Hollister Biosciences Inc. Reports Second Quarter 2020 Results

Rhea-AI Summary

Hollister Biosciences Inc. (OTC: HSTRF) announced record revenues of $8.47 million for Q2 2020, up from $0.2 million year-over-year, demonstrating significant growth. Net income reached $0.3 million, a turnaround from a $2.1 million loss in Q1 2020. Revenue stemmed from concentrates, pre-rolls, and contract manufacturing. The company is launching a direct-to-consumer delivery service named 'Dreamy Delivery' by Q4 2020. Hollister remains focused on increasing brand awareness through M&A and partnerships, including collaboration with Tommy Chong's Cannabis.

Positive

• Record revenue of $8.47 million for Q2 2020, a significant increase from $0.2 million in Q2 2019.
• Net income of $0.3 million compared to a net loss of $2.1 million in Q1 2020.
• Launch of 'Dreamy Delivery' service expected by Q4 2020, expanding market reach.
• Strong growth in product distribution, including Tommy Chong's Full Spectrum Elixir in 20 dispensaries.

Negative

• None.

Multi-state operator and diversified cannabis branding company generates record quarterly revenue and delivers profitable second quarter

VANCOUVER, BC, Aug. 24, 2020 /PRNewswire/ - Hollister Biosciences Inc. (CSE: HOLL), (OTC: HSTRF), (FRANKFURT: HOB) (the "Company", "Hollister Cannabis Co." or "Hollister") a diversified cannabis branding company with products in over 230 dispensaries throughout California, and over 80 dispensaries throughout Arizona, announces financial results for the second quarter 2020 (ended June 30^th, 2020).  All figures in US Dollars unless otherwise stated.

Second Quarter Financial Highlights

• Revenue generated for the three-month period ended June 30^th, 2020 was $8.47 million versus $0.2 million from the second quarter last year, representing significant year over year revenue growth
• Revenue was primarily generated from the sale of concentrates, pre-rolls and contract manufacturing services
• Net income for the three-month period ended June 30^th, 2020 was $0.3 million compared to a net loss of $2.1 million in the first quarter of 2020

"Our second quarter results are encouraging and in line with our objective to increase revenue and profitability" shared Alex Somjen, President of Hollister Biosciences Inc.  "These financial results are a product of increased brand awareness, strategic M&A and strategic partnerships put in place over the previous six months."

Operational Highlights and Strategic Objectives for 2020

• The challenges presented by the COVID-19 pandemic have accelerated Hollister's plans to roll out direct to consumer delivery
• The brand will be called "Dreamy Delivery" and the first delivery hub is expected to launch in the fourth quarter of 2020 with statewide delivery anticipated by the end of 2021
• Design and build-out of Hollister's 100% owned subsidiary, Venom Extracts, in the Company's Hollister, CA facility are underway
• Product development and product launch associated with the Company's joint venture with Tactical Relief and the Company's 100% owned subsidiary, Alpha Mind Brands Inc., respectively, are progressing
• The Company's partnership with Tommy Chong's Cannabis is progressing well, with Tommy Chong's Full Spectrum Elixir now being distributed in 20 dispensaries throughout the state of California by Hollister's distribution partner Indus Holdings Inc. (CSE: INDS)

"Enormously proud of our teams in Arizona & California.  Our staff continues to overcome obstacles like the global pandemic while posting record revenue numbers. We look forward to continuing to execute on our plans while increasing value for our shareholders." Said Carl Saling CEO of Hollister Biosciences.

About Hollister Biosciences Inc.

Hollister Biosciences Inc. is a multi-state cannabis company with a vision to be the sought-after premium brand portfolio of innovative, high-quality cannabis & hemp products. Hollister uses a high margin model, controlling the whole process from manufacture to sales to distribution or seed to shelf. 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. Hollister Cannabis Co. additionally offers white-labeling manufacturing of cannabis products.  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.hollistercannabisco.com

The CSE, nor its regulation services provider, does not accept responsibility for the adequacy or accuracy of this release.

Forward-Looking Information: This news release includes certain statements that may be deemed "forward-looking statements". The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "would", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this News Release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com

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SOURCE Hollister Biosciences Inc.

FAQ

What were Hollister Biosciences' Q2 2020 revenue figures?

Hollister Biosciences reported Q2 2020 revenues of $8.47 million, significantly up from $0.2 million in Q2 2019.

How much net income did Hollister Biosciences generate in Q2 2020?

Hollister Biosciences posted a net income of $0.3 million for the three-month period ended June 30, 2020.

What strategic initiatives are being pursued by Hollister Biosciences in 2020?

Hollister is launching a direct-to-consumer delivery service called 'Dreamy Delivery' and pursuing strategic M&A and partnerships.

How is Hollister Biosciences performing amid the COVID-19 pandemic?

Hollister Biosciences reported record revenues during the pandemic, highlighting their adaptability and growth strategy.

What is the partnership status with Tommy Chong's Cannabis?

Hollister's partnership with Tommy Chong's Cannabis is progressing well, distributing Chong's Full Spectrum Elixir in California.