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
VANCOUVER, BC, May 31, 2021 /PRNewswire/ - 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.
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
SOURCE Hollister Biosciences Inc.
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