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I got in to Lowell too early so distracted by Hollister I did not pay attention to the timing of the earnings call :( it tanked 20% lol! I am still happy with the switch as Lowell is focusing on their brand presence nation wide and has established itself and has recognition in California. The big boys will be selling these small companies at a loss during December to counter act the capital gains they made on names like Tesla and Amazon. They use the loss to offset the gains so they will dump more through December. They have to wait month and 1day to buy them back so if you pick them up mid December I think you will get them on sale. I would have done that but there was such rumour that the legislation on cannabis was getting real movement I did not want to be on the sidelines. My bad not paying attention to the earnings date. Buy the rumour sell the news…. I bought just before the drop. Investing in this space is not for the faint of heart but the pay off on the right picks will be enormous!
Very unfortunate indeed. Your concering post saved me some anguish as I was considering a small starter purchase of Hollister. I was impressed with what they had built so far, but agree that the new board is not impressive with what looks like dillutive and clandistine objectives. I will look at Lowell, however, I do own some Columbia Care and have been watching Ideanomics for some time. I wish I had more capital but I am streched thin for a while, maybe well past the holidays.
Do take profits, a half a loaf is better than no loaf!
Best of luck to you.
It is very unfortunate. I really like what Hollister has done to this point. Really unimpressed with the new management. I chose Lowell (US cannabis brand) Columbia Cares (US MSO) and Ideanomics (a green tech, wireless charging, blockchain, and finance play) All primed for growth. In my opinion IDEX is ready to squeeze so if anyone gets in there, make sure to take profit on the way up! Don’t be greedy ;) I have to remember to take my own advice lol!
I think that is a good decsion, considering the recent new BOD moves that were not common shareholder friendly.
I had HSTRF on my watchlist and was considering a small starter share purchase. Your recent post casued me to research the latest Hollister news and was really turned off oh thier direction.
Best of luck to you and hope you find a better option for that freed up cash.
After a week and a half of trying unsuccessfully to get an answer my patience has run out. I have sold all my shares in this company. I will keep them on watch but am going to deploy those funds elsewhere for the time being. I wish you well if you are staying long here :)
I have seen many shenanigans in this space which is why I stay watchful. The industry is a challenging one and outside the box thinking is often necessary. We are on the cusp of dramatic change on the regulatory front that will help all US cannabis businesses. I am a long time holder of this stock and have a vested interest in its success. I am not willing to have new management take my investment and magically give themselves a 1000:1 advantage over me. If they have a decent rationale for the change I want to hear it. If they will increase my share count with theirs I will let them. I am awaiting their response now but I will not wait much longer. Their response will dictate my next steps. Anyone else in my predicament?
My interpretation is that first, the Ontario Securities Commission has granted Hollister an exemption from certain provisions governing disclosure and other matters applicable to issuers with outstanding "restricted securities." Those restricted securities will be what is sometimes referred to as differentiated voting rights (DVR). These will be special shares owned by new management, allowing 1000 votes per share. This allows the new Board of Directors an iron fisted control of the company, it would prevent hostile takeover but also perhaps open the door for major dilution. The Ontario Commission ruling, will allow Hollister to legally not report to average common shareholders, activities associated with those DVR shares.
When I read, "In addition, each proportionate voting share will be convertible into 1,000 common shares," in my opinion I think it really could get ugly.
The yahoo link goes into great detail about the new board and "rebranding." I have to wonder if they will dilute the hell out of this company, rebrand and RS. I decided to take this one off the watch list, I just don't like the set up here.
However, this is just my opinion, my interpretation. I've been wrong before but these new developmengs make me uneasy. Best of luck to you.
https://www.blackrock.com/corporate/literature/whitepaper/blackrock-the-debate-on-differentiated-voting-rights.pdf
https://finance.yahoo.com/news/hollister-biosciences-inc-announces-strategic-120000974.html
https://www.prnewswire.com/news-releases/hollister-announces-receipt-of-decision-from-ontario-securities-commission-301413835.html
VANCOUVER, BC, Nov. 2, 2021 /PRNewswire/ - Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the "Company", "Hollister Cannabis Co." or "Hollister") is pleased to announce that in connection with its upcoming annual general and special meeting of shareholders (the "AGM"), the Company has received an order from the Ontario Securities Commission granting Hollister an exemption from certain provisions governing disclosure and other matters applicable to issuers with outstanding "restricted securities". So
As further described in the Company's management information circular dated October 18, 2021, if the shareholders of the Company approve the creation of a new class of shares designated as proportionate voting shares, the common shares of the Company will become "restricted securities" upon filing a notice of alteration to Hollister's articles in accordance with the provisions of the Business Corporations Act (British Columbia). While the proportionate voting shares will have more voting rights, on a per share basis, than the common shares, the voting rights will be proportionate with the economic rights of such class.
If approved at the AGM, holders of proportionate voting shares will be entitled to 1,000 votes in respect of each proportionate voting share held. No dividend will be declared or paid on the proportionate voting shares unless the Company simultaneously declares or pays, as applicable, equivalent dividends (on an as converted to common share basis) on the common shares. In addition, each proportionate voting share will be convertible into 1,000 common shares.
Does anyone have an understanding of the preferred structure they are proposing? The purpose of it? And how to convert if you choose it? It has to be done by the 18 of this month if I read it correctly. It is very convoluted to me…. The way I read it, you take certain steps to turn 1 common share into a preferred share which gives 1000 votes to it after the change, then it can be converted back to 1000 common shares. It seems odd. Why not just do a split? Diluting will still drop the price no matter what they call the shares. I have mot seen this before.
Last prisoner project, Blues Brothers
https://cannabisnow.com/blues-brothers-benefit-concert-reels-in-over-70000/
Me too. I particularly like the fact Carl is positive about the changes. It looks like this is a coordinated move to take the company to the next level. These are exciting times
happyglass, this news release makes me very very hopeful.
I think our time is getting nearer very quickly!
Hollister Biosciences Inc. Announces strategic initiatives including a planned rebrand, executive and board updates
10/12/2021 08:01 AM ET
VANCOUVER, BC, Oct. 12, 2021 /PRNewswire via COMTEX News Network/ -- -- Jake Cohen appointed as CEO
-- Eula Adams, MBA, CPA appointed as Interim CFO and a nominated Board Member
-- Chris Lund appointed as Chief Commercial officer
-- Corporate rebrand initiated
-- Operations enhancements internalizing finance, administration and marketing
-- Appointment of new board members
Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the "Company", "Hollister Cannabis Co." or "Hollister") is pleased to announce a series of operational and strategic updates to create shareholder value, enhance; governance, operations and market positioning while preparing the Company for the next phase of its growth.
Background
In November 2019, the Company completed its initial public offering and listed its shares on the Canadian Securities Exchange. At the time of the offering, Hollister was pre-revenue; its business plan was focused on the California market, it was an ambitious start-up in an emerging industry. The Company launched with administration and management primarily consisting of third party providers to enable focus on the rapid advancement of its operational and financial objectives while keeping costs in line with capitalization and profitability goals.
In March 2020, the Company completed its acquisition of Labtronix, Inc. d/b/a Venom Extracts ("Venom Extracts") which transformed the Company into a multi-state operator and substantially enhanced its revenue, capabilities and reach. Hollister has since transformed from its pre-revenue position in late 2019 into a profitable multi-state cannabis operator. The Company has garnered a leadership position and deep penetration in a high growth limited market. The Company is among the leaders in operational efficiency, return on invested capital and has built a platform designed to scale. Most recently, the company announced revenue guidance for 2021, a Brand Campus to enhance its presence and profitability in Arizona, and two new members to the Board of Directors (the "Board") as catalysts to lead the next phase of growth. The Company has a strong balance sheet with approximately US$12 million in working capital and no long term debt.
In advance of the upcoming annual general and special meeting of shareholders (the "AGM"), the Company has made a number of strategic enhancements to align governance, leadership, operations, management and infrastructure with its refocused strategy. The refocused corporate and brand strategy is primarily centered on the growth and distribution of owned and partner brands into new states and product categories.
"We plan to internalize functions that were previously outsourced including; communications, finance, accounting, management, investor relations, public relations, marketing, sales and strategy. Building internal capabilities for these functions will enable us to effectively communicate with stakeholders and market influencers, enhance governance and accelerate growth." said Jakob Ripshtein, Chairman of the Board.
Brand and Communications Strategy
The Company has initiated a rebrand, including seeking a new corporate name and visual identity. The brand is being created to represent a focused vision towards becoming a leading house of brands with a mission to empower consumers with access and a variety of trusted cannabis packaged goods. The Company is planning a robust marketing and communications strategy to increase awareness throughout the investor community and for increased distribution of products and brands.
"As Chairman of the Board, I am pleased to announce the "house of brands" focused strategy and enhanced marketing efforts. I have a long history working in similar environments in the cannabis and the spirits industry during my time with Aphria (now Tilray) and Diageo. We possess the attributes of a leading player; profitable, low operating costs, strong balance sheet and hold extensive capabilities and brand equity in high growth categories. I look forward to accelerating the expansion of our owned and partner brands throughout the U.S. and eventually globally" said Jakob Ripshtein.
Executive Updates
Chief Executive Officer
Effective immediately, Carl Saling has resigned as Chief Executive Officer and Director of the Company and has been appointed Senior Advisor to the Board. The Company thanks Carl for his leadership and vision and looks forward to his continued participation and friendship with the Company.
Jake Cohen, the Chief Operations Officer of the Company has been appointed as Chief Executive Officer and a member of the Board effective immediately. Jake is the founder of Venom Extracts, one of the industry's premier award-winning cannabis concentrate brands. Venom Extracts sales were consolidated with Hollister's sales starting after the closing in March 2020 and contributed approximately 95% of the Company's overall sales. Venom Extracts' product suite is a category leader in Arizona with over 4 million grams of cannabis sold in 2020, accounting for up to 30% of category sales state-wide (per BDS Analytics). Venom Extracts has strong brand recognition and distribution, with products in the vast majority of dispensaries in Arizona.
"I'm humbled and excited to take on this challenge. I have great respect and admiration for Carl as an individual and business leader. He IPO'd Hollister at a very challenging time in the public markets, managed expenses unlike any other public company I've seen, and ensured the platform was capitalized and had a team ready for rapid growth. Since the acquisition of Venom Extracts, Carl has been invaluable to the growth of both Venom Extracts and myself individually - I'm proud to now take the torch and execute the strategy going forward. I look forward to Carl's continued support as an advisor, he's done a great job preparing for the evolution of the Company" said Jake Cohen, Chief Executive Officer of Hollister.
"This is an exciting time for me as a founder. I've seen the transformation of an idea that started at my family's kitchen table develop into a leading multi-state cannabis company going from no sales in 2019 to USD$70 million projected for 2021. Over the course of several months we have been preparing for these changes, and I'm pleased to have recruited the team that will lead its next phase, most notably with "passing the baton" to Jake Cohen. While supporting Venom Extracts' growth, Jake and I had the opportunity to work closely. Throughout my 30 years in business I've worked with many great entrepreneurs, none have the tenacity, drive and natural capabilities that I've seen in Jake. He is a winner and I look forward to continuing to support him in my new role as senior advisor" said Carl Saling, former Chief Executive Officer of the Company.
Chief Financial Officer
Eula Adams, MBA, CPA has been appointed as Interim Chief Financial Officer effective immediately and will be nominated for election at the AGM to serve as a member of the Board. In conjunction with his appointment, Mr. Adams plans to temporarily relocate to Phoenix to ready the financial and operational systems of the Company for expansion. As a priority, Mr. Adams will oversee recruiting a permanent Chief Financial Officer and Chief Operations Officer for the Company.
Eula has had a highly accomplished career spanning five decades across a variety of industries serving public, private, government and philanthropic causes. He has an extensive history in executive leadership and governance roles of large, diverse organizations. Most recently, Eula served as a member of the board of directors and Chairman of the Audit Committee for Harvest Health & Recreation Inc. from December of 2019 through the recent completion of its acquisition by Trulieve Cannabis Corp. (CSE:TRUL), which formed the world's largest legal seller of cannabis by revenue.
Eula is a graduate of Morris Brown College with a Bachelor of Science degree in accounting, a Master of Business Administration from Harvard Business School, and is a Certified Public Accountant. He spent 20 years with Deloitte (Public Accounting, Taxation and Management Consulting), was the former Executive Vice President of First Data Corporation (Payments and Money Transfer); the former Senior Vice President of Sun Microsystems (Computer Servers, Storage Devices, Software and Services); and a former member of board of directors of MasterCard (U.S. Region). His corporate rise led him to be named one of the 50 most powerful black executives by Fortune in July of 2002.
He serves a number of public sector and non-profit positions and his memberships include: American Institute of CPAs; White House Historical Association National Council; Colorado Society of CPAs; United Way of Colorado; Board of Directors Grow Generation; Congressional Black Caucus Foundation; Sigma Pi Phi Fraternity; Kappa Alpha Psi Fraternity; CareerWise Colorado Board; Volunteers of America Board; Denver International Airport Advisory Board; Colorado Department of Transportation; and New Hope Baptist Church Board of Trustees.
Chief Commercial Officer
Mr Chris Lund has been appointed as the Chief Commercial Officer of the Company effective immediately. He will lead all communications, sales, marketing and branding for the Company and its subsidiaries. As his first initiative, Chris will oversee the rebrand and prepare a strategy for owned and partner brand expansion.
Chris brings more than 30 years experience of comprehensive brand building to the organization. He has played a hands-on role in guiding brand strategy, creative development, product commercialization and go-to-market execution of innovative products and services. As founder and Chief Executive Officer of Perennial Design, Chris played a key role consulting to and acting in advisory roles with iconic brands such as RBC, Loblaw Companies Ltd., McKesson, Home Depot, Bauer, Coca-Cola, Morrisons and Ahold Delhaize, and extended the reach of Perennial's influence by establishing an office in Bangalore, India, serving clients such as Spencer's, Easyday, and HyperCity.
"I am super-excited to be working on the rebranding project, and leading commercial strategy going forward. This industry is growing fast, globally, and the Company has the foundation to become a formidable house of brands." says Chris Lund
Senior Vice President of Finance & Administration
Jill Karpe has been promoted to Senior Vice President of Finance and Administration of the Company effective immediately. Since 2017, Jill has led the finance, administration and compliance oversight functions for Venom Extracts. She has been responsible for all bookkeeping duties, including cash verifications, payments to vendors and payroll. Jill also maintains all human resource, office management and administrative functions for Venom Extracts. She brings 20 years of experience in the financial industry, specifically 10 years in banking and underwriting. Jill's vast knowledge in finance combined with her Bachelors Degree in Organizational Leadership from Bethel University have made her a powerhouse for managing and organizing both people and numbers.
Board of Directors
In connection with the Company's efforts to improve governance, investor confidence and market performance, the Board has been refreshed and is now comprised of primarily independent directors, each having leadership and governance experience with relevant attributes to assist in the continued growth of the Company.
In addition to Mr. Jake Cohen, the Company has appointed Ms. Lily Dash and Mr. Brett Mecum to the Board, each of whom will be nominated for election at the AGM along with Mr. Eula Adams. These new appointments supplement the recent appointment of Mr. Jakob Ripshtein and Mr. Kevin Harrington to the Board last month.
Mr. Jakob Ripshtein, CPAJakob is the Chairman of the Board. Jakob served as the President of Aphria Inc. ("Aphria"), which was acquired by Tilray, Inc. (NASDAQ: TLRY), one of the largest cannabis companies in the world, and played an instrumental role in its growth throughout Canada, global product innovation and the integration of global supply networks. He joined Aphria after spending years as the Chief Financial Officer of Diageo North America ("Diageo") (NYSE:DEO) and President of Diageo Canada, the multinational beverage giant behind such global brands as Johnnie Walker, Don Julio, Guinness, Baileys, Smirnoff and Captain Morgan. Prior to Diageo, Mr. Ripshtein held a variety of roles in finance, sales and strategy in various global companies and has been based in Canada, the U.S. and the U.K. Earlier in his career, Mr. Ripshtein oversaw business, sales and tax functions in the Canadian spirits, pharmaceutical and financial sectors. Mr. Ripshtein holds a Bachelor of Business Administration from York University, as well as a CPA and International Tax designation. Mr. Ripshtein is currently the Chief Executive Officer of Perennial Brands Inc, a full life-cycle brand strategy organization.
Mr. Kevin Harrington Kevin is a veteran CEO, bestselling author and platform-building entrepreneur known to millions as one of the original "sharks" on the 4x Emmy-winning ABC series Shark Tank. His many landmark achievements include inventing the infomercial, pioneering the As Seen on TV brand, co-founding the Electronic Retailers Association (ERA), serving as a co-founding board member of the Entrepreneurs' Organization (EO) and creating HSN Direct as a joint venture with the Home Shopping Network. Twenty of his companies have each topped $100 million in revenue, and his behind-the-scenes work has helped produce billions more in global sales. He's launched massively successful products like The Food Saver, Ginsu Knives, The Great Wok of China, The Flying Lure, and many more. He has worked with amazing celebrities like Billie Mays, Tony Little, Jack Lalanne, and George Foreman to name a few. Kevin then built on that success to help pioneer the As Seen on TV brand.
In 2013 after divesting of the As Seen on TV brand, Kevin joined the board of directors of an emerging start-up in the functional beverage space; Celsius Holdings Inc. (NASDAQ: CELH) ("Celsius"), which at the time had a share value of $0.22 and a total market cap of less than $10 million. Since then, Celsius grew into a leading brand in the functional and energy beverage categories. Kevin served on the board of directors of Celsius until August 19th, 2021. Today, Celsius is valued at greater than $7.2 billion, and the share price is greater than $94 per share.
Lily Dash, ESQLily has been appointed as a member of the Board effective immediately. Her background includes extensive governance, legal, transactional and emerging markets experience. Lily is a practicing lawyer, a dynamic entrepreneur with global experience, and a visionary technology and ESG founder. Lily's vast experience and perspective will support the Company's growth and expansion. Lily is a Chairwoman of the Board of Directors of Polymath Inc, Member of the Board of Directors of Earth Wallet, and Founder of Villabound Inc., Rexy Inc., and Co-Founder of WiFetch Inc.
Brett MecumBrett has been appointed as a member of the Board effective immediately. He is an innovative and seasoned government relations professional with a record of success at the federal, state, and local level throughout the country. He is known for an ability to build long term relationships, collaborate with stakeholders, and engage organizational grassroots to ensure legislative policy goals are met. He is an expert at understanding legislative processes, bill drafting, and budget appropriations at all levels of government, and is an experienced political operative and fundraiser with expertise running high energy and high-profile political campaigns, political action committees, and independent expenditure committees.
Brett is the Chief Executive Officer of a full-service government relations firm representing corporate, association, and non-profit sector clients in 12 state legislatures through policy development of short and long-term legislative objectives. He has managed 20+ programs that provide meaningful engagement for association members with lawmakers, successfully ended increased taxation schemes on Premium Cigars in Minnesota, Nebraska and New York; curbed new over-regulation of the premium cigar industry in Oklahoma and was the only lobbyist to successfully amend the Arizona Medical Marijuana Act with implementation of testing protocols and new regulatory enforcement of the industry by the Arizona Department of Health Services. Brett is also regarded as a policy expert in the Blockchain and Cryptocurrency space and was the catalyst behind the state of Arizona creating it's first Blockchain and Cryptocurrency task force.
Additional Information
The Company's AGM will take place on November 22, 2021. Further details related to the AGM will be provided in a management information circular to be mailed to shareholders and filed on the Company's profile on SEDAR at www.sedar.com. In connection with the appointments the Board, the Company also accepted the resignation of Mr. Anthony Zelen and Ms. Amasa Lacy from the Board and wishes to thank each for their service.
In connection with the various new appointments, the Company issued 4,375,000 stock options to acquire common shares (the "Shares") with an exercise price equal to C$0.22 expiring on October 11, 2026. In addition, pursuant to an employment agreement with Mr. Jake Cohen, the Company has agreed to make certain bonus payments in the event of the successful expansion of the Company's business into new states. Such bonus payments will be satisfied by the issuance of Shares at then current market prices upon achievement of the various milestones.
Amasa Lacy has resigned as Vice President of Production and Director and has been appointed Senior Advisor to the Board. We thank Ms. Lacy for her support and vision in getting the company to where it is today.
As a result of the management changes, the Company has discontinued the services provided by 2710989 Ontario Limited. Alex Somjen and Geoff Balderson have also resigned as President and Chief Financial Officer, respectively. The Company thanks Alex and Geoff for their service. In September, the Company also suspended activities at Dreamy Delivery in Oakland and Sacramento in an effort to reduce costs and align operations with the refocused corporate strategy.
About Hollister Biosciences Inc.
Hollister Biosciences Inc. is a multi-state cannabis house of brands with a portfolio of innovative, high-quality consumer packaged products. The Company produces its own branded products and provides white-labeling manufacturing for other leading brands. The Company's products are sold in 370 dispensaries across Arizona and California. Venom Extracts, a wholly-owned subsidiary of the Company is a category-leader which sold over 4 million grams of cannabis in 2020, accounting for up to 30% of dabbable concentrate category sales in Arizona.
Products of the Company include Venom Extracts branded concentrates; shatter, budder, crumble, distillates, and HashBone, a premier artisanal hash-infused pre-roll, along with solvent-free bubble hash, branded and white-label pre-rolls, tinctures, vape products and full-spectrum high CBD pet tinctures.
Website: www.hollisterbiosciences.co
I agree and I've accumulated a boatload of this one. Only a matter of time.
It is such a rare opportunity that retail gets access before institutions. I am very grateful to the backward american legislation. It gives me time to accumulate. We do not have to wait much longer here.
JohnCM, bullseye. That is exactly the problem. The fundamentals are awesome. No debt, low operating expense, improving margins, EBITDA positive, but it's on the pinks so the stock price is relentlessly manipulated. Hopefully, eventually the growing revenues and EBITDA will put enough buying pressure to get this up where they can uplist.
Hollister Biosciences Inc. Announces Appointment of Two New Board Members; Kevin Harrington, an original "Shark" from the NBC hit TV series "Shark Tank" and Jakob Ripshtein, the former CFO of Diageo North America and President of Aphria
Published: Aug. 31, 2021 at 8:01 a.m. ET
VANCOUVER, BC, Aug. 31, 2021 /PRNewswire via COMTEX/ -- VANCOUVER, BC, Aug. 31, 2021 /PRNewswire/ - Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the "Company", "Hollister Cannabis Co." or "Hollister") is pleased to announce the appointment of two new members to its Board of Directors: Mr. Kevin Harrington and Mr. Jakob Ripshtein.
Mr. Kevin Harrington is a veteran CEO, bestselling author and platform-building entrepreneur known to millions as one of the original "sharks" on the 4x Emmy-winning ABC series Shark Tank. His many landmark achievements include inventing the infomercial, pioneering the As Seen on TV brand, co-founding the Electronic Retailers Association (ERA), serving as a co-founding board member of the Entrepreneurs' Organization (EO) and creating HSN Direct as a joint venture with the Home Shopping Network. Twenty of his companies have each topped $100 million in revenue, and his behind-the-scenes work has helped produce billions more in global sales. He's launched massively successful products like The Food Saver, Ginsu Knives, The Great Wok of China, The Flying Lure, and many more. He has worked with amazing celebrities like Billie Mays, Tony Little, Jack Lalanne, and George Foreman to name a few. Kevin then built on that success to help pioneer the As Seen on TV brand.
In 2012 after divesting of the As Seen on TV brand, Kevin joined the Board of Directors of an emerging startup in the functional beverage space Celsius Holdings Inc. (NASDAQ: CELH) ("Celsius"), which at the time had a share value of $0.22 and a total market cap of less than $10 million. Since then, Celsius grew into a leading brand in the functional and energy beverage categories, and Kevin served as a member of the Board of Directors until August 19th, 2021. Today, Celsius is valued at greater than $5.4 billion, and the share price is greater than $72 per share.
"The cannabis industry is growing quickly. I've had many operators ask for my participation and support, Hollister is the one I chose due to its fundamentals, people, growth, and platform approach to success. I'm excited to play a role in the next evolution and expansion of both the industry and the Company. There is an opportunity to make a large impact -- that's the fun part," said Kevin Harrington
Mr. Harrington will serve as Chairman of the Company's Advisory Board as well as a member of the Company's Board of Directors.
Mr. Jakob Ripshtein, CPA served as the President of Aphria Inc. ("Aphria"), which was acquired by Tilray, Inc. (NASDAQ: TLRY), one of the largest cannabis companies in the world, and played an instrumental role in its growth throughout Canada, global product innovation and the integration of global supply networks. He joined Aphria after spending years as the Chief Financial Officer of Diageo North America Inc. ("Diageo") and President of Diageo Canada, the multinational beverage giant behind such global brands as Johnnie Walker, Don Julio, Guinness, Baileys, Smirnoff and Captain Morgan. Prior to Diageo, Mr. Ripshtein held a variety of roles in finance, sales and strategy in various global companies and has been based in Canada, the U.S. and the U.K. Earlier in his career Mr. Ripshtein oversaw business, sales and tax functions in the Canadian spirits, pharmaceutical and financial sectors. Mr. Ripshtein holds a Bachelor of Business Administration from York University, as well as a CPA and International Tax designation. Mr. Ripshtein is currently CEO of Perennial Brands Inc, a full life-cycle brand strategy organization.
"From a practical perspective, few companies possess the financial strength and growth prospects of Hollister and remain undervalued comparatively to their peers. It is highly uncommon in this industry to see a company with such low operating costs, no debt, and scalable platform and prospects. I enjoyed working with Aphria in its transformative stage, and now look forward to leading the Board of Directors of Hollister as Chairman in its exciting transformation to become a formidable global competitor," adds Jakob Ripshtein.
Mr. Ripshtein will serve as Non-Executive Chairman of the Company's Board of Directors and as Chairman of the Company's audit committee.
Advisory Board Formation
The Company is proud to share that, in addition to being a member of the Board of Directors, Kevin Harrington will be the Chairman of the newly formed Advisory Board. In his role as Chairman, Kevin will support the recruitment and development of the advisory board and play an active role supporting strategic growth of the Company in its next phase of development.
"Transforming our platform into a global leader requires enhancing our founding team with visionary operating, financial and brand leaders. Building the best possible team requires ongoing effort, our team took another major step forward with the addition of these world class forward-thinking innovators on our Board of Directors. Both Jakob and Kevin offer invaluable perspective and expertise in pursuit of our Company's goals," stated Carl Saling, Co-Founder, CEO and Director of Hollister.
In connection with the appointment of Mr. Harrington and Mr. Ripshtein, the Company issued 6,000,000 stock options to acquire common shares with an exercise price equal to C$0.27 expiring on August 30, 2026.
In connection with the appointment of Mr. Harrington and Mr. Ripshtein to the Board of Directors, the Company also announces the resignation of Mr. Patrick Morris from the Company's Board of Directors and wishes to thank Mr. Morris for his service.
About Hollister Biosciences Inc.
Hollister Biosciences Inc. is a multi-state company with a portfolio of innovative, high-quality cannabis & hemp branded consumer products and white-labeling manufacturing. Our products are sold in 370 dispensaries across Arizona and California. Hollister Biosciences wholly-owned brand, Venom Extracts, is a category-leading brand that sold more than 4 million grams in 2020, accounting for up to 30% of category sales in Arizona.
Products from Hollister Biosciences Inc. include HashBone, the brand's premier artisanal hash-infused pre-roll, along with concentrates (shatter, budder, crumble), distillates, solvent-free bubble hash, pre-packaged flower, pre-rolls, tinctures, vape products and full-spectrum high CBD pet tinctures. Our wholly-owned California subsidiary Hollister Cannabis Co is the 1st state and locally licensed cannabis company in the city of Hollister, CA, birthplace of the "American Biker".
Website: www.hollisterbiosciences.co
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain "forward-looking information" as defined under applicable Canadian securities legislation, including statements regarding the plans, intentions, beliefs, and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding: the impacts of the changes to the Company's board and the establishment of the advisory board; and expectations for other economic, business, and/or competitive factors. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information.
Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance, or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; compliance with extensive government regulation; public opinion and perception of the cannabis industry; the impact of COVID-19; and the risk factors set out in the Company's annual information form dated August 28, 2020, filed with Canadian securities regulators and available on the Company's profile on SEDAR at www.sedar.com.
The Company, through several of its subsidiaries, is indirectly involved in the manufacture, possession, use, sale, and distribution of cannabis in the recreational and medicinal cannabis marketplace in the United States. Local state laws where the Company operates permit such activities however, investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the US Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable US federal money laundering legislation.
While the approach to enforcement of such laws by the federal government in the United States has trended toward nonenforcement against individuals and businesses that comply with recreational and medicinal cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve the Company of liability under US federal law, nor will it provide a defense to any federal proceeding which may be brought against the Company. The enforcement of federal laws in the United States is a significant risk to the business of the Company and any proceedings brought against the Company thereunder may adversely affect the Company's operations and financial performance.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information, which speak only as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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SOURCE Hollister Biosciences Inc.
Hollister Biosciences Inc. Reports Q2 2021 Financial Results including USD $17.6 million revenue, and USD $3.2 million of Adjusted EBITDA
Published: Aug. 26, 2021 at 9:05 a.m. ET
Q2 revenue was USD $17.6 million compared to USD $8.5 million in the second quarter of 2020 and USD $23.1 million in the first quarter of 2021
Q2 net income was USD $1.6 million compared to USD $0.3 million in the second quarter of 2020 and USD $2 million in the first quarter of 2021
Adjusted EBITDA(1)was USD $3.2 million in the second quarter compared to USD $0.5 million in the second quarter of 2020 USD$2.8 million in the first quarter of 2021
2021 revenue target of USD $70 million(2)
VANCOUVER, BC, Aug. 26, 2021 /PRNewswire/ - Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the "
Company", "Hollister Cannabis Co." or "Hollister") a diversified cannabis branding company reported its financial and operating results for the second quarter of 2021. All financial information is presented in U.S. dollars unless otherwise indicated.
VANCOUVER, BC, Aug. 26, 2021 /PRNewswire via COMTEX/ -- Second Quarter 2021 Financial Results
Total revenue in the second quarter was $17.6 million compared to $8.5 million in the second quarter of 2020 and $23.1 million in the first quarter of 2021
Gross profit in the second quarter was $4.3 million, compared to $1.5 million in the second quarter of 2020 and $3.6 million in the first quarter of 2021
Gross profit margin in the second quarter was 25%, compared to 18% in the second quarter of 2020 and 16% in the first quarter of 2021
Net income in the second quarter was $1.6 million compared to $2 million in the first quarter of 2021
Adjusted EBITDA(1) in the second quarter was $3.2 million compared to $2.8 million in the first quarter of 2021
Second Quarter 2021 Business Highlights
On April 5th, 2021, Hollister announced that it entered into an exclusive partnership with Nabis, one of California's leading distributors, to streamline sales, grow retail opportunities and reduce wholesale delivery times on all orders
On April 8th, 2021, Hollister announced that the Hollister, Easyriders collaboration officially launched its first product in the market with premium pre-roll packs in silver or black collectible tins featuring the iconic Easyriders logo available in dispensaries throughout California
On May 17th, 2021, Hollister announced that the Company and Heavy Grass have partnered with Slipknot co-founder Shawn "Clown" Crahan for special-edition HashBone packs featuring six half-gram pre-rolls and matches in a soft-touch matte black case.
On June 28th, 2021, Hollister announced that it commenced pre-roll production and distribution in Arizona to complement the Company's existing cannabis concentrate product suite in the state through its wholly owned Labtronix, Inc. d/b/a Venom Extracts ("Venom") subsidiary.
Recent Developments
Brand Campus - On August 25th, 2021(Press Release) the company announced its Hollister Brand Campus in Arizona, a site dedicated to supporting the development of company-owned and third-party brands development in Arizona. The Hollister Brand Campus includes more than 700,000 square feet of cultivation area and a 28,500 square foot processing facility. The addition of the Hollister Brand Campus supports the Company's goals to increase gross profit margin and diversify product offerings.
ERP System - The Company has enabled the Viridian enterprise resource planning "ERP" solution for its California operation and intends to expand it company-wide to maximize efficiencies and help drive profitable growth. This system is designed to improve accounting and reporting functionality and the implementation has occurred over the last 7 months.
EVP of Cultivation - Along with the announcement of the Hollister Brand Campus in Arizona, the Company appointed Damian Solomon as Executive Vice President of Cultivation. Damian has more than 20 years' experience with greenhouse and indoor vertical-farming systems. In 2014 he focused on the emerging cannabis industry by consulting the first two license holders in Canada: Tilray and Tweed. Since then, he has supported more than 30 projects in North America, Europe, Israel and Australia with notable companies like Harvest Health & Recreation, Glasshouse Farms, Grassroots Cannabis, Cronos, DOJA (now Canopy), Flower One, Global, Indus Holdings, Natura Life Sciences, Pacific Dutch Group, Raw Garden, TerrAscend, Caliva, The Pharm/Sunday Goods and Wonderbrett. He also served as a member of the advisory board for Node Labs/Compound Genetics, Calyx Peak Companies and LOBO Cannagar.
Outlook
The sales normalization between Q1 2021 and Q2 2021 was mainly attributable to excess inventory levels at our wholesale brand and dispensary partners in Arizona. The adult-use market started sales in January of 2021 several months ahead of the anticipated start date. Venom supplies bulk wholesale oils and finished products to 40 different brands and this segment of the business had rapidly increased as brands readied inventory for their dispensary partners. In the first quarter, a substantial portion of revenue was derived from the sale of bulk wholesale products to brands serving the anticipated adult use demand.
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In the second quarter, as brands and dispensaries normalized inventory, the Company's higher margin branded products and white-label products were a larger portion of overall revenue. Additionally, access to raw materials has been a challenge for the Company as demand increased across the market. Prices for raw materials are at an all-time high and availability is scarce. The Company is confident in its ability to reduce costs and improve gross margins and access due to its recently announced Hollister Brand Campus.
The Company continues to see tremendous growth opportunities in its core market of Arizona and beyond and is targeting $70 million revenue for 2021(2) The anticipated increase in quarterly revenues for the latter half of 2021 is expected to be derived from an increase in Venom branded product sales as well as an increase in Venom's white label business. In addition, the Company's leadership position and platform developed in the Arizona market, creates optionality for expansion of additional products and brands in both Arizona and other markets. All figures reported with respect to the year ending December 31, 2021, are "financial outlooks" within the meaning of applicable Canadian securities laws, are based on several assumptions and are subject to a number of risks and uncertainties. Actual results may differ materially. Accordingly, investors are cautioned not to place undue reliance on the foregoing information. See "Cautionary Statement Regarding Forward-Looking Information".
The Company plans to continue focusing on its core growth areas which include enhancing existing product margins, expanding product penetration and same-store sales in California and Arizona and continuing to diversify and expand its branded product portfolio. Operating expenses in the second quarter were approximately 10% of revenue which is a testament to the Company's continued prudent management of expenses.
Management Commentary
"Our second quarter results demonstrate continued momentum to increase profitability as we focus on scale and expansion of higher margin branded and finished products,'' said Chief Executive Officer Carl Saling. "We are focused on operational and financial functions for an improvement in gross margins and expanding penetration and same store sales. We are very pleased with the operational and financial advances made so far in 2021 and look forward to continued growth in our core market and beyond."
Venom Extracts Highlights
The Venom product suite is a category leader in Arizona, accounting for up to 30% of category sales state-wide. Venom is positioned for continued growth in Arizona, it has a strong brand recognition and distribution network, with products in the vast majority of dispensaries statewide. Venom operates an 11,000 square foot facility located in Phoenix, Arizona.
Arizona is one of the largest medical marijuana markets in the world with over $1B in 2020 sales. Legal sales of adult-use cannabis in Arizona commenced midday on Friday January 22, 2021, several months ahead of industry expectations, and the fastest that any of the 15 states with recreational marijuana has gone from voter approval to actual sales. The state realized over $2.9M in recreational sales within 10 days of legalization. "Marijuana Business Daily projects that the state's recreational market could generate up to $400 million in revenue its first year and more than $700 million by 2024."
Use of Non-IFRS Financial Measures
This press release includes references to "Adjusted EBITDA", which is a non-IFRS financial measure. A reconciliation of Adjusted EBITDA to the most directly comparable financial measure presented in accordance with IFRS is included below. This information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with IFRS. Management uses Adjusted EBITDA to evaluate the Company's operating performance and trends and to make planning decisions. The Company believes that Adjusted EBITDA helps identify underlying trends in the Company's business that could otherwise be masked by the effect of the items that are excluded. Accordingly, management believes that Adjusted EBITDA provides useful information to investors and others in understanding and evaluating the Company's operating results, enhancing the overall understanding of the Company's past performance and future prospects and allowing for greater transparency with respect to key financial metrics used by management in its financial and operational decision-making.
Reconciliation of Non-IFRS Financial Measures
The table below reconciles Net income (loss) to Adjusted EBITDA for the periods indicated.
Three months ended
June 30,
Six months ended
June 30,
2021
2020
2021
2020
$
$
$
$
Net income (loss) and comprehensive income (loss)
1,596,699
305,377
3,583,501
(1,848,102)
Add (deduct) impact of:
Accretion
-
3,151
-
6,301
Depreciation
327,081
51,954
631,122
129,053
Finance costs
108,423
110,179
209,605
219,861
Foreign exchange gain
-
-
(28,296)
-
Interest expense
2,500
37,500
20,014
50,000
Share-based compensation
240,739
-
240,739
-
Transaction costs
-
-
-
828,100
Interest income
(40,478)
-
(66,088)
-
Gain on sublease
(262,015)
-
(262,015)
-
Income tax expense
1,013,000
-
1,821,000
-
Deferred income tax recovery
(73,000)
-
(128,000)
-
Foreign currency translation adjustment
282,355
2,027
(15,811)
77,740
Adjusted EBITDA (LOSS)
3,195,304
510,188
6,005,771
(537,047)
Notes:
1. This is a non-IFRS reporting measure. For a reconciliation of this to the nearest IFRS measure, see "Use of Non-IFRS Measures".
2. This is forward-looking information and based on a number of assumptions. See "Cautionary Note Regarding Forward-Looking Information"
About Hollister Biosciences Inc.
Hollister Biosciences Inc. is a multi-state company with a portfolio of innovative, high-quality cannabis & hemp branded consumer products and white-labeling manufacturing. Our products are sold in 370 dispensaries across Arizona and California. Hollister Biosciences wholly-owned brand, Venom Extracts, is a category-leading brand that sold more than 4 million grams in 2020, accounting for up to 30% of category sales in Arizona.
Products from Hollister Biosciences Inc. include HashBone, the brand's premier artisanal hash-infused pre-roll, along with concentrates (shatter, budder, crumble), distillates, solvent-free bubble hash, pre-packaged flower, pre-rolls, tinctures, vape products and full-spectrum high CBD pet tinctures. Our wholly-owned California subsidiary Hollister Cannabis Co is the 1st state and locally licensed cannabis company in the city of Hollister, CA, birthplace of the "American Biker".
Website: www.hollisterbiosciences.co
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain "forward-looking information" as defined under applicable Canadian securities legislation, including statements regarding the plans, intentions, beliefs, and current expectations of the Company with respect to future business activities and operating performance. To the extent any forward-looking information in this news release constitutes "financial outlooks" or "future-oriented financial information" within the meaning of applicable Canadian securities laws, the reader is cautioned that this information may not be appropriate for any other purpose and the reader should not place undue reliance on such financial outlooks or future-oriented financial information. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding: the Company's anticipated revenue for 2021; the impact of the Hollister Brand Campus; and expectations for other economic, business, and/or competitive factors. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information.
Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Financial outlooks and future-oriented financial information, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to various risks as set out herein. The Company's actual financial position and results of operations may differ materially from management's current expectations and, as a result, the Company's revenue may differ materially from the revenue target provided in this news release. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance, or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; compliance with extensive government regulation; public opinion and perception of the cannabis industry; the impact of COVID-19; and the risk factors set out in the Company's annual information form dated August 28, 2020, filed with Canadian securities regulators and available on the Company's profile on SEDAR at www.sedar.com.
The Company, through several of its subsidiaries, is indirectly involved in the manufacture, possession, use, sale, and distribution of cannabis in the recreational and medicinal cannabis marketplace in the United States. Local state laws where the Company operates permit such activities however, investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the US Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable US federal money laundering legislation.
While the approach to enforcement of such laws by the federal government in the United States has trended toward nonenforcement against individuals and businesses that comply with recreational and medicinal cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve the Company of liability under US federal law, nor will it provide a defense to any federal proceeding which may be brought against the Company. The enforcement of federal laws in the United States is a significant risk to the business of the Company and any proceedings brought against the Company thereunder may adversely affect the Company's operations and financial performance.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information, which speak only as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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SOURCE Hollister Biosciences Inc.
Hollister Biosciences Inc. Announces 30-Acre Arizona Brand Campus with planned 700,000 square feet of cultivation area and an existing 28,500-square-foot processing and manufacturing facility
Published: Aug. 25, 2021 at 9:00 a.m. ET
The MarketWatch News Department was not involved in the creation of this content.
-- Provides the Company with the ability to enhance gross margins
-- Hiring of Damian Solomon as Executive Vice President of
Cultivation to lead production
-- The capital costs will be funded with cash on hand
-- Expands Arizona revenue growth opportunities for owned and
white-label brands
VANCOUVER, BC, Aug. 25, 2021 (Canada NewsWire via COMTEX) -- Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the "Company", "Hollister Cannabis Co." or "Hollister"), has completed a series of agreements designed to provide expanded revenue, capacity and margins, while offering a diversity of inputs for branded products. The transactions are intended to capitalize on the Company's existing operating footprint and leading position in the rapidly growing Arizona market. This project and associated seed to shelf management systems will be used to support the expansion of owned and partner brands and products, input quality and variety.
The campus (the "Hollister Brand Campus") includes 700,000+ square feet of canopy for cultivation and a 28,500-square foot processing and manufacturing facility. In addition, the Company is adding a world-renowned expert to implement advanced cultivation practices and infrastructure. All figures are presented in U.S. dollars unless otherwise indicated.
Transaction Details:
-- A wholly owned subsidiary of the Company has entered a 5-year
lease with 3 subsequent options to renew and the option to
purchase the Hollister Brand Campus, including the surrounding
~30 acres of land;
-- The Hollister Brand Campus will provide low-cost inputs for the
Venom Extracts suite of products and provide ample
opportunities to expand product diversity;
-- The annual base rent is $420,000 with an additional $150,000 to
$250,000 based on the percentage of the property's 27.5 acres
of undeveloped land (the "Undeveloped Land") utilized by the
Company;
-- Hollister will have the opportunity to purchase the Hollister
Brand Campus throughout the duration of the lease;
-- The estimated capital costs associated with phase one will be
$3,000,000 and will be funded with cash on hand;
-- Phase one is planned to be completed in Q2 of 2022, consisting
of 4 acres of cultivation area;
The project is designed to provide expanded capacity and margins and offer a diversity of inputs for branded products. This transformational transaction empowers the company to capitalize on its existing operating footprint and leading position in the rapidly growing Arizona market.
Hollister will use the Hollister Brand Campus as a hub to introduce its lineup of California-based brands to the Arizona market. The Hollister Brand Campus will house cultivation, manufacturing and distribution facilities that will enable Hollister to expand capacity for Venom and white-labeling operations for future-focused and mission-aligned brands and products.
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The Hollister Brand Campus previously served as a high-security military contractor facility and then as a hemp API manufacturing facility that met the United States Food and Drug Administration's Current Good Manufacturing Practices standard. The Hollister Brand Campus is zoned favorably for the cultivation and processing of cannabis and has been ISO 9001:2015 certified. Substantial utility infrastructure is already onsite, including 6,000 amps of power and a solar array. The building on the Hollister Brand Campus includes approximately 2,500 square feet of o?ce space and 26,000 square feet of warehousing and manufacturing space that will be customized to produce for Hollister and third-party brands.
Key Benefits
-- Targeted >50% reduction of raw material input costs
-- Strengthens seed to shelf supply chain control, minimizes
limitations, disruptions and risk
-- Enhances product quality, efficiency of existing operations and
diversity of inputs
-- Flexibility to expand into new product lines, form factors and
market segments
-- Expand distribution of innovative third-party brands in Arizona
with white-label capacity
-- Enhances capacity of Venom operations and product mix
-- Provides higher cannabinoid starting materials improving
existing operational throughput
-- Reinforces mission of acquiring, developing and powering
leading cannabis consumer products and the strategy of
expanding margins by controlling supply chain elements
-- Enables product diversity with the focus on increasing
same-store sales and distribution e?ciency
The Hollister Brand Campus dramatically increases the Company's position in Arizona and epitomizes its continued focus on acquiring, developing and powering leading cannabis consumer products. With the new facility, Hollister can partner with like-minded brands and aspiring entrepreneurs to support the development and distribution of their products throughout Arizona. The outdoor Undeveloped Land will be developed in phases, including various low-cost cultivation methods and additional processing buildings. The Company currently produces Concentrates, Pre-Rolls and Tinctures, and is analyzing new product segments.
Strategic Cultivation Expertise
The Company has appointed Damian Solomon as the Executive Vice President of Cultivation to lead the design, development, and oversight of cultivation operations.
"I'm excited to be working on another Arizona project. I have spent many years developing and overseeing projects in this region. The cultivation environment in this specific area is predictable and proven for this type of cannabis operation," said Damian Solomon.
Damian has been involved in controlled-environment agriculture and hydroponics globally for more than 20 years with expertise in greenhouse and indoor vertical-farming systems. In 2014 he switched focus to the emerging cannabis industry by consulting the first two license holders in Canada: Tilray and Tweed. Since then, he has supported more than 30 projects in North America, Europe, Israel and Australia with notable companies like Harvest Health & Recreation, Glasshouse Farms, Grassroots Cannabis, Cronos, DOJA (now Canopy), Flower One, Global, Indus Holdings, Natura Life Sciences, Pacific Dutch Group, Raw Garden, TerrAscend, Caliva, The Pharm/Sunday Goods and Wonderbrett. He also served as a member of the advisory board for Node Labs/Compound Genetics, Calyx Peak Companies and LOBO Cannagar.
Carl Saling CEO stated "We have been working tirelessly behind the scenes on this project and we are very excited to announce it. The Hollister Brand Campus will have a direct impact on our gross margins as well as set Hollister up for future expansion in Arizona. Damian is a master at his craft, and I feel we are fortunate to have him as our EVP of Cultivation."
Venom Extracts Highlights
In March 2020, Hollister completed the acquisition of Labtronix, Inc. d/b/a Venom Extracts ("Venom Extracts"), one of the industry's premier award-winning cannabis concentrate brands. Venom Extracts sales were consolidated with Hollister's sales starting after the closing in March and contributing approximately 95% of the Company's overall sales. Venom Extracts' product suite is a category leader in Arizona with over 4 million grams sold in 2020, accounting for up to 30% of category sales state-wide (per BDS Analytics). Venom Extracts is positioned for continued growth in Arizona, it has strong brand recognition and distribution network, with products in the vast majority of dispensaries statewide. Venom Extracts is actively supporting nearly 100 dispensary partners in preparation of the launch of additional locations.
Venom Extracts currently operates an 11,000 square foot facility located in Phoenix, Arizona. In 2020 Venom Extracts produced more than 4 million grams of product and in the first quarter of 2021, Venom Extracts produced more than 2 million grams of product.
This series of transactions support the Company's initiative to enhance its operational efficiency and profit margins throughout the supply chain by controlling inputs and manufacturing capacity by executing strategic agreements, acquisitions, and/or greenfield development. The Company looks forward to sharing additional details as the project develops. Development of the site is subject to conformance to state requirements and Board of County Supervisors approval of proposed site updates. The Company completed its community consideration meeting with full support to advance.
Arizona Market
Arizona is one of the largest medical marijuana markets in the world with over $1B in 2020 sales. Legal sales of adult-use cannabis in Arizona commenced midday on Friday January 22, 2021, several months ahead of industry expectations, and the fastest that any of the 15 states with recreational marijuana has gone from voter approval to actual sales. The state realized over $2.9M in recreational sales within 10 days of legalization. "Marijuana Business Daily projects that the state's recreational market could generate up to $400 million in revenue its first year and more than $700 million by 2024".
"Arizona transitioned to adult-use in late January, but this is the first month that BDSA included adult-use sales. Total cannabis sales grew 68% to $124.9 million, with adult-use representing $52.8 million. Medical cannabis sales fell 17% to $72.1 million. Growth was strong across all categories, but the highest growth by far was in pre-rolls, which gained 156%." - New Cannabis Ventures
About Hollister Biosciences Inc.
Hollister Biosciences Inc. is a multi-state company with a portfolio of innovative, high-quality cannabis & hemp branded consumer products and white-labeling manufacturing. Our products are sold in 370 dispensaries across Arizona and California. Hollister Biosciences wholly-owned brand, Venom Extracts, is a category-leading brand that sold more than 4 million grams in 2020, accounting for up to 30% of category sales in Arizona.
Products from Hollister Biosciences Inc. include HashBone, the brand's premier artisanal hash-infused pre-roll, along with concentrates (shatter, budder, crumble), distillates, solvent-free bubble hash, pre-packaged flower, pre-rolls, tinctures, vape products and full-spectrum high CBD pet tinctures. Our wholly-owned California subsidiary Hollister Cannabis Co is the 1st state and locally licensed cannabis company in the city of Hollister, CA, birthplace of the "American Biker".
Website: www.hollisterbiosciences.co
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain "forward-looking information" as defined under applicable Canadian securities legislation, including statements regarding the plans, intentions, beliefs, and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding: the impacts of the Hollister Brand Campus; and expectations for other economic, business, and/or competitive factors. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information.
Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance, or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; compliance with extensive government regulation; public opinion and perception of the cannabis industry; the impact of COVID-19; and the risk factors set out in the Company's annual information form dated August 28, 2020, filed with Canadian securities regulators and available on the Company's profile on SEDAR at www.sedar.com.
The Company, through several of its subsidiaries, is indirectly involved in the manufacture, possession, use, sale, and distribution of cannabis in the recreational and medicinal cannabis marketplace in the United States. Local state laws where the Company operates permit such activities however, investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the US Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable US federal money laundering legislation.
While the approach to enforcement of such laws by the federal government in the United States has trended toward nonenforcement against individuals and businesses that comply with recreational and medicinal cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve the Company of liability under US federal law, nor will it provide a defense to any federal proceeding which may be brought against the Company. The enforcement of federal laws in the United States is a significant risk to the business of the Company and any proceedings brought against the Company thereunder may adversely affect the Company's operations and financial performance.
Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated, or expected. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information, which speak only as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
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SOURCE: Hollister Biosciences Inc.
Company Contact: Joshua Lavers: ir@hollisterbiosciences.co, Tel: (416) 644-2020 or
(212) 812-7680
VANCOUVER, BC, July 13, 2021 /PRNewswire via COMTEX/ -- VANCOUVER, BC, July 13, 2021 /PRNewswire/ - Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the "Company", "Hollister Cannabis Co." or "Hollister") a diversified cannabis branding company is pleased to announce that it was added as an index constituent in the Solactive US Marijuana Companies Index (the "Index") effective as of the US market open on June 21, 2021 as part of the Index's June, 2021 quarterly rebalancing and as a result is now a holding in the Horizons US Marijuana Index ETF (NEO: HMUS).
Solactive offers the full spectrum of index products to their clients which include asset managers, investment banks and ETF providers around the world.
Website: www.solactive.com
About Horizons US Marijuana Index ETF (NEO: HMUS)
HMUS seeks to replicate, to the extent possible, the performance of the US Marijuana Companies Index, net of expenses. The US Marijuana Companies Index is designed to provide exposure to the performance of a basket of North American publicly-listed life sciences companies having significant business activities in, or significant exposure to, the United States marijuana or hemp industries.
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Website: https://www.horizonsetfs.com/ETF/HMUS
About Hollister Biosciences Inc.
Hollister Biosciences Inc. is a multi-state company with a portfolio of innovative, high-quality cannabis & hemp branded consumer products and white-labeling manufacturing. Our products are sold in 370 dispensaries across Arizona and California. Hollister Biosciences wholly owned brand, Venom Extracts, is a category-leading brand that sold more than 4 million grams in 2020, accounting for up to 30 percent of category sales in Arizona.
Products from Hollister Biosciences Inc. include HashBone, the brand's premier artisanal hash-infused pre-roll, along with concentrates (shatter, budder, crumble), distillates, solvent-free bubble hash, pre-packaged flower, pre-rolls, tinctures, vape products and full-spectrum high CBD pet tinctures. Our wholly owned California subsidiary Hollister Cannabis Co is the 1st state and locally licensed cannabis company in the city of Hollister, CA, birthplace of the "American Biker".
Website: www.hollisterbiosciences.co
The CSE, nor its regulation services provider, does not accept responsibility for the adequacy or accuracy of this release.
Sharing this wherever you can could help raise awareness about the reality of the cannabis situation :)
Marijuana overdose deaths soared to zero, coming off an all-time record of none ever recorded.
— John Fetterman (@JohnFetterman) July 14, 2021
Yet, OxyContin remains perfectly legal. https://t.co/S1LcSV0EXm
California cannabis brands begin selling directly to consumers, bypassing retailers
Published 6 hours ago | By John Schroyer
A handful of California cannabis manufacturers and brands have begun selling their products directly to customers through their websites, effectively bypassing traditional brick-and-mortar retail shops and delivery companies that have long been the gatekeepers to marijuana consumers.
The direct-to-consumer approach reportedly is being employed by some of the biggest marijuana brands in California, including Kiva Confections, CannaCraft, Cann Social Tonic, Old Pal and Roach.
For now, the trend appears to be taking place primarily in California, the largest marijuana market in the United States and the one with the most established and mature delivery infrastructure.
But insiders say they expect the practice will spread quickly to other states that also allow home delivery. The only question is when.
“The (COVID-19) pandemic made it practically a necessity. As people use Amazon more and more … direct-to-consumer made a lot more sense,” said Kenny Morrison, the president of the California Cannabis Manufacturers Association and CEO of marijuana manufacturing company VCC Brands.
“When the pandemic hit, it was like, ‘We better step on it.'”
Different options
Morrison and others said brands have several options for setting up their own direct-to-consumer infrastructure, including obtaining their own delivery licenses or partnering with existing marijuana delivery businesses.
But Morrison said the key selling point for brands is twofold:
It allows consumers to shop their entire line of products instead of only what retailers or independent delivery businesses choose to carry.
It allows brands to collect and retain customer data, providing valuable business intelligence for product development.
“There are different ways of achieving direct-to-consumer that are compliant,” Morrison said, including what Kiva has been doing.
Kiva is reportedly contracting with a licensed delivery company – Grass Door – to deliver customer orders placed directly through Kiva’s website.
A Kiva spokesperson declined to comment for this story.
Others, including Old Pal, have partnered with delivery businesses such as Amuse to create brand-specific websites for brand “super fans,” as Old Pal CEO Rusty Wilenkin referred to loyal customers.
“A store might not carry all of your SKUs, whereas your online experience carries all of your SKUs. so people who are big devotees may go, ‘I had no idea they had all these flavors, I’ve got to try them all,'” Morrison said.
“It also gives brands a way to try out new products.”
That’s been one of the primary motives for Old Pal, which specializes in white label flower, pre-rolls and vape cartridges.
“We have a pretty wide assortment of SKUs, so for the Old Pal super fan to have one place where they can look for all those SKUs is really exciting,” Wilenkin said.
“It was really just partnering with (Amuse) to create this digital store … that had our products in there.”
Wilenkin said Old Pal’s new website ordering function went live in late June, and he believes it will likely increase sales by giving consumers more options that are brand-specific.
‘Everyone is doing it’
One of those trying to ride the trend is Roie Edery, a co-founder of Eaze, which has morphed into one of the largest marijuana delivery companies in California since its inception in 2014.
No longer with Eaze, Edery has launched his own direct-to-consumer platform and delivery service for marijuana brands called Ginger.
One of the selling points he’s relying on is that brands will be the sole owners of all consumer data obtained through online transactions.
“It’s a purpose-built e-commerce solution … to integrate into their website and essentially monetize the traffic coming to their website,” Edery explained.
Though Ginger launched only in June, the company is already performing deliveries for three brands and has another seven that are being brought onto the platform.
Edery said no company executive has turned him down outright. That’s an indicator, he said, that direct-to-consumer (D2C) sales are up and coming.
“It’s truly an open field right now. Out of the top 100 brands in California, only about 5% are doing D2C, and the other 95% are thinking hard about it,” Edery said.
“I’ve pitched close to 30-40 brands in the past month, and nobody has said, ‘Yeah, no, not interested.’ Everyone is like, ‘Hey, great timing, we just started thinking about this.’
“This is a massive wave.”
Wilenkin and Morrison agreed there are an increasing number of delivery companies and software providers actively pitching brands on the same concept.
And with all the benefits for brands, it’s hard to see this trend disappearing anytime soon.
“I think everyone’s doing it,” Morrison said. “It’s the natural evolution of every single industry.”
Blowback from retailers?
Some retailers are unhappy about the direct-to-consumer development, however, and say they feel cheated.
Chelsea Sutula, the owner of Sespe Creek Collective in Ojai, said she found out about Kiva’s direct-to-consumer sales from one of her customers, who complained she was paying more for Kiva products at storefronts versus Kiva’s website.
“I’ve been discovering these things by surprise,” Sutula said.
That didn’t make her happy, particularly because Sutula’s business relationship with Kiva goes back to 2011, she said.
Sutula said the prices advertised on Kiva’s website don’t include the sales and excise taxes, which makes it appear that Kiva’s direct-to-consumer prices are significantly different from what she’s able to charge.
In addition, Sutula said, she discovered that Kiva was offering volume discounts to customers who ordered in bulk, which is a tactic she can’t compete with.
“It’s just a price that makes us look like chumps,” Sutula said, adding that she hadn’t heard from anyone at Kiva about the change.
“It is kind of an unappreciated tactic for me. I’m a small retailer.”
As a result, she’s reconsidering her relationship with the brand, since the California market is saturated with edibles makers just like Kiva.
“We’re going to take a hard look, on a SKU-by-SKU basis … and keep the ones at the top that are really selling, instead of giving the brand the full product line,” Sutula said.
“I can definitely see us paring down some SKUs and taking away their presence in the store.”
John Schroyer can be reached at john.schroyer@mjbizdaily.com.
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https://mjbizdaily.com/california-cannabis-brands-begin-selling-direct-to-consumer-sales/?amp=1
Maybe Dreamy Delivery is a more valuable asset than it initially appeared?
Cannabis company Nabis completes $23 million funding round
Published July 2, 2021
California cannabis distributor Nabis said it raised $23 million in a Series B fundraising round in a quest to expand daily operations and the company’s online wholesaling platform.
In a news release, the San Francisco-based company said the funds would be put toward expanding its Nabis Marketplace, a wholesale portal for retailers and brands.
Investors in the Series B funding included FJ Labs, Artemis Growth Partners, Silverleaf Venture Partners, Liquid 2 Ventures and DoorDash co-founder Stanley Tang, the company noted in its release.
Nabis previously raised $5 million in a Series A funding round.
“We are enabling the cannabis brands and retailers of today to transact with the most modern technology tools to best serve the exponentially-growing demand for cannabis,” CEO Vince Ning said in the release.
Ning added modern distributors should emulate platforms such as Faire, a self-described “one-stop shop” wholesale platform that acts as an online, big-box wholesale store.
https://mjbizdaily.com/cannabis-company-nabis-completes-23-million-funding-round/
VANCOUVER, BC, June 28, 2021 /PRNewswire via COMTEX/ -- VANCOUVER, BC, June 28, 2021 /PRNewswire/ - Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the "Company", "Hollister Cannabis Co." or "Hollister") a diversified cannabis branding company is pleased to announce that it has commenced pre-roll production and distribution in Arizona to complement the Company's existing cannabis concentrate product suite in the state through its wholly owned Venom Extracts ("Venom") subsidiary.
Pre-roll production will initially be launched for existing and new white-label customers and will be expanded to include branded offerings in Q3 that leverage Venom's strong existing brand equity in the state. The company has prepared for initial production of up to 10,000 units per day, with plans to expand capacity to 30,000 units per day by Q4.
"As a result of adult use legalization in Arizona, we have witnessed growing consumer demand for pre-rolls in the state. Integrating our capabilities and brands between California and Arizona has been a key operational initiative for the Company and we are proud to share this exciting update. We look forward to introducing our California Hashbone pre-roll brand and our brand partners into Arizona to broaden our higher margin product offerings throughout the state", shared Carl Saling, Co-Founder and CEO of Hollister.
Arizona Market
The state boasts a population of 7.3 million, approximately 70% of which are of legal consumption age, which makes it the 5th most populous state with an active legal adult-use market. Arizona is one of the largest medical marijuana markets in the world with over $1 billion in 2020 sales. The state has nearly 308,000 registered medical patients, making it the third largest medical program in absolute terms, and the second highest in terms of patient penetration rate. Legal sales of adult-use cannabis in Arizona commenced midday on Friday January 22nd, several months ahead of industry expectations, and the fastest that any of the 15 states with recreational marijuana has gone from voter approval to actual sales. The state realized over $2.9 million in recreational sales within 10 days of legalization. "Marijuana Business Daily projects that the state's recreational market could generate up to $400 million in revenue its first year and more than $700 million by 2024."
"Arizona transitioned to adult-use in late January, but this is the first month that BDSA included adult-use sales. Total cannabis sales grew 68% to $124.9 million, with adult-use representing $52.8 million. Medical cannabis sales fell 17% to $72.1 million. Growth was strong across all categories, but the highest growth by far was in pre-rolls, which gained 156%." - New Cannabis Ventures
Venom Highlights
In March 2020 Hollister Biosciences completed the acquisition of Venom Extracts, one of the industry's premier award-winning cannabis concentrate brands. Venom sales were consolidated with Hollister's sales starting after the closing in March and contributing approximately 95% of the Company's overall sales. Venom's product suite is a category leader in Arizona with over 4 million grams sold in 2020, accounting for up to 30 percent of category sales state-wide (per BDS Analytics). Venom is positioned for continued growth in Arizona, it has a strong brand recognition and distribution network, with products in the vast majority of dispensaries statewide.
Venom operates an 11K sq. ft. facility located in Phoenix, AZ which can produce approximately 5 million grams of extract annually in its current configuration. With planned equipment and production enhancements its expected production capacity will be greater than 15 million grams of concentrate products and over 8 million pre-rolls per year.
In 2020 Venom produced greater than 4 million grams of product
In Q1 2021 Venom produced approximately 2 million grams of product
This expansion reinforces the company's focus on operational efficiencies and profit margins through product mix and same customer sales. Adding Pre-Rolls as the next product category for Arizona leverages existing capabilities from California, and a large existing distribution network to enhance revenue and profitability of the Arizona operations. The Company looks forward to sharing additional details as this initiative progresses.
About Hollister Biosciences Inc.
Hollister Biosciences Inc. is a multi-state company with a portfolio of innovative, high-quality cannabis & hemp branded consumer products and white-labeling manufacturing. Our products are sold in 370 dispensaries across Arizona and California. Hollister Biosciences wholly owned brand, Venom Extracts, is a category-leading brand that sold more than 4 million grams in 2020, accounting for up to 30 percent of category sales in Arizona. The Company is one of the leaders in the cannabis industry with Q1 2021 revenue of $23.1 million and Adjusted EBITDA of $2.8 million respectively (See Press Release dated June 1st, 2021)
Products from Hollister Biosciences Inc. include HashBone, the brand's premier artisanal hash-infused pre-roll, along with concentrates (shatter, budder, crumble), distillates, solvent-free bubble hash, pre-packaged flower, pre-rolls, tinctures, vape products and full-spectrum high CBD pet tinctures. Our wholly owned California subsidiary Hollister Cannabis Co is the 1st state and locally licensed cannabis company in the city of Hollister, CA, birthplace of the "American Biker".
Website: www.hollisterbiosciences.co
Use of Non-GAAP Financial Measures
I have posted T**TF comparison to ...
MedMen
Sundial
Fire and Flower
I could go Hollister next or 4Front
It would be cool to trade around a position. I am holding long since they bought Venom Extracts. They could be a real player in this new industry. It is not just Venom but all the other assets they have assembled. I am very long here. May pick up more on the traditional sell the news dip. That other company seems to be bottoming after the uplist too. It is on sale as well.
You could make a case for
BUY $0.25
SELL $0.30
for a cool 20 percent gain
If done in 3 month's time
Annualized gain = 80 percent gain
https://www.thecannabisinvestor.ca/dark-horse-mso-hollister-biosciences-posts-blowout-earnings/
Dark Horse MSO Hollister Biosciences Posts Blowout Earnings
JUNE 15, 2021
SHAWN V.
As another cannabis earnings season comes to a close, the financial results from some of the smaller U.S. multi-state operators (MSOs) have fallen under the radar, despite posting awe-inspiring numbers.
A perfect example of an under-the-radar company that recently posted stellar earnings is Hollister Biosciences, which saw its Q4 and full-year 2020 revenue skyrocket +3,243% and +2,960% year over year, respectively.
Hollister followed that up with a blowout Q1 2020 earnings report, which saw the company’s revenue surge another +97% over Q4 (+2,332% YoY) and featured net income of $2 million and adjusted EBITDA of $2.8 million.
In addition to Hollister’s strengthening fundamentals, the rapidly rising cannabis MSO also holds a significant stake in the burgeoning psychedelics industry, making HOLL stock one of the more unique, “best of both worlds” investment opportunities.
Hollister Biosciences (CSE: HOLL) (OTC: HSTRF) (FRA: HOB) got its start in its namesake town, Hollister, California. The company sells a wide variety of cannabis products throughout California, including hash-infused pre-rolls and celebrity-endorsed medical tinctures. In March 2020, the company acquired Venom Extracts, a leading cannabis concentrate company based in Arizona.
Hollister has since brought Venom’s highly sought-after products to the California marketplace. It was the sale of Venom’s products across the two states that drove Hollister’s strong financial results, with Venom accounting for 95% of revenues. With Arizona recently beginning sales of recreational cannabis products, the company expects to see significant revenue growth from Venom’s line of products, which are available in 95 dispensaries statewide.
With that said, let’s take a look at some of the highlights from Hollister’s most recent earnings reports.
Q4 & FY 2020 Earnings Highlights – Major Turnaround
Q4 revenue of $11.7 million, up +18% quarter over quarter and +3,243% year over year.
Full-year 2020 revenue of $30.6 million, up +2,960% year over year.
4,000 kg of Venom concentrates sold in Arizona, #1 market share (30%).
Licensing agreement for medical tinctures with legendary comedian Tommy Chong.
Partnership with Easy Rider magazine to release Easy Rider-branded cannabis products systemwide.
Partnership with Tactical Relief to develop medical cannabis for veterans.
Partnership with Heavy Brands to sell artist-sponsored Heavy Grass products.
Q1 2021 Earnings Highlights – Up, Up & Away
Q1 2021 revenue $23.1 million, up +97% from the previous quarter and up +2,332% compared to last year’s Q1.
Q1 2021 net income of $2 million, a substantial improvement compared to Q1 2020’s net loss of $2.2 million.
Q1 2021 adjusted EBITDA of $2.8 million, another significant improvement compared to Q1 2020’s adjusted EBITDA loss of $1.1 million.
Closed a brokered private placement of Special Warrants raising gross proceeds of CDN $7.9 million.
Announce its direct-to-consumer delivery platform, Dreamy Delivery, was the official delivery platform of the 2021 Emerald Cup Awards.
Source: HollisterBiosciences.co
A Piece of the Psychedelic Pie
Hollister made headlines last May after the cannabis company announced it closed its acquisition of AlphaMind Brands, a growth stage psychedelics firm developing a portfolio of certified legal mushroom-based natural health products. With operations in Canada and the United States, AlphaMind has an impressive portf0lio of “ready to ship” products SKU’s, including Cordyceps, Lion’s Mane, Shiitake, Oyster, and Reishi Mushroom based: liquid tinctures, capsules, concentrated mushroom powders, teas and chocolate. AlphaMind’s unique formulations are developed by research-driven initiatives alongside industry experts.
With cannabis and psychedelics arguably the two hottest investment sectors currently, Hollister’s move to diversify its operations has made its stock a unique option for investors. With exposure to both the cannabis and psychedelics sectors, combined with the company’s rapidly strengthening fundamental position and low market cap relative to its peers, Hollister’s stock has emerged as one of the more attractive investment opportunities on the market today.
Final Thoughts
Hollister Biosciences became an MSO just over a year ago when it purchased Venom Extracts. The combined company has strong and growing operations in both Arizona and California. In particular, Arizona starting recreational sales will provide a huge boost to Hollister’s topline revenue. Despite posting very impressive 2020 numbers, Hollister expects 2021 to be even better. The company’s recently released Q1 2021 financial results certainly back up that claim. With Hollister posting a 97% quarter over quarter and 2,332% year over year increase in Q1 2021 revenue to go along with $2 million in net income and adjusted EBITDA of $2.8 million, the sky is the limit for Hollister Biosciences.
Source: StockCharts.com
Learn more about Hollister: Website | IR Website | Investor Deck | Financials | HSTRF Chart
My gut tells me this one is about to break out to the next level, and maybe hold into around the low .40s maybe?
If any new interviews come out where Jacob hints at anything CLOSE to a $30 mill qtr, or he gives a positive update on moving into the Cali territory with Venom products and how that's going, this thing will really start to get noticed and taken more seriously.
SLIPKNOT’S CLOWN TALKS ENTERING CANNABIS INDUSTRY
https://www.laweekly.com/slipknots-clown-talks-entering-cannabis-industry/?fbclid=IwAR2aVzMuC0EsBVUDX8ovSHRtvb04N59tGgbw9hqnhuYH6NxmfX9vbUCcKqI
JIMI DEVINEJUNE 8, 2021
We recently chatted with M. Shawn Crahan, also known as Slipknot co-founder Clown, about his recent move into the cannabis industry in collaboration with Hollister Cannabis Co. and Heavy Grass.
The collaboration will feature special-edition HashBone packs with six half-gram pre-rolls.
While we have certainly covered many musicians taking a stab at cannabis here at L.A. Weekly, Crahan’s discography represents the heaviest of the pack.
Carl Saling, the co-founder, CEO and director of Hollister Biosciences noted, “We are very excited to be launching our HashBone collaboration with Clown. We couldn’t ask for a better partner and someone who is true to the plant. This partnership is our first step in combining hard rock/metal with cannabis in a truly authentic way. Additionally, we are happy that we get to bring Clown to market in tandem with our friends at Heavy Grass – leveraging their experience in music-inspired cannabis products will amplify our overall marketing efforts.”
Heavy Grass is also offering a once-in-a-lifetime Green Ticket experience. The winner of Clown’s Green Ticket will receive unlimited entrance for two into any Slipknot shows in the world for the next three years.
As Crahan joined us for our chat, the world continued to open. Just a few hours earlier, Slipknot was announced as the headliner for Rocklohoma in September. But our talk started with adding a bit of metal to the cannabis industry in a sea of rap, reggae and jam bands. We asked what it felt like to carry the flag?
“I appreciate what you just said because it really plays into a lot of what society is and the cultural aspects of it,” Crahan told L.A. Weekly. “I’m excited for some of the same aspects that you just said.”
While cannabis has its place in rock music, drugs and the genre tend to be a wildly polarizing topic. We asked Crahan if it ever felt like cannabis got lost in the middle between the straight edge crowd and heavy opiate users.
“I don’t know if it gets lost,” he replied. “Only for the simple fact that if we feel it gets lost, it’s probably because it’s just everyday stuff. Whereas the other ones are so over the top, and not necessary.”
Crahan was quick to argue that wanting to live a straight-edge lifestyle is great for people who are into it, and his own family has dealt with the struggles of substance abuse. So it’s certainly a personal take on that end.
“I think the flower gets ignored because it’s just so widely accepted more than anyone could ever imagine. It’s like everyday stuff for a lot of humans on the planet,” Crahan said.
When we asked about Crahan’s own personal experiences with cannabis, he quickly pointed to the efficacy of medical cannabis as what led him down the road to eventually starting the brand. One member of his family that had dealt with alcoholism asked Crahan if he thought their life might have gone differently had they enjoyed cannabis instead of booze.
“And this was a heartbreaking moment for me because immediately I felt a more loving, peaceful life for this person. And it was sad. And that began the journey of the idea,” Crahan said. “This is 100% driven by the possibilities of medicine, when applied correctly.”
Crahan went on to speak of his own experience with cannabis: “In my personal life, it’s been more about behavioral health recovery. And, you know, having alternative ways than the ways that are on the shelves. And luckily, things are changing.”
Crahan laughed a bit at the irony of cannabis turning into one of those options on a shelf that he avoided. He hopes to be a part of the educational process for folks who are yet to realize the positive benefits. At home, it’s tricky to see the maximum benefit of medical cannabis. Iowa is one of the most tightly regulated markets in the country.
At one point, Crahan shared that being on tour was his favorite thing in the world. We asked how excited he is to get back out there.
“I really love this idea that we all conversed on being in this reality, before and through the whole pandemic,” Crahan said. “And then the pandemic hits, and I listen how people close to you talk about what they’re going to try and achieve during this time. And then, what I think is beautiful and what you asked was, ‘What are we going to do with it afterwards?’ What are we going to do when the floodgates are open?”
Crahan emphasized what he does is throw massive shows with lots of people. That’s what he does.
“I am so excited. I actually have a nervousness that I haven’t had in a very long time,” he admitted. “And a lot of it just has to do with the way I feel about my culture. I sort of feel like they need to know they’re okay – I want to see it for myself. I’m part of our culture and I feel the same pain. And I think music is such a gift and I can’t wait to get out and be a part of that reality again. I never did not appreciate what we do, and I’ve always held the thought that it going away at any moment is a possibility. So, it’s been challenging for all of us. I’m so excited and nervous, and I’ve sort of foreseen it in my brain, on how beautiful it’s going to be to reignite. And I’m curious what we’re going to do with that ability now that we’ve gone through what we’ve gone through. I hope that we’ve learned from all that has happened and maybe make a change together.”
Crahan explained that while Slipknot had longer breaks over the years, they were rarely this abrupt. Mostly, he found the breaks very healthy except for one three-year hiatus that felt a bit long.
“In over 20 years, you know we’re working on album seven, so we take nice little breaks,” Crahan said. “So the longest I’ve probably been off in between Slipknot cycles, that was too long, was just about three years. We usually do about two years. So lucky enough, this is coming under two years. So I’ve sort of experienced this.”
As the news was breaking early last year around the pandemic, Crahan was touring one of his favorite places in the world.
“With that said, we had a tour in Japan, and Japan is one of my favorite places on the globe. And we had to cancel all tours afterward, so we weren’t expecting this. This is a lot like 2001, Pledge of Allegiance [Tour],” he said. “We were on Pledge of Allegiance and the tragedy hit, and we got out of there. Everybody had to put the brakes on and open their brains in empathy and humanity, and that’s a lot like what happened here a year ago, boom, it just hit, and everybody had to put the brakes on.”
Crahan closed by asking us to deliver this message to Slipknot fans: “We miss you guys. We love you guys. We hope everybody’s cool. We hope you’re all helping each other, see you soon. We got some great new things for everybody. We’ve been really busy during this time off, and it’s just a way of saying hello again, and can’t wait to see what we do with all the knowledge we get in 2021.”
Clown’s signature HashBone line is currently available in California from DreamyDelivery.com, and other retail dispensaries and delivery services.
Agreed! The manipulation of this stock is nauseating and relentless. Uplisting would seriously help!
Looking for them to list above PINK.
Outstanding Shares
267,784,732
04/22/2021
Sadly, I don't think so. Another missed opportunity to get the word out and boost the MC of this company.
Are they going to be presenting at the Benzinga Cannabis Conference?
Up 34% on 522% of avg daily volume. They are starting to get noticed. FINALLY.
Hollister Biosciences Inc. Reports First Quarter 2021
Financial Results
First quarter revenue was USD $23.1 million compared to USD $0.95 million in the first quarter of 2020 and up 97%
sequentially from USD $11.7 million in the fourth quarter of 2020
First quarter net income was USD $2.0 million compared to a net loss of USD $2.2 million in the first quarter of 2020
Adjusted EBITDA was USD $2.80 million in the first quarter compared to a loss of USD $1.1 million in the first quarter of
2020
VANCOUVER, BC, June 1, 2021 /CNW/ - Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the
"Company", "Hollister Cannabis Co." or "Hollister") a diversified cannabis branding company with products in over 280
dispensaries throughout California, and over 95 dispensaries throughout Arizona, today reported its financial and operating
results for the first quarter of 2021. All financial information is presented in U.S. dollars unless otherwise indicated.
First Quarter 2021 Financial Results
Total revenue in the first quarter was $23.1 million compared to $0.95 million in the first quarter of 2020 and up 97%
sequentially from $11.7 million in the fourth quarter of 2020
Net income in the first quarter was $2.0 million compared to a net loss of $2.2 million in the first quarter of 2020
Adjusted EBITDA was $2.80 million in the first quarter compared to a loss of $1.1 million in the first quarter of 2020
First Quarter 2021 Business Highlights
On March 2
nd, 2021, Hollister announced the closing of its brokered private placement of 21,635,094 Special Warrants at
a price of CDN $0.365 per Special Warrant, raising gross proceeds of CDN $7.9 million
On March 8
th, 2021, Hollister was pleased to announce that its direct-to-consumer delivery platform, Dreamy Delivery,
was the official delivery platform of the 2021 Emerald Cup Awards
Venom Extracts ("Venom") product suite is a category leader in Arizona, accounting for up to 30 percent of category sales
state-wide. Venom is positioned for continued growth in Arizona, it has a strong brand recognition and distribution network,
with products in the vast majority of dispensaries statewide.
Venom Extracts operates a 11K sq. ft. facility located in Phoenix, AZ which can produce approximately 5 million grams of
extract annually in its current and >15 million grams with planned equipment and production enhancements.
Arizona is one of the largest medical marijuana markets in the world with over $1B in 2020 sales. Legal sales of adult-use
cannabis in Arizona commenced midday on Friday January 22
nd, several months ahead of industry expectations, and the
fastest that any of the 15 states with recreational marijuana has gone from voter approval to actual sales. The state realized
over $2.9M in recreational sales within 10 days of legalization. "Marijuana Business Daily projects that the state's recreational
market could generate up to $400 million in revenue its first year and more than $700 million by 2024."
Use of Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures as defined by the SEC. Reconciliations of these non-GAAP
financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are
included below. This information should be considered as supplemental in nature and not as a substitute for, or superior to,
any measure of performance prepared in accordance with GAAP. Our management uses adjusted EBITDA to evaluate our
operating performance and trends and make planning decisions. Our management believes adjusted EBITDA helps identify
underlying trends in our business that could otherwise be masked by the effect of the items that we exclude. Accordingly, we
believe that adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating
results, enhancing the overall understanding of our past performance and future prospects, and allowing for greater
transparency with respect to key financial metrics used by our management in its financial and operational decision-making.
Reconciliation of Non-GAAP Financial Measures
The table below reconciles Net income (loss) to Adjusted EBITDA for the periods indicated.
For the three months ended March 31, 2021
For the three months ended March 31, 2020
$ $
Net income (loss) and comprehensive income (loss) 1,986,802 (2,153,479)
Add (deduct) impact of:
Accretion - 3,150 Depreciation 304,041 77,099
Finance costs 101,182 109,682
Foreign exchange gain (28,296) -
Interest expense 17,514 12,500
Transaction costs - 828,100
Interest income (25,610) -
Income tax expense 808,000 - Deferred income tax recovery (55,000) -
Foreign currency translation adjustment (298,166) 75,713
Adjusted EBITDA 2,810,467 (1,047,235)
About Hollister Biosciences Inc.
Hollister Biosciences Inc. is a multi-state company with a portfolio of innovative, high-quality cannabis & hemp branded
consumer products and white-labeling manufacturing. Our products are sold in 370 dispensaries across Arizona and California.
Hollister Biosciences wholly-owned brand, Venom Extracts, is a category-leading brand that sold more than 4 million grams in
2020, accounting for up to 30 percent of category sales in Arizona.
Products from Hollister Biosciences Inc. include HashBone, the brand's premier artisanal hash-infused pre-roll, along with
concentrates (shatter, budder, crumble), distillates, solvent-free bubble hash, pre-packaged flower, pre-rolls, tinctures, vape
products and full-spectrum high CBD pet tinctures. Our wholly-owned California subsidiary Hollister Cannabis Co is the 1st
state and locally licensed cannabis company in the city of Hollister, CA, birthplace of the "American Biker".
Website: www.hollisterbiosciences.co
The CSE, nor its regulation services provider, does not accept responsibility for the adequacy or accuracy of this
release.
Forward-Looking Information: This news release includes certain statements that may be deemed "forward-looking
statements". The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "would", "project",
"should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company
believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue
reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will
prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve
inherent risks and uncertainties. These statements speak only as of the date of this News Release. Actual results could
differ materially from those currently anticipated due to a number of factors and risks including various risk factors
discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com
View original content to download multimedia:
http://www.prnewswire.com/news-releases/hollister-biosciences-inc-reports-first-quarter-2021-financial-results-301302827.html
SOURCE Hollister Biosciences Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/June2021/01/c4955.html
%SEDAR: 00048187E
For further information: Company Contact: Melanie Barbeau, ir@hollisterbiosciences.co, Tel: (416) 644-2020 or (212) 812-
7680
CO: Hollister Biosciences Inc.
CNW 08:00e 01-JUN-21
Hollister Biosciences Inc. Reports Fourth Quarter and Full Year Financial Results
Share: REDDITVKDIGGLINKEDINMIX
Total revenue in 2020 was USD $30.6 million compared to USD $1.0 million in 2019
Fourth quarter revenue was USD $11.7 million compared to USD $0.35 million in the fourth quarter of 2019
Net loss for the full year was USD $3.7 million compared to a net loss of USD $1.9 million in 2019
Net loss in the fourth quarter was USD $1.1 million compared to a net loss of USD $1.33 million in the fourth quarter of 2019
Outstanding Shares
267,784,732
04/22/2021
Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the “Company“, “Hollister Cannabis Co.” or “Hollister“) a diversified cannabis branding company with products in over 280 dispensaries throughout California, and over 95 dispensaries throughout Arizona, today reported its financial and operating results for the fourth quarter and year ended 2020. All financial information is presented in U.S. dollars unless otherwise indicated.
Fourth Quarter and Full Year 2020 Financial Results
Total revenue in 2020 was $30.6 million compared to $1.0 million in 2019
Total revenue in the fourth quarter was $11.7 million compared to $0.35 million in the fourth quarter of 2019 and up 23% compared to $9.5 million in the third quarter of 2020
Net loss for the full year was $3.7 million compared to a net loss of $1.9 million in 2019
Net loss in the fourth quarter was $1.1 million compared to a net loss of $1.3 million in the fourth quarter of 2019
Full Year 2020 Business Highlights
Hollister highlights in 2020 included record revenue growth, concentrate category leadership in Arizona, successful acquisitions, partnerships, and geographical expansion. Heading into 2021, the company will utilize the collective market strength that comes from uniting all these brands and infrastructure, which will empower the company to further expand, grow and impact communities at a record pace.
Venom Extracts Acquisition
In March, Hollister Biosciences officially acquired Venom Extracts, one of the industry’s premier award-winning cannabis concentrate brands. Venom Extracts sales were consolidated with Hollister’s sales starting after the closing in March and contributing approximately 95% of the Company’s overall sales.
Venom Extracts (“Venom“) product suite is a category leader in Arizona with over 4 million grams sold in 2020, accounting for up to 30 percent of category sales state-wide. Venom is positioned for continued growth in Arizona, it has a strong brand recognition and distribution network, with products in the vast majority of dispensaries statewide.
Venom Extracts operates a 11K sq. ft. facility located in Phoenix, AZ which can produce approximately 5 million grams of extract annually in its current and >15 million grams with planned equipment and production enhancements.
Arizona is one of the largest medical marijuana markets in the world with over $1B in 2020 sales. Legal sales of adult-use cannabis in Arizona commenced midday on Friday January 22, 2021, several months ahead of industry expectations, and the fastest that any of the 15 states with recreational marijuana has gone from voter approval to actual sales. The state realized over $2.9M in recreational sales within 10 days of legalization. “Marijuana Business Daily projects that the state’s recreational market could generate up to $400 million in revenue its first year and more than $700 million by 2024.”
Hollister plans to partner with like-minded, future-focused brands and aspiring entrepreneurs to support the development and distribution of their products throughout Arizona leveraging the Venom ecosystem.
Partnership with Iconic Biker Brand Easyriders
As part of its 50th-anniversary celebration last fall, Easyriders signed an exclusive agreement with Hollister Biosciences to introduce a national line of cannabis products that will debut in early 2021. Easyriders magazine debuted shortly after the ground-breaking 1969 film Easy Rider, while Hollister Biosciences is based in Hollister, California, home to an infamous 1947 biker rally that birthed the outlaw biker image. The partnership was a natural fit offering an authentic voice that embraces the outlaw origins of biker culture and how it came to inspire an independent spirit that embraces exploration, Americana, and freedom.
The Launch of Dreamy Delivery
In 2020, Hollister Biosciences soft launched a new cannabis delivery platform, Dreamy Delivery, to friends and family in the San Francisco Bay Area. The platform went public in October and is now servicing legal cannabis consumers with next-day delivery in the Bay Area and Sacramento. Dreamy Delivery will expand to the Central Coast of California in early 2021.
Civic Recognition for Donation of PPE
Hollister Biosciences wanted to help its local community, a statewide “shelter at home” mandate had been issued for California for non-essential businesses, but Hollister Biosciences was considered essential, and it used its standing to source and produce hand sanitizer to donate to the local community. The company provided Hollister branded Hand-Sanitizer to the local food bank and then gave away thousands more to nursing homes, rehabilitation centers and homeless shelters. The City of Hollister recognized the company’s humanitarian effort by awarding it an official Certificate of Appreciation.
Joint Venture with Heavy Brands
Hollister Biosciences partnered with Heavy Brands to brand, produce and sell Heavy Grass products primarily through collaborations with its roster of hard rock and heavy metal artists. As part of the deal, Hollister issued a limited license for Heavy Brands to use its HashBone brand in its product packaging and logo design.
Tommy Chong Licensing Agreement
In February, Hollister Biosciences announced a licensing agreement with actor, comedian and cannabis icon Tommy Chong to produce and sell Tommy Chong’s Cannabis Full Spectrum Elixir 1:1. Made with high-quality California cannabis, the tincture offers a 1-to-1 ratio of THC to CBD. Tommy Chong’s name is synonymous with cannabis and has a social media following greater than 2.2 million.
HashBone Trademark
HashBones are the No. 1 hash-infused pre-roll in California and one of Hollister’s signature products, and the company received trademark approval for the HashBone brand in December. These premium hash-infused pre-rolls feature an artisan blend of 75 percent top-shelf flower and 25 percent cold water bubble hash. Hollister added a new MiniBones line in April 2020.
Product Partnership Designed to Help Veterans
Hollister Biosciences and Allied Corp. partnered on a new medical cannabis brand, Tactical Relief, that made its market debut in December. “Tactical Relief is a patriotic brand with a powerful message,” said Adam Smith, a Green Beret veteran who co-founded the brand, which hopes to help veterans better manage symptoms of post-traumatic stress disorder (PTSD).
2021 Outlook
If 2020 was a year of navigating turmoil and disruption, 2021 appears set to be a year of opportunity and expansion as the pandemic weakens, the economy recovers, and newly approved cannabis laws open new markets. Expectations include continued increased sales and demand in multiple states, with a special emphasis on the emerging recreational market in Arizona. The company will continue its focus on acquiring, developing, and powering class leading cannabis consumer products, expansion, and growth in line with our strategy, which will focus on three key areas:
Improved Supply Chain:
The Company will seek to improve its operational efficiency and profit margins throughout the supply chain by controlling inputs and manufacturing capacity through strategic agreements, acquisitions, and/or greenfield development.
Expanded Wholesale Distribution and Loyalty:
The legalization of recreational cannabis in Arizona will exponentially increase demand in Arizona and retail license issuance throughout California will fuel growth and opportunity in our home state. Hollister will focus on increasing loyalty and sales throughout its existing 370 store distribution, introduce its full suite of branded products systemwide and seek to expand its wholesale and delivery network reach.
Ecommerce:
The direct-to-consumer online platform; Dreamy Delivery, has launched in the Bay Area, and will expand across CA in 2021 with a calculated asset-light approach, this will give the Company unique access to market its brands and analyze consumer trends.
Hollister Biosciences Inc. Reports Fourth Quarter and Full Year Financial Results
Total revenue in 2020 was USD $30.6 million compared to USD $1.0 million in 2019
Fourth quarter revenue was USD $11.7 million compared to USD $0.35 million in the fourth quarter of 2019
Net loss for the full year was USD $3.7 million compared to a net loss of USD $1.9 million in 2019
Net loss in the fourth quarter was USD $1.1 million compared to a net loss of USD $1.33 million in the fourth quarter of 2019
https://www.newswire.ca/news-releases/hollister-biosciences-inc-reports-fourth-quarter-and-full-year-financial-results-894015843.html?fbclid=IwAR0LuYdONVyKNjY7lQLxrgKmXEgoLxDPZnNCy8z6An1lW2BrikIVkEwTTQc
Hollister Biosciences Inc. Announces Delay in Filing Annual Financial Statements
VANCOUVER, BC –May 4th, 2021 – Hollister Biosciences Inc. (CSE:HOLL,
OTC:HSTRF, FRANKFURT:HOB) (“Hollister” or the “Company”) announces that its
annual financial statements for the year ended December 31, 2020, including the related
management discussion and analysis, and CEO and CFO certifications (collectively, the
“Annual Financial Filings”) were not filed by the required filing deadline of April 30,
2021 (the “Filing Deadline”).
The Annual Financial Filings were not filed on or before the Filing Deadline due to the
location of the operations and the COVID-19 pandemic that lead to delays in coordinating
the collection of data and documentation for inventory. The Company has been advised
by its auditors, Davidson & Company LLP, that they need more time to complete the audit.
The Company is working on the steps required to complete the Annual Financial Filings
and is working diligently to be able to file the Annual Financial Filings as soon as possible.
The Company will provide updates as further information relating to the Annual Financial
Filings becomes available.
The Company has applied to the applicable securities regulatory authorities and received a
management cease trade order (“MCTO”) imposed against the Chief Executive Officer
and Chief Financial Officer of the Company precluding them from trading securities of the
Company. The MCTO will be in effect until the Annual Financial Filings are filed, and
requires that the Annual Financial Filings be filed on or before July 2nd, 2021.
Until the Annual Financial Filings are filed, the Company intends to issue bi-weekly
default status reports in accordance with National Policy 12-203 - Management Cease
Trade Orders. The Company intends to satisfy the provisions of the Alternative
Information Guidelines during the period it remains in default of the filing requirements.
The Company confirms that there is no other material information relating to its affairs that
has not been generally disclosed.
About Hollister Biosiences Inc.
Hollister Biosciences Inc. is a multi-state cannabis company with a vision to be the soughtafter premium brand portfolio of innovative, high-quality cannabis & hemp products.
LEGAL_36167530.1
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Hollister uses a high margin model, controlling the whole process from manufacture to
sales to distribution or seed to shelf. Products from Hollister Biosciences Inc. include
HashBone, the brand's premier artisanal hash-infused pre-roll, along with concentrates
(shatter, budder, crumble), distillates, solvent-free bubble hash, pre-packaged flower, prerolls, tinctures, vape products, and full-spectrum high CBD pet tinctures. Hollister
Cannabis Co. additionally offers white-labeling manufacturing of cannabis products. Our
wholly-owned California subsidiary Hollister Cannabis Co is the 1st state and locally
licensed cannabis company in the city of Hollister, CA birthplace of the "American Biker".
Website: www.hollisterbiosciences.co
The CSE, nor its regulation services provider, does not accept responsibility for the adequacy or
accuracy of this release.
Forward-Looking Information
Forward-Looking Information: This news release includes certain statements that may be deemed
"forward-looking statements". The use of any of the words "anticipate", "continue", "estimate",
"expect", "may", "will", "would", "project", "should", "believe" and similar expressions are
intended to identify forward-looking statements. Although the Company believes that the
expectations and assumptions on which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking statements because the Company can
give no assurance that they will prove to be correct. Since forwardlooking statements address
future events and conditions, by their very nature they involve inherent risks and uncertainties.
These statements speak only as of the date of this News Release. Actual results could differ
materially from those currently anticipated due to a number of factors and risks including various
risk factors discussed in the Company's disclosure documents which can be found under the
Company's profile onwww.sedar.com
For further information: HOLLISTER BIOSCIENCES INC.: Investor Relations Contact,
Melanie Barbeau: mbarbeau@renmarkfinancial.com, Tel: (416) 644- 2020 or (212) 812-7680,
www.renmarkfinancial.com; Company Contact: Kelvin Lee: klee@k2capital.ca, Tel: 604-961-
Venom Extracts is now the engine that drives Hollister Biosciences, and Venom Extracts is ON FIRE. I can't wait to see Q1 earnings, which are due by the end of May. Hopefully they will release them closer to mid-month.
Subleasing likely to provide a path for out-of-state companies into Arizona’s recreational cannabis market
Published April 9, 2021 | By John Schroyer
Marijuana lease agreement
With the January launch of Arizona’s adult-use marijuana market, insiders predict strong growth in the number of out-of-state companies using a backdoor method to enter the burgeoning recreational industry there: subleasing space in large cultivation or manufacturing facilities.
The practice will allow out-of-state brands – and, to a lesser extent, Arizona marijuana startups – to tap into what is expected to be a large and rapidly growing market.
The 2021 Marijuana Business Factbook projects retail sales this year will reach between $250 million and $300 million and to grow to $1.3 billion-$1.5 billion by 2025.
Under Arizona’s cannabis regulations, the 130 existing marijuana business license holders – and the upcoming 26 social equity licensees – can apply for recreational permits to run both cultivation and manufacturing facilities to supply their storefronts.
Those cultivation and manufacturing centers don’t have size limits, meaning each license holder can build them out as large as they want – and then sublease space to other companies wanting to grow cannabis, manufacture their own edibles lines or produce other products.
To be sure, this isn’t a new phenomenon in Arizona: Multistate operator Harvest Health & Recreation, based in Tempe, has been subleasing space at some of its facilities since 2017.
But the launch of the new recreational market is expected to accelerate the trend, as more companies from outside Arizona begin figuring out a way to get in.
“There’s going to be a large number of manufacturing centers that come online in Arizona with incubator-like space for brands from Colorado or Oklahoma or California,” predicted Demitri Downing, founder of the Arizona Marijuana Industry Trade Association (MITA-AZ).
“Smart companies will come in, and they’re either going to have to buy (one of the 130 licenses) or sublease … to position themselves to have large manufacturing or cultivation hubs in Arizona – to get ready for interstate commerce – because of the lack of restrictions on the size,” he said.
“It’s a tremendous opportunity.”
How it works
Harvest CEO Steve White said his company has subleased space at some of its facilities to about 20 companies over the years. They’ve been mostly cultivators, but some manufacturers have been mixed in as well.
He expects there will be growing interest in the practice.
“For people who are serious about starting a business, given what licenses cost, this is a really easy alternative,” White said.
“You’re going to see people from other states look at different ways for them to enter the market, and your two choices are to find the ability to lease a license or spend upwards of $20 million to acquire your own.
“There are very few people who have the ability to say, ‘I’ll just pony up $20 million.’”
It’s up to each company to strike a deal with an Arizona license holder, and not all of the companies in the market have space to share.
Harvest is the largest licensee, with 19, and its inventory-supply needs are met without using all the cultivation and manufacturing permits attached to each of those licenses, White said.
So it only makes sense for Harvest to sublease out facilities it’s not using.
The market rate for space is typically $35,000-$55,000 a month for varying space sizes, White said, and he estimated that 50-60 of the companies in Arizona are already subleasing space in some of their facilities.
And, White noted, some companies strike differently structured deals with license holders – by trading equity in their companies for facility space, for example – instead of paying a flat monthly or annual rental fee, which is what Harvest prefers.
Downing said he knows some licensed operators that are planning to build out such facilities to take advantage of the subleasing option.
So the options for out-of-state companies are likely to increase in the near future.
“The owners are subleasing them out for $30,000 to $80,000 a month as a whole,” Downing said.
He added that some businesses have been subleasing entire facilities from license holders and then subleasing some of that space to other unlicensed marijuana companies.
High barriers to entry remain
The tricky part in getting such a deal to work is structuring a sublease to both parties’ liking and convincing license holders that the arrangement won’t come back to bite them.
“At the end of the day … it’s our license that’s on the line, regardless of who you bring in to operate it,” said Ryan Hurley, in-house counsel for Copper State Farms, which owns four marijuana business licenses in Arizona.
That means any potential violations of the law or industry rules by a company subleasing space from Copper State or Harvest or anyone else could become a major problem for the license holder, Hurley said.
Which is one of the reasons Copper State has stayed mostly out of the subleasing game so far.
“However you slice the deal, at the end of the day, it’s our license and compliance on the line, so I tend to be pretty cautious,” Hurley said.
On top of that, the capital requirements remain fairly high, Downing and White said.
A number of companies have tried to enter the market through subleasing and have failed.
“I would say $500,000 and a track record in another state. That’s mostly who these deals are appealing to,” Downing said when asked how much cash a company should have on hand and what profile license holders look for in potential tenants.
“It’s not that easy for just a mom-and-pop or some old-school O.G. who used to manufacture in the black market to come on over. They’re generally not welcome, because people are concerned about compliance.”
By the same coin, subleasing isn’t necessarily a guaranteed path to success.
Hurley said it’s easy to envision how a new company subleasing space from a license holder might wind up being more successful than the actual licensee.
That could create unwanted competition, which could easily lead to sour grapes or even a court fight.
“All the sales go through the same license at the end of the day. So, do you compete for shelf space? Sometimes those interests don’t align,” Hurley said.
But the practice isn’t going anywhere, Hurley added.
“It definitely has accelerated, because the market has gotten bigger, more people want to come in, other established brands from other states that are sophisticated are looking at it,” he said.
“I do think it is likely to increase, at least in the short term. I just question how successful many of them will be.”
John Schroyer can be reached at john.schroyer@mjbizdaily.com.
https://mjbizdaily.com/subleasing-a-path-into-arizona-recreational-cannabis-market-for-out-of-state-companies/
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About YourWay Cannabis Brands
YourWay Cannabis Brands is a publicly traded multi-state operator with sales and operations in 350+ dispensaries across the Western United States. Through building their own brands, partnering with others, and providing white-labelled product, they are dedicated to expanding their reach; remolding the cannabis industry and ultimately, redefining the way consumers and cannabis brands interact.
YourWay aims to connect with the cannabis consumer on a deeper level, utilizing decades of brand-building expertise and an integral understanding of the customer experience to create an intuitive suite of branded products that closely aligns with consumer need states. The YourWay portfolio is an all-encompassing house of brands designed to create a sense of belonging for every cannabis consumer regardless of their relationship with the plant. Please visit www.yourwaycannabis.com for the latest news and information about YourWay and its brands.
Website: www.yourwaycannabis.com
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