Hollister Signs $20M LOI To Acquire Venom With $16.4M Revenue & $2.48M EBITDA

At a time when Cannabis stocks are struggling and in a massive  state of flux, due to an inability to actually deliver real businesses,  Hollister Biosciences (HOLL:CSE) has been quietly building a real  business, products, revenue and customers in 220 of California's 600  dispensaries .... and growing, including California's #1 hash infused  pre-roll "Hashbone".

In addition to that, Hollister has also signed LOI's, JV's and  licensing deals with major partners with massive nationwide and even  global audiences launching in the next couple of months.  We'll save  details of those for another day but suffice it to say one of those  partners is the world renowned Tommy Chong (of Cheech & Chong) who  stated:

""I only partner with the best-in-class companies and I am  really pleased to have the Hollister Cannabis Co. bring their amazing  Tommy Chong's Cannabis™ Full Spectrum Elixir to the market for me".

If that was all Hollister had going, they'd be in great shape with a  super bright future and better than most Cannabis companies (small and  large) who can't even get product out the door.

BUT THERE'S MORE - THE $20,000,000 ACQUISITION THAT COMES WITH $CDN 16.4M REVENUE & $CDN 2.48M EBITDA

Earlier today, Hollister announced an LOI to acquire Venom  Extracts, one of Arizona's largest producers of Award-Winning Medical  Cannabis Distillate. Just how good is Venom? In 2019, Venom generated  $CDN 16.4M in revenue and $CDN 2.48M EBITDA in 2019 (subject to due  diligence confirmation) ... and all of that was just from the state of  Arizona! Venom CEO Mason Cave and his team have aggressive plans to  expand its brand and success into other states, including California as  it benefits from Hollister's distribution into 220 dispensaries.

If you think "growth talk is cheap" (which is often the case),  consider the fact that 30% of Venom's $20,000,000 sale price kicks in  if/when revenues hit $CDN 30,000 and $CDN 40,000 .... by December 31,  2021.  In my experience, companies joining forces don't include such  terms if there isn't a reasonable expectation for hitting those  numbers.  It doesn't guarantee it but you can bet they have good reason  to believe Venom sales will get to one or both of those numbers in just  21 months from now.

If you're looking for Cannabis companies that are going to survive  and thrive over this next decade, then grab your favourite beverage and  watch this interview with Hollinger President, Alex Somjen.