Hollister Biosciences Inc. 's Profile

A vertically integrated Cannabis company with products in 280 California dispensaries, over 90 dispensaries throughout Arizona, joint ventures, licensing agreements and partnerships with Global brands. Q4- 2020 performance includes CDN $14.93M in revenue with an estimated CDN $2.53 million in EBITDA a YoY revenue increase of 3215% from Q4 2019.

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Hollister Biosciences Inc. Announces Appointment of Two New Board Members; Kevin Harrington, an original "Shark" from the NBC hit TV series…
AGORACOM-KE
August 31
Hollister Biosciences Inc.
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HOLL
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267,784,732 as of 03/31/2021
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Hollister Biosciences Inc. 's Bulletin

Hollister Biosciences Inc. Announces Appointment of Two New Board Members; Kevin Harrington, an original "Shark" from the NBC hit TV series "Shark Tank" and Jakob Ripshtein, the former CFO of Diageo North America and President of Aphria VANCOUVER, BC , Aug. 31, 2021 /PRNewswire/ - Hollister Biosciences Inc. (HOLL: CSE) (HSTRF: OTC) (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 19 th , 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 toC$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". Website: www.hollisterbiosciences.co CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: 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 atwww.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.
PR Newswire 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 /PRNewswire/ - Hollister Biosciences Inc. (HOLL: CSE) (HSTRF: OTC) (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 5 th , 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 8 th , 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 17 th , 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 28 th , 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 endedJune 30, Six months endedJune 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". Website: www.hollisterbiosciences.co CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: 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.
Hollister Biosciences Inc. Announces 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 PR Newswire 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 /PRNewswire/ - Hollister Biosciences Inc. (HOLL: CSE) (HSTRF: OTC) (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 Provides higher cannabinoid starting materials improving existing operational throughput 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". Website: www.hollisterbiosciences.co CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: 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.  View original content to download multimedia: https://www.prnewswire.com/news-releases/hollister-biosciences-inc-announces-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-301362659.html SOURCE Hollister Biosciences Inc.