Hollister Biosciences, Inc., the creator of California's #1 hash-infused pre-roll HashBone, enters into Letter of Intent to acquire Alphamind Brands, a company developing exciting product SKU's in the legal medicinal mushroom market and conducting R&D for pharmaceutical applications for psilocybin
VANCOUVER, March 11, 2020 /PRNewswire/ - Hollister Biosciences Inc. (CSE: HOLL, FRANKFURT: HOB, OTC: HSTRF) (the "Company" or "Hollister") – a diversified cannabis branding company with products in 220 dispensaries throughout California, is pleased to announce that the Company has entered into a letter of intent (the "LOI") on March 9th, 2020 to acquire Alphamind Brands ( "Alphamind"), a company developing legal mushroom based natural health products and conducting R&D in conjunction with accredited universities to develop psilocybin based compounds for drug development.
The all stock purchase price is anticipated to be CDN$ 1,200,000 with such payment to be made in Hollister common stock. The stock price will be determined based on the greater of the 14-day VWAP (Volume Weighted Average Price) subsequent to announcing the transaction and $0.20. The acquisition is subject to normal course due diligence.
"We are very pleased to have entered into an LOI to complete this very exciting acquisition", shared Carl Saling, Founder and CEO of Hollister Biosciences Inc. "It is a fundamental value of our company to improve the overall health and performance of our customers through our high-quality products and the health benefits associated with medicinal mushrooms are tremendous. Not to mention, it is our continual objective to broaden our product scope and Alphamind, with its experienced management team, is a perfect foothold for us in the fast-growing market for medicinal mushrooms and complements our existing cannabis and hemp-based product offering."
"I think we have found a great partner in Hollister", shared Robert Birmingham, CEO of Alphamind Brands. "We have medicinal mushroom based product SKU's ready to ship and R&D is underway to develop an exciting IP portfolio surrounding psilocybin based pharmaceutical treatments. Being under the Hollister umbrella will allow us to access additional markets and leverage their existing manufacturing and distribution infrastructure and will be a fundamental part of the future growth of our business."
In association with the arm's length transaction, Hollister will not be assuming any long-term debt and there is no change in Management, or the Board of Directors of Hollister being contemplated at this time.
About Hollister Biosciences Inc.
Hollister Biosciences Inc. is a diversified cannabis company with multiple, high-quality products now carried in 220 of Indus Holdings (CSE: INDS), Hollister's exclusive distribution partner's 600 dispensaries. This level of penetration is expected to grow as the Company accelerates its seed to shelf, high margin business and product development model.
Capitalizing on this success, Hollister's vision is to become the sought-after premium brand portfolio of innovative, high quality cannabis across multiple states and hemp products nationwide.
Our wholly owned California subsidiary, Hollister Cannabis Co, is the 1st state and locally licensed Cannabis Company in the City of Hollister, California, the birthplace of the "American Biker" from which we embrace the outlaw roots of Hollister to drive our Company fearlessly down the road of success.
Products from Hollister Cannabis Co. include HashBone, the brand's premier artisanal hash-infused pre-roll ranked as California's #1 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.
About Alphamind Brands
Alphamind Brands is a Canada and US based growth stage company developing a portfolio of legal mushroom based natural health products as well as conducting R&D initiatives, led by Dr. Nikos Apostolopoulos, to explore psilocybin based pharmaceutical treatments. The company's "ready to ship" product SKU's include cordyceps, lion's mane, chaga and reishi mushroom based: liquid cordyceps, concentrated mushroom powder, tea, chocolate. The company's product SKU's under development include syrups, elixirs, cold beverages and nasal spray.
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
SOURCE Hollister Biosciences Inc.