Plus Products Inc. Completes CAD$20 Million Initial Public Offering

Plus Products Inc. (CSE:PLUS) (the “Company”) is pleased to announce the successful completion of the Company’s initial public offering (the “IPO”) of 6,153,847 subordinate voting shares (the “Offered Shares”) at a price of CAD$3.25 per Offered Share for total gross proceeds of CAD$20,000,002.75.

The IPO was made through a syndicate of agents lead by PI Financial Corp., and including Canaccord Genuity Corp. and Haywood Securities Inc. (collectively, the “Agents”). The Company has granted the Agents 297,784 non-transferrable share purchase warrants (the “Agents’ Warrants”) with each Agents’ Warrant exercisable into one subordinate voting share in the capital of the Company at the price of CAD$3.25 per subordinate voting share for a period of 24 months from today. In addition, the Agents received a fee equal to 6% of the gross proceeds of the IPO from subscribers other than those on the President’s List and a fee equal to 2.5% of the gross proceeds of the IPO received from the President’s List subscribers. Furthermore, PI Financial Corp. received a corporate finance fee of US$200,000, which was satisfied by the Company by issuing 80,000 subordinate voting shares to PI Financial Corp. upon closing of the IPO.

The Offered Shares were listed on the Canadian Securities Exchange (the “CSE”), effective Thursday, October 25, 2018 and will begin trading on Monday, October 29, 2018, under the trading symbol “PLUS” on the CSE.

“We are deeply appreciative to have received robust demand and to close the books on our initial public offering. I would like to personally thank the many people that worked diligently to help build Plus Products into the company it is today, said Jake Heimark, CEO of the Company. Our goal is to continue to be a leader in California’s regulated cannabis industry and to add value to our shareholders over the long term.”

The securities of the Company 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

The Company is a branded products manufacturer based in California. Its products consist of cannabis infused edible, which it sells to both the regulated medicinal and adult-use recreational markets. PLUS™ is currently one of the fastest-growing edible brands in California with several top-selling products, by category.

The Company’s mission is to make cannabis safe and approachable – that starts with manufacturing high-quality products delivering consistent experiences.  All products are produced in the Company’s dedicated food-safe cannabis manufacturing facility in southern California.

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, including, but not limited to, the statements relating to the Offered Shares commencing trading on the CSE on October 29, 2018 under the symbol “PLUS”. 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.

The CSE has neither approved nor disapproved the contents of this news release. The CSE does not accept responsibility for the adequacy or accuracy of this release.

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

Source: www.globenewswire.com