“The Man Behind the Brands”, Ullmann brings significant experience in celebrity brand development, brand management, licensing and distribution, and monetization
Announcement highlights Company’s commitment to global growth
VANCOUVER, BC, Dec. 16, 2021 /CNW/ – YourWay Cannabis Brands (CSE: YOUR) (the “Company” or “YourWay“) announced today the appointment of Bernt Ullmann to its previously announced Advisory Board. Chaired by YourWay Board of Directors member Kevin Harrington, the Advisory Board is expected to consist of exceptional industry leaders from diverse backgrounds to support and guide the Company’s go-forward strategy.
“We are excited to thoughtfully recruit industry leaders who will bring invaluable experience and help guide our business, complementing YourWay’s strong leadership team. This starts with the appointment of Bernt Ullmann as our inaugural Advisory Board member,” said Kevin Harrington, Chair, Advisory Board, Member, Board of Directors, YourWay Cannabis Brands. “The Company is implementing its “house of brands” cannabis consumer packaged goods strategy and, as one of the most trusted business acceleration experts, Mr. Ullmann’s remarkable experience will lend tremendously towards the Company’s growth ambitions.”
Having generated more than six billion dollars in transactions, Mr. Ullmann will lend his significant experience in celebrity brand development, brand management, licensing and distribution, and monetization to the Company. Mr. Ullmann provides mastery in creating, incubating, developing, marketing and distributing leading global lifestyle brands for superstars such as Jennifer Lopez, Marc Anthony, Nicki Minaj and Adam Levine.
“Bernt is one of the most experienced brand builders and strategists in the world and his insights and experience are anticipated to help to ensure YourWay brands are positioned for success. The Company has made key appointments to bolster its leadership team, which is focused on the next phase of growth and strategic transformation. The addition of Bernt is another key milestone that highlights our commitment to grow the business and drive shareholder value,” continued Mr. Harrington.
“I am thrilled to be joining YourWay Cannabis Brands’ Advisory Board and help contribute to the company’s growth strategy,” said Bernt Ullmann, Member, Advisory Board, YourWay Cannabis Brands. “The Company and I have a shared passion for building powerful brands that serve our consumers and bring value to our shareholders, and I am excited to leverage my decades of experience developing world-renowned brands in ensuring YourWay’s go-forward strategy is fully realized.”
About Bernt Ullmann, CBA
Often referred to as “The Man Behind the Brands”, Mr. Ullmann has been the trusted business acceleration expert for top fashion moguls and billionaires such as Daymond John, Eddie Lampert, and Tommy Hilfiger.
Mr. Ullmann is arguably the world’s leading expert in celebrity brand development, brand management, licensing, distribution and monetization, having contributed to the successful launches of brands for clients including Jennifer Lopez, Adam Levine, Nicki Minaj and many others. The brands he has worked with have generated over 6 billion dollars in global sales, which includes the largest celebrity brand deal in history valued at $3.5 billion.
About YourWay Cannabis Brands
YourWay Cannabis Brands is a publicly traded multi-state operator with sales and operations in Arizona and California. 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.
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 composition of the Company’s Advisory Board; the implementation of the Company’s ‘House of Brands’ cannabis consumer packaged goods strategy; the anticipated benefits of Mr. Ullmann’s appointment to the Company’s 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 United States 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 United States 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.
SOURCE YourWay Cannabis Brands
For further information: Company Contact: For media inquiries, please contact: [email protected]; For investor inquiries, please contact: Joshua Lavers: [email protected], Tel: (416) 644-2020 or (212) 812-7680
Rebrand is part of previously announced strategic transformation Unveiled new name, logo aligned with commitment to ‘House of Brands’ strategy [Announced stock ticker change to ‘YOUR’ effective December 16, 2021]
VANCOUVER, BC, Dec. 14, 2021 /CNW/ – Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the “Company” or “Hollister“) today launched its previously announced rebrand to YourWay Cannabis Brands Inc. (“YourWay Cannabis Brands” or “YourWay“).
Hollister, with cannabis operations in California and Arizona, has completed an extensive rebranding to align with the Company’s strategic corporate transformation and renewed corporate vision. At the heart of the rebrand is the change of the Company’s name to YourWay Cannabis Brands. This update is tied directly to the Company’s revamped strategic commitment to creating intuitive brands, releasing thoughtful products, and working intentionally to create a ‘House of Brands’ that caters to every moment in a consumer’s life.
“As a pioneer in the industry, I’ve experienced a magnitude of evolution over the past few years. From watching brands that seemingly hatched overnight flood the market to seeing companies attempt differentiation through product innovation,” said Jake Cohen, Chief Executive Officer, YourWay Cannabis Brands. “The one thing that has been missing, is an organization committed to truly putting the consumer and their cannabis needs first. Our focus at YourWay is to provide the consumer with the right brands and the right products for every occasion so they can maximize the quality of their experience each time they interact with the product.”
YourWay Cannabis Brands was built with one simple driving principle in mind: to keep the consumers’ needs and wants center-stage with every decision they make. Our mission is to build a comprehensive house of brands that consumers relate with – regardless of their relationship with the plant – ensuring every individual has brands that enhance each occasion, and products that fit their lifestyles.
“Having worked with the world’s most prominent brands for over 30 years, we know what it takes to be a truly consumer-centric business, and how to create a portfolio of brands that intuitively revolve around the needs and wants of consumers,” said Chris Lund, Chief Commercial Officer, YourWay Cannabis Brands. “We believe the next big cannabis breakthrough won’t only come from the pursuit of the highest potencies, new strains, or product innovation, but through creating powerful brands that consumers feel connected to.”
A dedication to creating a family of brands that consumers can see themselves in will guide the creation and release of a thoughtful suite of occasion-based branded products that management believes will garner increased basket sizes for retailers. The new and dynamic YourWay leadership team has a profound understanding of industry dynamics and consumer psychographics, utilizing decades of brand-building expertise and integral insight on the customer experience to develop brands that fill current gaps in the marketplace.
With its strong balance sheet and refined strategy for success, YourWay believes it is poised to take the industry by storm.
The Company also announced effective December 16, 2021, its shares will trade on the Canadian Securities Exchange (“CSE“) under the symbol “YOUR”. In the interim, shares will continue to trade under “HOLL” on CSE, “HSTRF” on OTC Market Group, and “HOB” on Frankfurt Stock Exchange. No action is required by existing shareholders with respect to the ticker symbol change.
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.
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 date of the Company’s change in ticker symbol on the CSE; the implementation of the Company’s ‘House of Brands’ cannabis consumer packaged goods strategy; the Company’s rebranding; management’s expectations regarding increased basket sizes; 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 United States 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 United States 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.
SOURCE YourWay Cannabis Brands
For further information: Joshua Lavers: [email protected], Tel: (416) 644-2020 or (212) 812-7680
VANCOUVER, BC, Nov. 18, 2021 /CNW/ – Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the “Company”, “Hollister Cannabis Co.” or “Hollister”) today announced it will release its third quarter fiscal year ended September 30, 2021 after market close on Monday, November 29, 2021.
Following the release of its third quarter financial results, the Company will hold a conference call on Tuesday, November 30, 2021 at 4:00pm ET.
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”.
Revenue of $14.5 million increased 53% from prior year period Gross profit income of $3.5 million increased 151% from prior year period Net income was $0.4 million versus a loss of $0.6 million in prior year period Adjusted EBITDA was $1.2 million, versus a loss of $0.6 million in prior year period Maintained a strong liquidity position, including a cash & cash equivalents balance of $7.6 million, an increase of 300% from prior year quarter
VANCOUVER, BC, Nov. 29, 2021 /CNW/ – Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the “Company” or “Hollister“) today announced its financial results for the third quarter fiscal 2021 ended September 30, 2021. All financial information is presented in U.S. dollars unless otherwise indicated.
“We delivered another solid quarter, continuing to drive year-over-year growth. Our performance in this quarter was driven by organic growth of our core business, Venom Extracts. As we approach the end of our final quarter and the beginning of a period of transformation, our strengthened and experienced leadership team is laser focused on creating shareholder value, delivering sustainable profitable growth, keeping operating costs low, and scaling the Company for optimal global success.” – Jake Cohen, Chief Executive Officer, Hollister
“Hollister’s third quarter results demonstrate the strength of our business and commitment to executing against our strategy. With its strong balance sheet, we believe the Company is well positioned and prepared for growth as it continues on its strategic transformation.” – Eula Adams, Chief Financial Officer, Hollister
Third Quarter 2021 Financial Results
Total revenue was $14.5 million, an increase of $5 million or 53% compared to the prior year period.
Gross profit was $3.5 million compared to $1.4 million for the prior year period.
Net income was $0.4 million versus a loss of $0.6 million in the prior year period.
Adjusted EBITDA was $1.2 million compared to a loss of $0.6 million in the prior year period.
Cash and cash equivalents was $7.6 million, a 300% increase as compared to $1.9 million at June 30, 2020.
Third Quarter 2021 Business Highlights
On July 13th, 2021, the Company announced it was added as an index constituent in the Solactive US Marijuana Companies Index (the “Index“) 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).
On August 25th, 2021, the Company announced ‘Hollister Brand Campus‘ (the “Campus“) a 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.
On August 31st, 2021, the Company announced two new board members, Mr. Kevin Harrington, an original “Shark” from the NBC hit TV series “Shark Tank” and Mr. Jakob Ripshtein, the former CFO of Diageo North America and President of Aphria Inc.
Recent Events
On October 18th, 2021, the Company announced 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, including:
Appointment of:
Jacob Cohen as Chief Executive Officer
Eula Adams as Chief Financial Officer
Chris Lund as Chief Commercial Officer
Jill Karpe as Senior Vice President of Admin and Finance;
Refocused business strategy to develop a “house of brands” focused on cannabis consumer packaged goods;
Initiated rebranding corporate identity and name of the company; and
Reduction of expenses and resource allocation on non-core business activities.
On November 2nd, 2021, the Company announced it 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”.
On November 23rd, 2021, all matters put forward before the Company’s shareholders for consideration and approval, as listed in the management information circular of the Company dated October 18, 2021 (the “Circular“), were approved by the requisite majority of votes cast at the Company’s Annual General and Special Shareholder Meeting. This includes the election of all six (6) Board of Director nominees listed in the Circular: Jakob Ripshtein, Jacob Cohen, Eula Adams, Lily Dash, Kevin Harrington, and Brett Mecum.
Outlook The Company believes the outlook is strong and has developed a solid strategy supported by strong operational, financial and leadership capabilities. In January 2021, the state of Arizona enacted sales of adult-use cannabis ahead of industry expectations. The Company recognized a substantial increase in demand for its branded goods and bulk wholesale products, creating a larger volume of sales in the first half of the year as dispensaries and brands readied for inventory for the market change. During Q3 2021 and beyond the Company focused its efforts on improving sales of higher margin products and aligning supply and demand to flow with the seasonality of the Arizona and cannabis markets at large. Management reports that January through November sales are estimated to exceed $64.5 million. Management believes the previously forecasted guidance of $70 million is achievable and driven by sales of finished and bulk products in the company’s core market of Arizona. Historically, fourth quarter sales in Arizona improved versus summer months due to local population increases from seasonal residents returning and holiday visitors. The overall Arizona market demand has seen improvements in the categories that the company operates and is expected to continue.
Sales through the end of November are preliminary and are unaudited and subject to change and adjustment when the Company prepares its audited consolidated financial statements for the year ended December 31, 2021. Accordingly, investors are cautioned not to place undue reliance on the foregoing information. The preliminary results provided in this news release constitute “forward-looking information” 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. See “Cautionary Statement Regarding Forward-Looking Information”.
The Company will continue optimizing its platform in Arizona through improved same-store sales, loyalty, and expanding its product portfolio and market penetration. The recently announced Campus project is progressing and once production has commenced it is expected to provide the Company with substantially reduced direct material costs, resulting in improved gross margin. The Campus also has ample space to expand production of higher margin finished products.
As previously announced, the Company is moving forward, implementing its “house of brands” cannabis consumer packaged goods strategy which includes manufacturing and distribution of owned and partner branded cannabis products in chosen markets. Additionally, the Company is planning to rationalize its existing brand and product portfolio, dedicating efforts towards new, highly targeted brand partnerships and the acquisition or development of owned brands.
On the corporate development front, the process to rebrand the Company and to align it with its refined strategy has commenced. Campaigns to improve awareness and broaden the shareholder base are being developed.
The Company has placed certain non-core assets including its California operations in a care and maintenance program to reduce expenses and improve overall financial and operational performance.
In addition to operational, financial, governance and strategy improvements, the Company has also been dedicating efforts to enter new markets with its existing brands.
USE OF NON-IFRS FINANCIAL MEASURES This press release includes certain non-IFRS financial measures. Reconciliations of these non-IFRS financial measures to the most directly comparable financial measure calculated and presented in accordance with IFRS 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 IFRS. The Company’s management team uses adjusted EBITDA to evaluate operating performance and trends and to make planning decisions. The Company’s management team believes adjusted EBITDA helps identify underlying trends in the business that could otherwise be masked by the effect of the items that are excluded. Accordingly, the Company believes that adjusted EBITDA provides useful information to investors and others in understanding and evaluating the operating results, enhancing the overall understanding of 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.
The table below reconciles net income (loss) and comprehensive income (loss) to Adjusted EBITDA (Loss for the three and nine months ended September 30, 2021 and 2020:
About Hollister Hollister is a multi-state company with a portfolio of innovative, high-quality cannabis & hemp branded consumer products and white-labeling manufacturing. The Company’s products are sold in 370 dispensaries across Arizona and California. Hollister’s 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 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. The Company’s 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”.
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” within the meaning of applicable Canadian securities laws, such information is being provided as preliminary financial and operational results and 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. 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 Campus; the implementation of the Company’s “house of brands” cannabis consumer packaged goods strategy; the Company’s rebranding; 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. Financial outlooks, 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 estimated revenue provided in this news release.
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: the Company’s financial results, including the Company’s revenue for the year to date will be as projected; 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 United States 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 United States 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.
SOURCE Hollister Biosciences Inc.
For further information: Company Contact: Joshua Lavers: [email protected], Tel: (416) 644-2020 or (212) 812-7680
VANCOUVER, BC, Nov. 23, 2021 /CNW/ – Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the “Company” or “Hollister Biosciences“) today announced results of its 2021 Annual General and Special Shareholder Meeting (the “Meeting“) held on November 22, 2021.
All of the matters put forward before the Company’s shareholders for consideration and approval, as listed in the management information circular of the Company dated October 18, 2021 (the “Circular“), were approved by the requisite majority of votes cast at the Meeting. This includes the election of all six (6) Board of Director nominees listed in the Circular: Jakob Ripshtein, Jacob Cohen, Eula Adams, Lily Dash, Kevin Harrington, and Brett Mecum.
Shareholders approved the creation of a new class of shares designated as proportionate voting shares (“PVS“). As previously announced, holders of PVS will be entitled to 1,000 votes in respect of each PVS held. No dividend will be declared or paid on the PVS unless the Company simultaneously declares or pays, as applicable, equivalent dividends (on an as converted to common share basis) on the common shares in the capital of the Company (the “Common Shares“). In addition, each PVS will be convertible into 1,000 Common Shares.
Promptly following the filing of a notice of alteration to its articles by the Company, Carl Saling has agreed to convert 26,814,400 Common Shares into PVS and Jake Cohen has agreed to convert 48,762,400 Common Shares into PVS. Mr. Saling and Mr. Cohen have also each agreed not to convert the PVS back into Common Shares until July 2, 2022.
The PVS are being created in order to minimize the proportion of the outstanding voting securities of the Company that are held by “U.S. persons” for purposes of determining whether the Company is a “foreign private issuer” for purposes of United States securities laws.
Board of Director Biographies
Mr. Jakob Ripshtein, CPA – Mr. Ripshtein 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“) (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 CEO of Perennial Brands Inc., a full life-cycle brand strategy organization.
Mr. Jacob Cohen – Mr. Cohen is the founder of Venom Extracts, one of the industry’s premier award- winning cannabis concentrate brands. Commencing in March 2020, Venom Extracts sales were consolidated with the Company’s sales 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.
Mr. Eula Adams – Mr. Adams 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, Mr. Adams 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.
Mr. Adams 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 the 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.
Mr. Adams 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.
Lily Dash, ESQ – Ms. Dash’s background includes extensive governance, legal, transactional and emerging markets experience. Ms. Dash is a practicing lawyer, a dynamic entrepreneur with global experience, and a visionary technology and ESG founder. Ms. Dash’s vast experience and perspective will support the Company’s growth and expansion. Ms. Dash 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.
Mr. Kevin Harrington – Mr. 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. Mr. Harrington 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, Mr. Harrington 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 has grown into a leading brand in the functional and energy beverage categories. Mr. Harrington 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.
Brett Mecum – Mr. Mecum 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.
Mr. Mecum 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. Mr. Mecum is also regarded as a policy expert in the Blockchain and Cryptocurrency space and was the catalyst behind the state of Arizona creating its first Blockchain and Cryptocurrency task force.
About Hollister Biosciences
Hollister Biosciences is a multi-state company with a portfolio of innovative, high-quality cannabis & hemp branded consumer products and white-labeling manufacturing. The Company’s 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 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. The Company’s 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”.
VANCOUVER, BC, Nov. 2, 2021 /CNW/ – 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”.
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.
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.
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 creation of proportionate voting shares at the AGM; 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.
SOURCE Hollister Biosciences Inc.
For further information: Company Contact: Joshua Lavers: [email protected], Tel: (416) 644-2020 or (212) 812-7680
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
VANCOUVER, BC, Oct. 12, 2021 /CNW/ – 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, CPA Jakob 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, ESQ Lily 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 Mecum Brett 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.
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 Board and management; the Company’s planned rebrand; the timing for the AGM; the individuals to be nominated at the AGM for election to serve as directors; 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.
SOURCE Hollister Biosciences Inc.
For further information: Chris Lund, [email protected], 602-675-4317
VANCOUVER, BC, Aug. 31, 2021 /CNW/ – 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”.
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.
SOURCE Hollister Biosciences Inc.
For further information: Company Contact: Joshua Lavers: [email protected], Tel: (416) 644-2020 or (212) 812-7680
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 /CNW/ – 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.
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.
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”.
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.
SOURCE Hollister Biosciences Inc.
For further information: Company Contact: Joshua Lavers: [email protected], Tel: (416) 644-2020 or (212) 812-7680
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 /CNW/ – 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.
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 office 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
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 efficiency
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”.
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.
SOURCE Hollister Biosciences Inc.
For further information: Company Contact: Joshua Lavers: [email protected], Tel: (416) 644-2020 or (212) 812-7680
