PLUS Products (PLUS.C) inked an agreement to partner with TapRoot Holdings, a Las Vegas-based vertically integrated cannabis company, today.
The partnership marks PLUS Products’ first market expansion beyond California. Nevada welcomes 45 million visitors every year from all over the world, making the state a key market to building any internationally recognized brand.
PLUS plans to duplicate its success in California where it both sold over 1 million units in 2018, and had the top two selling cannabis products in a field of 20,000 products, according to BDS Analytics.
“As we look to expand beyond California, we remain committed to producing a consistent product in all jurisdictions. 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,” said Jake Heimark, co-founder and CEO of PLUS.
TapRoot has a 17,000 square foot facility in north Las Vegas to do their extractions and has expanded their capacity to 1.2 million grams of premium cannabis extract per year.
PLUS intends to use TapRoot’s base extraction capabilities as part of their supply agreement and TapRoot will benefit from the economics of the deal through a revenue sharing model. PLUS has also received seven of the 61 newly issued retail licenses in December 2018.
The company’s wants to leverage TapRoot’s facilities, machinery and ingredients to ensure that their product retains the same consistency wherever it is sold.
TapRoot’s base extractions at a glance:
- Produced by hand using 100% organic non-GMO cane alcohol
- Available in a variety of formulations and products
- Perfect balance between artisan craftsmanship and bench top chemistry to further the refinement process
- Clear extracts are refined using state of the art equipment coupled with a decade of cannabis refinement experience
Cannabis edibles have grown popularity in Nevada, developing from 14.5% of recreational sales beginning in Q3 2017 to 18% today.
This is definitely the right time for PLUS to expand its operations.
Not only have cannabis edibles grown in popularity in Nevada, (growing from 14.5% of recreational sales in Q3 2017 to 18% today) but their first year selling recreational cannabis was phenomenal.
The State of Nevada predicted that they would sell $265 million worth of cannabis in their first year, and then blew that mark away by 60% by the end of the year. Now the state is anticipating sales to exceed $600 million in 2020, according to Arcview Market Research.
Full disclosure: PLUS Products is an Equity.Guru marketing client.