- Hollister Biosciences Also Provided a Corporate Update on the Company’s Business Operations During the Coronavirus Pandemic
- Thanks to Cannabis Being Deemed Essential in the States Hollister Operates In, the Company Has Remained Operational Throughout the Crisis
- COVID-19 Has Drastically Changed the Way Consumers Purchase Goods, Here’s How Hollister Plans to Capitalize on the Potentially Permanent Consumer Behaviour Changes
Hollister Biosciences (CSE: HOLL) (OTC: HSTRF) (FRA: HOB) released a new comprehensive corporate update on Wednesday in which the company’s CEO Carl Saling updated investors on the following:
- Operations During COVID-19 Pandemic
- Alliance with Tommy Chong
- Transformational Venom Extracts Merger
- Acquisition of Psychedelics Firm AlphaMind
- Hollister Cannabis Co.
- Plan to Capitalize on Consumer Behaviour Changes
“As the country begins to emerge from stay at home orders, we thought it would be prudent to provide our shareholders with an update on our operations and some additional details on our recently announced acquisitions, AlphaMind and Venom Extracts. Integration of the new companies is well underway and continues to run smoothly,” stated Hollister CEO Carl Saling.
Many states across the country have declared cannabis businesses as essential. As a result, Hollister reported that it has been able to stay operational in all the states in which it operates.
Hollister joined the fight against COVID-19 and took action to help the communities that it operates in by manufacturing hand sanitizer and donated it to offices and front-line workers. As recognition for stepping up in a time of need, the county of Hollister, California, awarded Hollister Cannabis Co. with a Certificate of Appreciation.
Hollister’s facilities are currently operating under social distancing guidelines, with employee safety as the top priority. The company continues to ensure that its employees are working in a safe and healthy environment and has provided them with all the tools needed to keep themselves and their families safe. Hollister has even given its employees gloves, masks and hand sanitizer to take home.
Further to the deal reported on February 7, 2020, Hollister disclosed that its strategic business relationship with Tommy Chong is progressing well. Hollister stated it’s very close to launching the 1st SKU under the Tommy Chong deal, which will be Tommy Chong’s Cannabis Full Spectrum Elixir comprising of a 1:1 ratio of 500mg CBD and 500mg THC. The new product has completed testing, and labels are currently being produced with the product expected to launch before the end of May 2020.
Hollister continues to integrate the recently acquired Venom Extracts into the company’s operations and says the synergies are evident. Plans are already underway for the expansion of Venom into Hollister’s manufacturing facility in California, with engineering and permitting processes underway. Hollister expects Venom will be producing products in California in the fourth quarter of 2020.
Venom Extracts is an Arizona-based ultra-premium cannabis extract brand and large scale producer of award-winning medical cannabis distillate. Last year, Venom Extracts generated EBITDA of $2.5 million on revenue of $16.4 million, and throughout the pandemic, Venom products continued to see significant growth in demand resulting in record Q1 2020 revenue.
Hollister recently made headlines when the company announced it had diversified its operations to include Psychedelics by acquiring AlphaMind Brands. Hollister reported that the integration process is underway, and the company believes AlphaMind’s medicinal mushroom-based products will be complementary to Hollister’s existing cannabis product line.
AlphaMind has a deal in place with an established U.S. manufacturing partner, and Hollister plans to build an e-commerce platform to market and distribute AlphaMind’s product line. AlphaMind, which operates in the U.S. and Canada, is also focused on its ongoing R&D initiatives, which include developing IP for Psilocybin based pharmaceutical treatments.
HashBone is the name of Hollister’s bubble hash infused pre-roll brand, which the company reported continues to grow and gain new fans daily. The HashBones brand is extremely popular and is rated one of the top five hash-infused pre-rolls in the state of California. Hollister announced it is now offering HashBone ‘Minis’ which are 0.5-gram bubble hash infused pre-rolls packaged in a five-pack. The company’s new Hybrid and Sativa HashBone ‘Minis’ are now available in select California dispensaries.
Hollister will also be introducing its new HashBone ‘Wolfie,’ which the company created for the true cannabis connoisseur. The HashBone Wolfie is a traditional HashBone coated with full-spectrum cannabis oil and rolled in bubble hash. The HashBone Wolfie is currently in the testing phase and is expected to be available for purchase before the end of May 2020.
Throughout the Coronavirus pandemic, Hollister’s management team has been assessing consumer behaviour changes, which it believes could be permanent. Hollister intends to capitalize on these consumer behaviour changes in the following ways:
- Hollister plans to accelerate its direct to consumer platform for both the hemp and the cannabis markets.
- The company will look to build a centralized e-commerce management system that will streamline sales and marketing of all Hollister’s non-cannabis brands like Rebel Hemp Company & AlphaMind.
- Hollister will continue to evaluate the changing cannabis regulatory landscape to expand operations into new states.
- The company will also evaluate new technologies that may be utilized in new future facilities.
- Hollister Cannabis Co. is currently in the design phase of expanding its facility to accommodate the Venom Extracts brand.
HOLL Stock Price Action & Chart
Shares of Hollister Biosciences’ CSE listed ‘HOLL’ stock closed today’s trading session at $0.115, down 4.17%. The company’s American OTC Markets listed ‘HSTRF’ stock closed the day up 7.53% at $0.09 per share. Overseas in Germany, Hollister’s Frankfurt listed ‘HOB’ shares closed at $0.062, down 15.07%.
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