consistency:
PLUS believes that TapRoot has the facilities available for PLUS to easily and quickly deploy its machinery, ingredients, and people to ensure that the product remains consistent both in California and Nevada. As PLUS expands into jurisdictions outside of California, it will serve as the manufacturing operations partner to ensure quality and consistency across markets.
"As we look to expand beyond California, we remain committed to producing a consistent product in all jurisdictions," said Jake Heimark, co-founder and CEO of PLUS. "We want the PLUS customer to have the same experience with our products whether they buy it in LA or in Las Vegas. Partnering with the TapRoot team will let us realize that goal, and we are confident they are the right team to spearhead our expansion in Nevada."
TapRoot is an ideal partner with a high-quality cannabis oil supply:
PLUS believes it can leverage TapRoot's extraction capabilities as a part of a supply agreement and TapRoot will share in the economics of the deal through a revenue sharing model. In addition to TapRoot's extraction capabilities, it has also received 7 of the 61 newly issued retail licenses in December 2018. Led by CEO, Shane Terry, TapRoot has operational expertise in the market and PLUS believes that TapRoot will be a strong partner who believes in producing premium branded products that will redefine the future of cannabis, in line with the PLUS ethos of producing quality products that make cannabis safe and approachable.
"Shane and his team are impressive operators with a deep understanding of the Nevada market," said Nathan Yagoda, VP of Strategy at PLUS. "This deal structure allows PLUS to rapidly deploy into new markets and focus on building our brand and gaining market share."
About Plus Products
PLUS creates safe low dose and delicious cannabis food products that enhance the everyday. PLUS's mission is to make cannabis safe and approachable use nature to bring balance to people's lives – that starts with high-quality, precisely dosed products that deliver consistent experiences. The gummies PLUS's food products, which include gummies and mints in a variety of delectable flavors, are manufactured at PLUS's own factory in Adelanto, CA, where dosage is tested twice internally and then tested twice again by an independent lab. PLUS is headquartered in San Mateo, CA with 80 employees.
TapRoot is a vertically integrated cannabis company operating cultivation and manufacturing facilities in Las Vegas, Nevada and manufacturer of the best-selling vape brand in 2018, Roots, according to LeafLink, among over 700 competitors. Founded by a powerful network of industry leaders and innovators guided by a bold vision and creative culture, TapRoot is focused on the production of premium branded products that will redefine the future of cannabis as a pillar of a modern, integrated lifestyle.