Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) to Sell Unsecured Convertible Note Units for up to C$20 Million on Private Placement Basis

• The company has entered into an agreement with a syndicate of agents that will be engaged in the private placement sale; the syndicate is led by Canaccord Genuity Corp.
• A single unit is comprised of one C$1,000 unsecured note that accrues annual interest and 77 common share purchase warrants of Plus Products
• The proceeds will be used for working capital and other corporate purposes

Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF), a leading branded products manufacturer, recently announced that it has entered into an agreement with a syndicate of agents concerning the private placement of unsecured convertible note units, according to a company news release (http://nnw.fm/UjYH8).

The agents, led by Canaccord Genuity Corp. (TSX: CF), have been engaged by Plus Products to sell unsecured convertible note units of up to C$20 million on a private placement basis. Each unit of the company is offered at a price of C$1,000.

A single unit is comprised of one C$1,000 principal amount unsecured note. The note accrues annual interest of eight percent, payable semi-annually in arrears until maturity. Each convertible note will have a maturity date of 24 months from the closing date of the offering. The unit also includes 77 common share purchase warrants of Plus Products.

Every note is convertible into common Plus Products capital shares. The price per conversion share is $6.50 commencing on the date set at exactly one year after the issuance of the note.

The principal amount of the convertible note may be turned into conversion shares at a price equal to the greater of either 95 percent of the volume weighted average price for the Plus Products common shares listed on the Canadian Securities Exchange for the 30-day period right before the conversion date or the conversion price.

Each note will be convertible in tranches that are defined as: one tranche of 33.3 percent starting on the 12-month anniversary of the offering date; a second tranche of 33.3 percent commencing on the 18-month anniversary of the offering date and a final tranche of 33.3 percent that starts at the 24-month anniversary.

Each warrant enables its holder to acquire one common share of Plus Products capital. The exercise price is set at $8 per warrant for a period of five years commencing at the date of the offering. When exercised within the first year, the underlying shares will be subject to a contractual hold of 365 days.

The convertible notes will be unsecured Plus Products obligations. The syndicate of agents has been granted an option to purchase an additional 3,000 convertible note units at any time in the 48 hours before the offering date. These additional convertible note units represent 15 percent of the gross proceeds.

The offering’s closing date is anticipated on February 19, 2019.

All proceeds from the offering will be used for the generation of Plus Products working capital, as well as for additional corporate purposes.

Plus Products is one of the leading edibles brands in California, where it ranked as the number one edibles branch in Q3 2018 (http://nnw.fm/y8dTP). The company’s product rage consists of cannabis-infused edibles that sell on both the regulated medicinal and adult-use recreational markets. Plus Products is currently one of the fastest-growing edible companies in the Golden State.

The company aims to make cannabis approachable and safe by focusing on manufacturing high-quality products and continuing to pursue innovation in the cannabis-infused edibles niche.

For more information, visit the company’s website at www.PlusProducts.com

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