Agoracom Blog

INTERVIEW: Hollister $ Signs $20M LOI To Acquire Venom With $16.4M Revenue & $2.48M EBITDA $ $CGC $ACB $APH $ $ $

Posted by AGORACOM-JC at 4:00 PM on Tuesday, February 25th, 2020

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.  


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.  

We loved what we heard and look forward to your feedback in Hollister’s CEO Verified Forum below!

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