On May 23, 2018, we published revised versions of our Privacy Policy and User Agreements. Please read these updated terms and take some time to understand them. Your use of our services is subject to these revised terms.
Yes, I Agree.

Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) Offers Secured Loan for Option to Buy Cannabis Oil Manufacturer

  • Plus Products has the right – but no obligation – to buy Emerald Bay Wellness and the business assets of Emerald Bay Extracts
  • Emerald Bay Extracts has been one of Plus Products’ largest suppliers for the past year
  • If the option is exercised, PLUS will reap the benefits of vertical integration and directly interact with the cannabis plant

Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF), manufacturer and marketer of cannabis food products, has purchased an option to buy California-based cannabis oil manufacturer Emerald Bay Wellness LLC and the business assets of Emerald Bay Extracts. The option specifies cash and stock consideration for PLUS to acquire one of its largest cannabis oil suppliers and a supply partner for more than a year (http://cnw.fm/UD5bu).

In consideration for the option, PLUS intends to deliver a $400,000 secured loan to Emerald Bay Extracts. If the acquisition option is exercised, terms call for the issuance of approximately 1.2 million subordinate voting shares of PLUS and $250,000 in cash; in addition, Emerald Bay would not be required to repay the original loan. Some 70 percent of the deal’s consideration would be subject to performance revenue, which totals almost $28 million over a two-year, earn-out period (http://cnw.fm/Nfo8z).

“We targeted this acquisition because it allows us to reap the benefits of vertical integration while maintaining a focus on product manufacturing,” PLUS CEO Jake Heimark stated in a news release (http://cnw.fm/AA1lQ). “Ultimately, this is a rare opportunity to improve quality control, cut costs and grow revenues all at the same time.” Heimark added that acquiring Emerald Bay would give PLUS the opportunity to “directly interact with the cannabis plant.”

If exercised, the option would give Plus Products in-house cannabis extraction capabilities that could improve quality control and raise gross margins on its core edibles business. Exercising the option could also create a new revenue stream and product development capabilities.

San Mateo, California-based PLUS is a cannabis-infused branded products manufacturer selling to regulated medicinal and adult-use recreational markets in California and Nevada. 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://cnw.fm/PLPRF

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)

For more information please visit https://www.CannabisNewsWire.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

Do you have a questions or are you interested in working with CNW? Ask our Editor

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

Archives

Select A Month

Official NewsWire Relationships

Benzinga Cannabis Capital Conference Cannabis Business Summit & Expo 2019 Cannabis Drinks Expo MjMicro Conference New England Cannabis Network O'Cannabiz Conference & Expo

CannabisNewsWire Currently Accepts

Bitcoin

Bitcoin

Bitcoin Cash

Bitcoin Cash

Ethereum

Ethereum

Litecoin

Litecoin

USD Coin

USD Coin

Contact us: 303.498.7722