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Hollister Biosciences To Purchase Venom Extracts For CA$20M

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Hollister Biosciences To Purchase Venom Extracts For CA$20M

Vertically integrated cannabis branding company Hollister Biosciences Inc. (OTC: HSTRF)(CSE:HOLL) said Tuesday it has signed a letter of intent to purchase Venom Extracts, a manufacturer of medical cannabis distillate and related products.

The purchase price is projected around CA$20 million, of which 70% should be paid upfront and the rest once several milestones are reached, the company said.

Venom Extracts reported non-audited financial results for the prior year, with revenue of CA$16.4 million and EBITDA of CA$2.48 million from its product line of Cannabis Concentrates, P.H.O Concentrates and Cartridges.

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"Venom has established itself as a leading extraction operation with a prominent brand in the Arizona marketplace", Carl Saling, founder and CEO of Hollister Biosciences said in a statement. "We feel this acquisition will present a great deal of opportunity for synergy between Hollister and Venom, providing avenues for both companies into the Arizona, California and additional marketplaces for cannabis products. Venom Extracts has a highly skilled and experienced management team with a track record for operational excellence. This transaction is highly accretive and represents a fundamental part of the future growth of both companies."

Mason Cave, CEO of Venom Extracts also commented on the transaction.

"We are very pleased to be entering into this transaction with Hollister," he said. "The opportunities for resource and capability sharing between the two companies are plentiful. This also represents a more expeditious avenue for us into the large and rapidly growing California marketplace.”

 

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