Mr. Carl Saling reports

HOLLISTER BIOSCIENCES 100% OWNED SUBSIDIARY VENOM EXTRACTS ACHIEVES FINAL $40 MILLION REVENUE MILESTONE

Further to its news release dated March 30, 2020, Hollister Biosciences Inc.'s 100-per-cent-owned subsidiary, Venom Extracts, has achieved its second of two revenue milestones in accordance with the terms of the definitive agreement that was entered in connection with the acquisition of Venom by the company.

On Dec. 9, 2020, Venom achieved the second and final revenue milestone by generating in excess of $40-million of revenue calculated from Jan. 1, 2020. Hollister also reports that Venom generated $4.8-million in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) over the same period. As a result, the company will issue 9,870,018 common shares to certain former Venom shareholders at a deemed price of 20 cents per earn-out share. The earn-out shares will not be subject to any hold period under applicable securities laws.

On Nov. 4, Arizona passed Prop 207 authorizing the adult use of cannabis. Arizona is a mature, limited-licence medical market with 123 operational dispensaries as of Oct. 31, 2020, and 287,715 patients reported as of September, 2020. "The victory also puts Arizona on pace to create one of the biggest new marijuana markets in the country. The Arizona recreational market could generate as much as $375-million (U.S.) to $400-million (U.S.) in its first year and $700-million (U.S.) to $760-million (U.S.) by 2024, according to projections by Marijuana Business Daily."

Venom Extracts is a leading concentrate brand in Arizona, accounting for between 25 to 30 per cent of category sales. Venom has eight SKUs with varying product forms, including shatter, crystals, nectar sauce, sugar wax, live resin, diamond sauce, tetrahydrocannabinolic acid and vape cartridges. Venom products can be found in over 80 retail locations, including Arizona's market leader -- Harvest Health and Recreation, leading multistate cannabis operator Curaleaf, MUV by Atlmed and other leading dispensaries.

"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, chief executive officer of Hollister.

About Hollister Biosciences Inc.

Hollister Biosciences is a multistate cannabis company with a vision to be the sought-after premium brand portfolio of innovative, high-quality cannabis and hemp products. Hollister uses a high-margin model, controlling the whole process from manufacture to sales to distribution or seed to shelf.

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