Hollister Biosciences 100% Owned Subsidiary Venom Extracts Achieves Final $40 Million Revenue Milestone
VANCOUVER, BC, Dec. 10, 2020 /CNW/ - Hollister Biosciences Inc. (CSE: HOLL) (OTCPK: HSTRF) (FRANKFURT: HOB) (the "Company", "Hollister Cannabis Co." or "Hollister") a diversified cannabis branding company with products in over 230 dispensaries throughout California, and over 80 dispensaries throughout Arizona, is pleased to announce that further to the news release dated March 30th, 2020, its 100% owned subsidiary, Venom Extracts ("Venom") has achieved its second of two revenue milestones in accordance with the terms of the definitive agreement that was entered in connection with the acquisition of Venom by the Company (the "Transaction").
On December 9th, 2020, Venom achieved the second and final revenue milestone by generating in excess of CDN$40,000,000 of revenue calculated from January 1st, 2020. Hollister also reports that Venom generated CDN$ 4.8 million in adjusted EBITDA over the same period. As a result, the Company will issue 9,870,018 common shares (the "Earn-Out Shares") to certain former Venom shareholders at a deemed price of $0.20 per Earn-Out Share. The Earn-Out Shares will not be subject to any hold period under applicable securities laws.
On November 4th the state of Arizona passed Prop 207 authorizing the Adult Use of Cannabis. Arizona is a mature, limited license medical market with 123 Operational Dispensaries as of 10/31/20, and 287,715 patients reported as of September 2020. "The victory also puts Arizona on pace to create one of the biggest new marijuana markets in the country. The Arizona recreational market could generate as much as USD $375 million-$400 million in its first year and $700 million-$760 million by 2024, according to projections by Marijuana Business Daily."
Venom Extracts is a leading concentrate brand in Arizona, accounting for between 25-30% of category sales. Venom has 8 sku's with varying product forms including; Shatter, Crystals, Nectar Sauce, Sugar Wax, Live Resin, Diamond Sauce, THC-A, and Vape Cartridges. Venom products can be found in over 80 retail locations including Arizona's market leader; Harvest Health and Recreation (CSE:HARV, OTCMKTS: HRVSF), leading multi-state cannabis operator Curaleaf (CSE:CURA, OTCMKTS: CURLF), MUV by Atlmed and other leading dispensaries.
"We are very proud of the Arizona team and their ability to achieve this final revenue milestone and market leadership position. We look forward to continuing the growth of our Arizona platform as it transitions to an adult use market." shared Carl Saling, CEO of Hollister.
None of the securities to be issued pursuant to the Transaction have been or will be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and any securities issued pursuant to the Transaction are anticipated to be issued in reliance upon available exemptions from such registration requirements pursuant to Rule 506(b) of Regulation D and/or Section 4(a)(2) of the U.S. Securities Act and applicable exemptions under state securities laws. In addition, the securities issued under an exemption from the registration requirements of the U.S. Securities Act will be "restricted securities" as defined under Rule 144(a)(3) of the U.S. Securities Act and will contain the appropriate restrictive legend as required under the U.S. Securities Act.
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.
Non-IFRS Financial Measures: This news release makes reference to certain non–IFRS financial measures. These 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. These measures are provided as additional information to complement the IFRS financial measures by providing further metrics to understand the Company's results of operations from management's perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We use non–IFRS financial measures, including segmented revenue and adjusted EBITDA, to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS financial measures.
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
SOURCE Hollister Biosciences Inc.
HOLLISTER BIOSCIENCES INC.: Investor Relations Contact: Melanie Barbeau: [email protected], Tel: (416) 644-2020 or (212) 812-7680, www.renmarkfinancial.com; Company Contact: Kelvin Lee: [email protected], Tel: 604-961-0296
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