Hollister Biosciences Inc. (CSE: HOLL), (OTC: HSTRF) reported that its revenue for the second quarter ending June 30th, 2020 was $8.47 million versus $0.2 million for the same time period last year. the company attributed the revenue growth to the sale of concentrates, pre-rolls, and contract manufacturing services. The company also delivered net income for $0.3 million compared to a net loss of $2.1 million in the first quarter of 2020.
“Our second-quarter results are encouraging and in line with our objective to increase revenue and profitability” shared Alex Somjen, President of Hollister Biosciences Inc. “These financial results are a product of increased brand awareness, strategic M&A, and strategic partnerships put in place over the previous six months.”
The bulk of the company’s revenue comes from Arizona’s total revenue over the last six months of $8.7 million. The state is also turning in positive results with net income for the last six months of $709,239. California generated revenue of $651,862 for the last six months but had a net loss of $856,087.
Hollister Cannabis Company manufactures hash, tinctures, hash infused products, crumble infused products, pre-rolls, and other cannabis products under their brands HashBones, Purity Petibles, Hollister Cannabis Co., and as contract manufacturing white label products for other companies. The company acquired Venom Extracts in March and is including 100% of the revenues and expenses of Venom Extracts for the three and six months ended June 30, 2020, which equated to $8,102,862 and $8,773,238 of gross revenues, respectively, being generated by Venom Extracts.
The company said in its MD&A that its most widely distributed product manufactured is the HashBone which is a 25% hash 75% flower pre-roll which is made in small batches with only premium flower and artisanal bubble hash. Hollister Cannabis Company Bubble Hash is made with purified water and ice in hash wash machines. The company said it is dried in state of the art freeze dryers and strained and grammed in concentrate jars. “There are several white label products manufactured at Hollister Cannabis Co including crumble infused pre-rolls, 1/8th and grammed flower, and pre-rolls. The company uses an automated process that fills vape cartridges, capsules, tincture bottles, and more. There are potential white label projects for this equipment. Most products are packaged, labeled, and prepared for distribution prior to leaving Hollister Cannabis Company.”
The company said its partnership with Tommy Chong’s Cannabis is progressing well, with Tommy Chong’s Full Spectrum Elixir now being distributed in 20 dispensaries throughout the state of California by Hollister’s distribution partner Indus Holdings Inc. (CSE: INDS).
“Enormously proud of our teams in Arizona & California. Our staff continues to overcome obstacles like global pandemic while posting record revenue numbers. We look forward to continuing to execute on our plans while increasing value for our shareholders.” Said Carl Saling CEO of Hollister Biosciences.