In the news release, Hollister Biosciences Inc. Provides Update on Q4 2020 Performance Including CDN $14.93 Million in Revenue With an Estimated CDN $5.53 Million in EBITDA a YoY Revenue Increase of 3215% from Q4 2019, issued 07-Jan-2021 by Hollister Biosciences Inc. over CNW, we are advised by the company that the title should read "CDN $2.53 Million in EBITDA " rather than "CDN $5.53 Million in EBITDA" as originally issued inadvertently. The complete, corrected release follows:
Hollister Biosciences Inc. Provides Update on Q4 2020 Performance Including CDN $14.93 Million in Revenue With an Estimated CDN $2.53 Million in EBITDA a YoY Revenue Increase of 3215% from Q4 2019
($60 million Revenue runrate for Q4/20)
VANCOUVER, BC, Jan. 7, 2021 /CNW/ - Hollister Biosciences Inc. (CSE: HOLL) (OTC: HSTRF) (FRANKFURT: HOB) (the "Company", "Hollister Cannabis Co." or "Hollister") a diversified cannabis branding company with products in over 280 dispensaries throughout California, and over 90 dispensaries throughout Arizona, is pleased to provide an update on its Q4, 2020 performance.
Q4 2020 Update
For the period beginning October 1st, 2020 and ending December 31st, 2020, Hollister reports that it generated record quarterly revenue of CDN$14.93 million and CDN$2.53 million in EBITDA from its product line of pre-rolls, concentrates, distillates, solvent-free bubble hash, pre-packaged flower, tinctures and vape products.
.... revenue growth to further penetration of the California and Arizona dispensary networks and successful new product launches with our joint venture partners.
....Venom Extracts sold over 4 million grams of product in 2020 accounting for up to 30 percent of category sales statewide in Arizona.
....The Venom Extracts ("Venom") branded product suite distributed throughout Arizona has been the primary catalyst for revenue growth of the Company.
...... Since the closing, in the three quarters following, Venom contributed approximately CDN$38 million to the company's 2020 revenue..... and CDN$ 4.9 million in adjusted EBITDA
( $51 million for a full year )
..... and Venom ending the year with a record month of sales for December totaling approximately CDN$5.5 million.
( ( $66 million for Venom )
....The brand is positioned for continued growth in Arizona with the recently passed adult-use legislation, and endeavors to expand into California and benefit from the company's infrastructure and sales network of over 280 dispensaries.
....Marijuana Business Daily projects that Arizona's recreational market could generate up to $400 million in revenue its first year and more than $700 million by 2024.
.....In addition to Venom Extracts, Hollister's HashBone pre-rolls are the No. 1 hash-infused pre-roll in California and one of Hollister's signature products.
The company recently received trademark approval for the HashBone brand in December. These premium hash-infused pre-rolls feature an artisan blend of 75 percent top-shelf flower and 25 percent cold water bubble hash.
.... Hollister added a new HashBone Minis line in April of 2020. HashBone is now available in 280 dispensaries throughout California, a 40% increase since 2019.
....In addition to record revenue growth, the company continued focus on core growth areas; enhancing existing product margins, expanding product penetration and same-store sales in California and Arizona, while continuing to diversify and expand its branded product portfolio.
....Some highlights of these efforts include completed agreements with Tommy Chong's Cannabis (See press release dated February 7th, 2020) and EasyRiders (See press release dated December 15th, 2020) to add to the company's brand suite
....as well as the launch of the Dreamy Delivery direct-to-consumer platform (see press release dated December 22nd, 2020 ) in San Francisco and Sacramento, and ongoing supply chain enhancements are in-review to improve operational efficiency and profit margins by controlling inputs and manufacturing.