/C O R R E C T I O N from Source -- Hollister Biosciences Inc./

In the news release, Hollister Biosciences Inc. Provides Update on Q4 2020 Performance Including CDN $14.93 Million in Revenue With an Estimated CDN $5.53 Million in EBITDA a YoY Revenue Increase of 3215% from Q4 2019, issued 07-Jan-2021 by Hollister Biosciences Inc. over CNW, we are advised by the company that the title should read "CDN $2.53 Million in EBITDA " rather than "CDN $5.53 Million in EBITDA" as originally issued inadvertently. The complete, corrected release follows:

Hollister Biosciences Inc. Provides Update on Q4 2020 Performance Including CDN $14.93 Million in Revenue With an Estimated CDN $2.53 Million in EBITDA a YoY Revenue Increase of 3215% from Q4 2019

VANCOUVER, BC, Jan. 7, 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 90 dispensaries throughout Arizona, is pleased to provide an update on its Q4, 2020 performance.

Q4 2020 Update

For the period beginning October 1^st, 2020 and ending December 31^st, 2020, Hollister reports that it generated record quarterly revenue of CDN$14.93 million and CDN$2.53 million in EBITDA from its product line of pre-rolls, concentrates, distillates, solvent-free bubble hash, pre-packaged flower, tinctures and vape products. The Company cautions that revenue and EBITDA figures have not yet been audited and are based on reports prepared by management.

"We are very pleased with our ability to deliver record quarterly revenue in such a challenging market environment. We attribute our revenue growth to further penetration of the California and Arizona dispensary networks and successful new product launches with our joint venture partners. Sales of cannabis related products continue to show resilience throughout the COVID-19 pandemic. We hope to continue this positive momentum into 2021" stated Alex Somjen, President.

The Venom Extracts ("Venom") branded product suite distributed throughout Arizona has been the primary catalyst for revenue growth of the Company. As of March 26^th, 2020 (see press release dated March 30th, 2020), Hollister Biosciences acquired Venom.  Since the closing, in the three quarters following, Venom contributed approximately CDN$38 million to the company's 2020 revenue.  In the entire year of 2020, Venom Extracts generated greater than CDN$ 40 million in revenue (and CDN$ 4.9 million in adjusted EBITDA), up from CDN$ 16.4 million in 2019 a 144% year over year revenue increase, and ending the year with a record month of sales for December totaling approximately CDN$5.5 million.

Venom Extracts sold over 4 million grams of product in 2020 accounting for up to 30 percent of category sales statewide in Arizona. The brand is positioned for continued growth in Arizona with the recently passed adult-use legislation, and endeavors to expand into California and benefit from the company's infrastructure and sales network of over 280 dispensaries. Marijuana Business Daily projects that Arizona's recreational market could generate up to $400 million in revenue its first year and more than $700 million by 2024.

In addition to Venom Extracts, Hollister's HashBone pre-rolls are the No. 1 hash-infused pre-roll in California and one of Hollister's signature products. The company recently 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 HashBone Minis line in April of 2020. HashBone is now available in 280 dispensaries throughout California, a 40% increase since 2019.

In addition to record revenue growth, the company continued focus on core growth areas; enhancing existing product margins, expanding product penetration and same-store sales in California and Arizona, while continuing to diversify and expand its branded product portfolio. Some highlights of these efforts include completed agreements with Tommy Chong's Cannabis (See press release dated February 7th, 2020) and EasyRiders (See press release dated December 15^th, 2020) to add to the company's brand suite as well as the launch of the Dreamy Delivery direct-to-consumer platform (see press release dated December 22^nd, 2020 ) in San Francisco and Sacramento, and ongoing supply chain enhancements are in-review to improve operational efficiency and profit margins by controlling inputs and manufacturing.

The company looks forward to continuing to execute on its business plan and growth targets in 2021 and ahead.

About Hollister Biosciences Inc.

Hollister Biosciences Inc. is a multi-state cannabis company with a vision to be the sought-after premium brand portfolio of innovative, high-quality cannabis & hemp products. 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, pre-rolls, 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.hollistercannabisco.com

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 onwww.sedar.com

This press release includes reference "EBITDA" and "adjusted EBITDA", which are non-International Financial Reporting Standards ("IFRS") financial measures. Non-IFRS measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. The Company defines EBITDA as earnings before interest, tax, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted by removing other non-recurring or non-cash items, including the unrealized change in fair value and realized fair value adjustments on inventory sold in the period, share-based compensation expenses, depreciation of right-of-use assets, revaluation adjustments of financial assets and liabilities measured on a fair value basis and non-recurring transaction costs included in operating expenses. EBITDA and Adjusted EBITDA have no direct comparable IFRS financial measures. The Company has used or included these non-IFRS measures solely to provide investors with added insight into the Company's financial performance. Readers are cautioned that such non-IFRS measure may not be appropriate for any other purpose. Non-IFRS measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

SOURCE Hollister Biosciences Inc.

HOLLISTER BIOSCIENCES INC.: Investor Relations Contact, Melanie Barbeau: [email protected], Tel: [phone] or [phone], www.renmarkfinancial.com; Company Contact: Kelvin Lee: [email protected], Tel: [phone]