Profit Wire
 

Plus Products Announces Receipt of USD$5.7 Million from Exercise of Warrants

Jul 03, 2019

Profit Wire

SAN MATEO, Calif.-- Plus Products Inc. (the “Company” or “PLUS”) (CSE:PLUS) (OTCQX:PLPRF), today announces the closing of certain warrant exercises. Such warrant exercises occurred in connection with the previously announced acceleration of the expiry date of the certain warrants previously issued by the Company’s wholly-owned subsidiary, Plus Products Holdings Inc. (“PPH”), which warrants were assumed by the Company pursuant to the previously announced Share Exchange Agreement between the Company and PPH dated July 3, 2018.  The acceleration of the expiry date of such warrants applied to the Company’s Series Seed Preferred share warrants, Series B-1 Preferred share warrants and Series B-2 Preferred share warrants (collectively, the “Affected Warrants”).

Pursuant to section 1.2 of the certificates representing such Affected Warrants, the Company was entitled to accelerate the expiry date of the Affected Warrants in the event that the daily volume weighted average share price on the Canadian Securities Exchange (the “CSE”) of the issued and outstanding Subordinate Voting shares of the Company (the “Listed Shares”) was greater than US$0.92 per Listed Share (with respect to the acceleration of the Series Seed Preferred share warrants) and was greater than US$2.75 per Listed Share (with respect to the acceleration of the Series B-1 Preferred share warrants and Series B-2 Preferred share warrants) for a period of 10 consecutive trading days following the date of issuance of the Affected Warrants (the “Acceleration Trigger”).

The Company confirms that as of the close of markets on April 29, 2019, an Acceleration Trigger had occurred with respect to the Affected Warrants. In accordance with the terms of the Affected Warrants, the Company has delivered notice of the Acceleration Trigger to the registered holders of the Affected Warrants of the Acceleration Trigger. The Affected Warrants were set to expire at 5:00 p.m. PST on May 29, 2019, being the 30th day following the delivery of notice to the Affected Warrant holders of the occurrence of the Acceleration Trigger (the “Early Expiry Date”). Any Affected Warrants remaining unexercised after the Early Expiry Date have been cancelled.

Each Series Seed Preferred share warrant is exercisable into one Subordinate Voting share in the capital of the Company at a price of USD$0.69 per share, each Series B-1 Preferred share warrant is exercisable into one Subordinate Voting share in the capital of the Company at a price of USD$2.20 per share and every one hundred Series B-2 Preferred share warrants are exercisable into one Proportionate Voting Share of the Company at a price of USD$220.00 per share.

The Company reports that 3,441,974 Affected Warrants of the company have been exercised prior to the Early Expiry Date, for total gross to proceeds to the Company of approximately USD$5.7M. The proceeds from the exercised of the Affected Warrants will be primarily used by the Company to further expand product offerings and customer base as well as for general corporate and working capital purposes.

Because of the exercise of the Affected Warrants, the Company has issued from treasury 3,037,803 new Subordinate Voting shares in the capital of the Company and 4,401.71 new Proportionate Voting shares in the capital of the Company.

The newly issued Subordinate Voting shares in the capital of the Company will be listed and tradeable on the CSE under the Company’s ISIN CA72941N1006.

About Plus Products

PLUS creates low dose and delicious cannabis food products that enhance the everyday lifestyle. PLUS’ mission is to use nature to bring balance to people’s lives - that starts with high-quality, precisely dosed products that deliver consistent experiences. PLUS’ food products, which include gummies and mints in a variety of delectable flavors, are manufactured at PLUS’ 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.

PLUS supports regulation in the cannabis industry and actively collaborates with regulators. The company recently rolled out child-resistant tins a year ahead of the California deadline, and it participates regularly in the National Cannabis Roundtable with John Boehner as honorary chairman.

The CSE does not accept responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news also release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (“forward-looking statements”). Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur and include, but are not limited to, statements relating to the anticipated use of proceeds received from the exercise of the Affected Warrants, the Company’s expansion of product offerings and customer base, the execution of the Company’s strategy, new opportunities, future growth and other such statements.

These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of our products, customer experience and retention, the continued development of adult-use sales channels, managements estimation of consumer demand in in jurisdictions where the Company exports, expectations of future results and expenses, the availability of additional capital to complete capital projects and facilities improvements, the ability to expand and maintain distribution capabilities, the impact of competition, and the possibility for changes in laws, rules, and regulations in the industry. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.


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