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Be the first with the news that moves the market- Hollister Biosciences (CSE:HOLL) has completed its all-stock acquisition of Arizona-based Venom Extracts
- The company will issue a total of 70,390,672 common shares at C$0.20 each for the acquisition, valuing the transaction at around $20,000,000
- An additional 29,610,054 shares will be issued upon the completion of certain milestone achievements
- The acquisition of Venom Extracts also adds more than $16.4 million in 2019 revenue to Hollister’s financials
- Hollister Biosciences (HOLL) is currently down 18.18 per cent to 4.5 cents per share, with a market cap of $4.89 million
Hollister Biosciences (CSE:HOLL) has completed its all-stock acquisition of Arizona-based Venom Extracts.
The award-winning brand is one of the state’s largest producers of medical cannabis distillate products. Hollister, in today’s announcement, described the deal as a “transformational” and a “highly accretive acquisition.”
For the year ending December 31, 2019, Venom Extracts generated more than C$16.4 million in revenue from its line of cannabis concentrates and cartridges. The company also reported more than $2.5 million in EBITDA.
Venom’s senior management has said that the company is following the strong results with an above-average start to 2020, and fully expects a record first quarter.
Carl Saling, founder and CEO of Hollister Biosciences, said he was very pleased to have secured the deal.
“Our acquisition of Venom Extracts bolts on substantial revenue and EBITDA to Hollister, while providing Venom Extracts the ability to expand its offering of premium branded product into the California marketplace.
“Likewise, our acquisition also allows Hollister to introduce its products into the Arizona and Nevada marketplaces through Venom Extracts’ existing distribution channels,” he added.
Under the terms of the agreement, Hollister will issue a total of 70,390,672 common shares to the vendors of Venom Extracts. The shares will be issued at a deemed value of $0.20 each, valuing the transaction at around $20,000,000.
An additional 29,610,054 shares will be issued to key personnel associated with Venom upon the completion of certain revenue milestones.
Jacob Cohen, founder of Venom Extracts, shared Saling’s excitement in entering a new phase of operations.
“This transaction represents the next step in ensuring the future growth of both Hollister and Venom Extracts.
“We are looking forward to increasing our geographic presence by expanding into the California marketplace through Hollister’s existing platform, and exploring expansion of our existing product portfolio collectively,” he said.
The acquisition will not include the assumption of any long-term debt. It was also noted that a new control position at Venom Extracts will be created, with no change in the management of either company.
Hollister Biosciences (HOLL) is currently down 18.18 per cent to 4.5 cents per share at 10:18am EST.
