They bought a company that gave them over $600,000 in 8 days! I think the party is about to begin :)
This stands out for me from the MD&A published July 16, 2020. Venom extracts is a company they acquired for .20 cents a share! At today’s price it is like we got a 60% discount at today’s rate. The previous owners of Venom can sell their shares after a voluntary hold at May30, June 30 and August 30. The revenue from Venom that ended up on the books for Hollister was $667,513 for EIGHT DAYS!!! This is very very very big in my mind.... how about yours? That and Hashbone sales increased greatly also. Throw in Tommy Chong branding and Alpha Mind mushrooms and I would say... as long as these reports are on the up and up we have a winner! Ding! Ding! Ding! Quoted from the MD&A material
“ Gross revenue for the three months ended March 31, 2020, increased by approximately $949,000 or 350% compared to the prior year, as the Company increased sales of existing products (pre-rolls and vape cartridges) and realized the revenues from Venom Extracts from the date of acquisition to the end of the quarter which resulted in the company recognizing $667,513 revenue from March 24, 2020 to March 31, 2020.
The composition of revenue for the three months ended March 31, 2020, included the following:
• $692,875 – concentrates
• $158,603 – Hash Bone (as described in “Corporate Outlook” above)
• $86,847 – contract manufacturing services
• $10,573 – other product sales
Comparatively, the composition of revenue for the three months ended March 31, 2019, was substantially comprised of sales of hash
bone, pre-rolls and vape cartridges which totaled $69,727, $64,188 and $$62,386, respectively, for a combined 95% of revenue.
Gross profit remained negative for the three months ended March 31, 2020, compared to the prior year, primarily due to certain increases in cost of sales. Specifically, the $1,015,434 increase was driven by increased sales of Hollister Cannabis Company and the newly acquired Venom Extracts, which was supplemented by a one-time increased rent charge of $245,928 recorded within cost of sales. The increase in cost of sales was also attributable to increases in most other cost components of inventory.
The portion of cost of sales that related specifically to inventory (product, labour, testing, and supplies) amounted to $349,979 during the three months ended March 31, 2020 (2019 - $57,202), or 89% (2019 - 20%) of revenue. Key drivers in percentage fluctuations of cost of sales relative to revenue is driven by fluctuating market prices of biomass inputs (product), as well as the addition of new production employees during the quarter and the acquisition of Venom Extracts.
Operating expenses increased during the three months ended March 31, 2020, relative to the three months ended March 31, 2019 by $1,623,129 driven by increases in all components of operating expenses except accretion expense, licenses and permits and travel and meals. The increase in expenses represented the continual evolution of the Company’s activities and expansion of sales efforts including its increasing its sales mix and customer acquisition efforts. The most significant changes in operating expenses and other expenses....” you can find the whole list of most recent filings at sedar.com
