Hollister Biosciences Inc. Reports First Quarter 2021 Financial Results

  • First quarter revenue was USD $ 23.1 million against the USD $ 0.95 million in the first quarter of 2020 and up 97% from USD $ 11.7 million in the fourth quarter of 2020
  • First quarter net profit was USD $ 2.0 million compared to a net loss of USD $ 2.2 million in the first quarter of 2020
  • Adjusted EBITDA was USD $ 2.80 million in the first quarter compared to a loss of USD $ 1.1 million in the first quarter of 2020

VANCOUVER, British Columbia, June 1, 2021 / CNW / – Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the “Company“,”Hollister Cannabis Co.” or “Hollister“) a diversified cannabis brand company with products in over 280 dispensaries across California, and more than 95 dispensaries across Arizona, today released its financial and operating results for the first quarter of 2021. All financial information is presented in US dollars unless otherwise noted.

First Quarter 2021 Financial Results

  • Total sales for the first quarter were $ 23.1 million compared to $ 0.95 million in the first quarter of 2020 and up 97% sequentially from $ 11.7 million in the fourth quarter of 2020
  • First quarter net profit was $ 2.0 million compared to a net loss of $ 2.2 million in the first quarter of 2020
  • Adjusted EBITDA was $ 2.80 million in the first trimester compared to a loss of $ 1.1 million in the first quarter of 2020

Highlights of activity for the first quarter of 2021

  • At March 2nd, 2021, Hollister announced the closing of its negotiated private placement of 21,635,094 special warrants at a price of CDN $ 0.365 by special warrant, raising gross proceeds from CDN $ 7.9 million
  • At 8 Marche, 2021, Hollister was pleased to announce that its direct-to-consumer delivery platform, Dreamy Delivery, is the official delivery platform for the 2021 Emerald Cup Awards

Venom extracts (“Venom“) product suite is a category leader in Arizona, accounting for up to 30 percent of category sales statewide. Venom is positioned for continued growth Arizona, it has strong brand recognition and a distribution network, with products in the vast majority of dispensaries across the state.

Venom Extracts operates a 11K square foot facility located in Phoenix, AZ which can produce approximately 5 million grams of extract per year in its stream and> 15 million grams with planned equipment and production improvements.

Arizona is one of the largest medical marijuana markets in the world with over $ 1 billion in 2020 sales. Legal sales of cannabis for adult use in Arizona started at noon on Friday January 22nd, several months ahead of industry expectations, and the fastest any of the 15 states with recreational marijuana has gone from voter approval to actual sales. The state has realized $ 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 of turnover in its first year and more than $ 700 million by 2024. “

Use of non-GAAP financial measures

This press release includes certain non-GAAP financial measures as defined by the SEC. Reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP are included below. This information should be viewed as additional in nature and not as a substitute for or superiority to any performance measure prepared in accordance with GAAP. Our management uses Adjusted EBITDA to assess our operational performance and trends and to make planning decisions. Our management believes that Adjusted EBITDA helps identify underlying trends in our business that might otherwise be masked by the effect of items we exclude. Therefore, we believe that Adjusted EBITDA provides useful information for investors and others to understand and assess our operating results, improve the overall understanding of our past performance and future prospects, and allow greater transparency in this regard. which concerns the key financial indicators used by our management in its financial and operational decision-making.

Reconciliation of non-GAAP financial measures

The table below reconciles net income (loss) to Adjusted EBITDA for the periods indicated.

For the three
months ended
March 31, 2021

For the three
months ended
March 31, 2020



Net profit (loss) and comprehensive income (loss)

1 986 802


Add (deduct) the impact of:


3 150


304 041


Financial expenses



Exchange rate gain


Interest expense



Transaction costs


Interest income


Income tax expense


Deferred tax recovery


Foreign currency conversion adjustment



Adjusted EBITDA



About Hollister Biosciences Inc.

Hollister Biosciences Inc. is a multi-state company with a portfolio of innovative, high-quality branded cannabis and hemp consumer products and white-labeled manufacturing. Our products are sold in 370 dispensaries across Arizona and California. Hollister Biosciences’ wholly owned brand, Venom Extracts, is a leading brand in its category that sold over 4 million grams in 2020, accounting for up to 30% of category sales in Arizona.

Hollister Biosciences Inc. products include HashBone, the brand’s first artisanal hash-infused pre-roll, as well as concentrates (shatter, budder, crumble), distillates, solvent-free bubble hash, prepackaged flowers , pre-rolls, tinctures, full-spectrum, CBD-rich vaping products for pets. Our exclusive property California subsidiary Hollister Cannabis Co is the first state and local licensed cannabis company in the city of Hollister, California, birthplace of the “American Biker”.

Website: www.hollisterbiosciences.co

The CSE, nor its regulatory services provider, accepts no responsibility for the adequacy or accuracy of this release.

Forward-looking information: This press release contains certain statements which may be considered “forward-looking statements”. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “may”, “want”, “would”, “plan”, “should”, “believe” and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions upon which forward-looking statements are based are reasonable, one should not place undue reliance on forward-looking statements because the Company can give no assurance that they will prove to be correct. Because forward-looking statements relate to future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this press release. Actual results could differ materially from those currently expected due to a number of factors and risks, including various risk factors discussed in the Company’s disclosure documents which can be found under the Company’s Profile on www.sedar.com

SOURCE Hollister Biosciences Inc.

For more information: Company contact: Melanie Barbeau, [email protected], Tel: (416) 644-2020 or (212) 812-7680

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