Venom Extracts, a subsidiary of Hollister Biosciences (HOLL.C), hit their second and final revenue milestone on December 9th, 2020, by pulling in CAD$40 million in revenue, starting from January 1, 2020, according to a press release.
The deal closed on March 30th of this year wherein Hollister incentivized its new acquisition with an potential issuance of an extra 870,018 common shares on top of the sale price if they met certain milestones. The terms of the original deal included 70% of the proposed $20 million to be paid upfront and 30% to be paid upon milestone achievements. They’ve also brought in $4.8 million in adjusted EBITDA over the same period. Now that they’ve met it, it’s time to for Venom shareholders to get paid.
“We are very proud of the Arizona team and their ability to achieve this final revenue milestone and market leadership position. We look forward to continuing the growth of our Arizona platform as it transitions to an adult use market.” shared Carl Saling, CEO of Hollister.
Venom Extracts is an Arizona-based concentrate brand. They have 8 sku’s presently that come in various forms including shatter, crystals, nectar sauce, sugar wax, live resin, diamond sauce, THC-A and Vape Cartridges. Products can be found spread out over Arizona in more than 80 retail locations, including Arizona’s market leaders: Harvest Health and Recreation (HARV.C) and MSO, Curaleaf (CURA.C).
This deal left Hollister in a favourable position to expand their operation to include the newly legal adult use market in Arizona, after the state passed Prop 207 authorizing the creation of said market. Prior to that, Arizona had been a mature, limited license medical market with 123 operational dispensaries, and 287,715 patients as of September 2020. The new market has been projected by Marijuana Business Daily to be able to produce as much as USD $375 million-400 million in its first year and between $700 million and $760 million by 2024.