Hollister Biosciences Reports 300% YoY Increase In Cash Balance As Stock Plunges After Q3 Earnings

Hollister Biosciences Inc. HOLL HSTRF HOB announced its financial results Monday for the third quarter of fiscal 2021 ended Sept. 30.

The Vancouver-based company maintained a strong liquidity position over the period, including a cash and cash equivalents balance of $7.6 million, a 300% increase from the prior-year quarter.

CEO Jake Cohen said the company's performance is mainly attributable to the organic growth of its core business, Venom Extracts.

"As we approach the end of our final quarter and the beginning of a period of transformation, our strengthened and experienced leadership team is laser-focused on creating shareholder value, delivering sustainable profitable growth, keeping operating costs low, and scaling the Company for optimal global success."

Eula Adams, the company's CFO, continued, "Hollister's third-quarter results demonstrate the strength of our business and commitment to executing against our strategy. With its strong balance sheet, we believe the company is well-positioned and prepared for growth as it continues on its strategic transformation."

Q3 2021 Financial Highlights

  • Total revenue was $14.5 million, an increase of $5 million or 53% compared to the prior-year period.
  • Gross profit was $3.5 million compared to $1.4 million for the prior-year period.
  • Net income was $0.4 million versus a loss of $0.6 million in the prior-year period.
  • Adjusted EBITDA was $1.2 million compared to a loss of $0.6 million in the prior-year period.

Q3 2021 And Recent Business Highlights

In August, the company announced 'Hollister Brand Campus' a 30-Acre Arizona Brand Campus with a planned 700,000 square feet of cultivation area and an existing 28,500-square-foot processing and manufacturing facility.

Shortly after, Hollister announced two new board members, including Kevin Harrington, an original "Shark" from the NBC hit TV series "Shark Tank," and Jakob Ripshtein, the former CFO of Diageo North America and president of Aphria Inc.

In October, Hollister appointed Jacob Cohen as CEO, Eula Adams as a CFO, Chris Lund as chief commercial officer and Jill Karpe as senior VP of admin and finance to create shareholder value, enhance governance, operations and market positioning while preparing the company for the next phase of its growth.

In November, the company's shareholders elected Jakob Ripshtein, Jacob Cohen, Eula Adams, Lily Dash, Kevin Harrington and Brett Mecum to serve as Hollister's directors.

HSTRF Price Action

Hollister Biosciences' shares traded 10.36% lower at $0.1515 per share at the time of writing Tuesday late morning.

Photo: Courtesy of Chris Briggs on Unsplash

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Posted In: CannabisEarningsNewsPenny StocksMarketsEula AdamsJake CohenKevin Harringtonthird quarter earnings
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