VANCOUVER, Dec. 10, 2019 /CNW/ - Hollister Biosciences Inc. (CSE: HOLL, FRANKFURT: HOB) (the "Company", "Hollister Cannabis Co." or "Hollister"), a California based cannabis branding company with a vision to be the sought-after premium brand portfolio of innovative, high quality Californian-grown cannabis & hemp products, commenced trading on the Canadian Securities Exchange ("CSE") on November 25th, 2019 under the symbol HOLL.
To help our new and existing investors better understand existing operations and future objectives, Hollister CEO, Carl Saling, is pleased to provide the following corporate updates.
Description of the Business
Hollister currently manufactures hash, tinctures, hash infused products, crumble infused products, pre-roll, and other cannabis products under several proprietary brands and as white label products. The Company intends to be an integrated company operating across the entire cannabis value chain, cultivating, manufacturing and producing cannabis and cannabis products. Further, the Company intends to move into the hemp market.
Hollister operates a 37,061 square feet indoor cannabis facility (the "Facility") located in Hollister California, that meets all security requirements under applicable laws. Hollister currently operates in 2,061 square feet of the Facility and uses this space to conduct its cannabis handling activities.
The Company intends to build-out the remaining portion (35,000 square feet) of the Facility to allow for additional processing, manufacturing and packaging projects, including Hollister's nano-emulsified cannabis concentrate to be used in sublingual sprays, beverages, edibles and capsules.
Products and Services
The Company plans to use the Facility for the production and downstream processing of cannabis products using plant materials purchased from the licensed marketplace. Some products will be unprocessed (e.g. dried flowers), while others will be processed (e.g. oil derived from the cannabis leaves). The Company expects to offer products in the medicinal and recreational spaces, which may include products in the categories of, prepackaged flower, pre-roll, infused pre-roll, bubble hash, tinctures, beverages, edibles and pet products.
Manufacturing and Packaging Process
Hollister products are packaged, labeled and prepared for distribution prior to leaving the Facility. The Company uses state of the art equipment to fill vape cartridges, capsules, tincture bottles and other products and to efficiently package and label its products.
Part of the cannabis licensing process in the state of California requires license applicants to submit their SOPs. Hollister has developed extensive SOPs for every facet of the business in order to meet appropriate license requirements.
Hollister has an exclusive distribution agreement in place with Indus Holdings ("Indus", CSE: INDS, OTC: INDXF). Indus is the licensed California distributor that operates the WAYV platform. Indus currently manages all of Hollister's product fulfilment obligations, allowing Hollister to focus its efforts on production and marketing. Indus provides Hollister with full brand representation by utilizing its 14 sales reps to represent Hollister's product to the California marketplace. Through its agreement with Indus, Hollister's products are now present in 170 dispensaries throughout the state of California.
Marketing and Brand Strategies
To establish the optimal marketing and brand strategies, Hollister conducted market analyses with respect to market size and growth, competitor analysis, customer segments and product trends in the cannabis space. Hollister has established the brand strategies summarized below for its five consumer packaged cannabis goods brands. Hollister has secured domain names for certain products and trademarks, where possible.
Hashbones are a pre-roll made from 75% cannabis flower blended in small batches with 25% bubble hash. This results in a more potent pre-roll. It also maintains the integrity of the cannabis. Terpenes are preserved in the bubble hash production process. Bubble hash is made without solvents or chemicals and is one of the cleanest concentrates available on the market.
Hollister acquired Mighty Meds as its vape brand. The Company's vape products are manufactured from pure THC distillate and plant-based terpenes and do not use any additives that have been linked to health issues.
Purity Petibles 20:1 CBD pet tincture is manufactured using full spectrum CBD, organic MCT Oil derived from coconuts and chicken flavor. The MCT Oil and chicken flavor used in Purity Petibles is food grade.
NanoPure, nano-emulsified cannabis concentrate which will be sold both wholesale as an ingredient for other companies and power products for Hollister Cannabis Co. NanoPure is currently manufactured using sonic technology to shear the THC/CBD molecule into smaller sizes that are encapsulated in a nano-emulsion.
The Company manufactures pre-rolls, infused pre-rolls and packages flower into 3.5 gram and 1 gram packages as "white label" products for other licensed California cannabis companies. Those companies then distribute their own products.
The Company will continue to evaluate the changing cannabis regulatory landscape within California to expand operations in opportune locations.
The Company will also evaluate new technologies which may be utilized in the Company's Facilities in the future.
Hollister is currently in the design phase of expanding its Facility.
Expansion into New Markets
Hollister plans on entering the hemp industry by initially contracting with a manufacturing partner that currently operates in this sector.
After which, Hollister intends to seek investment targets with hemp manufacturing operations.
Initially the strategy will be direct to consumer with an ecommerce website that is in the planning stages.
About Hollister Biosciences Inc.
Hollister Biosciences Inc. is a California based vertically integrated cannabis company with a vision to be the sought-after premium brand portfolio of innovative, high-quality California-grown cannabis & hemp products. Hollister uses a vertically integrated, high margin model, controlling the whole process from manufacture to sales to distribution or seed to shelf. Products from Hollister Cannabis Co. include HashBone, the brand's premier artisanal hash-infused pre-roll, along with solvent-free bubble hash, pre-packaged flower, pre-rolls, tinctures, vape products, and full-spectrum high CBD pet tinctures. Hollister Cannabis Co. additionally offers white-labeling manufacturing of cannabis products.
Our wholly owned California subsidiary Hollister Cannabis Co is the 1st state and locally licensed cannabis company in the city of Hollister, CA birthplace of the "American Biker".
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information: This news release includes certain statements that may be deemed "forward-looking statements". The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "would", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this News Release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com