Business
Vext Strengthens Balance Sheet and Sharpens Focus on Core Markets with Strategic Sale of Kentucky Medical Processing License
Vancouver, British Columbia--(Newsfile Corp. - April 4, 2025) - Vext Science, Inc. (CSE: VEXT) (OTCQX: VEXTF) ("Vext" or the "Company"), a U.S.-based cannabis operator with vertically integrated operations in Arizona and Ohio, today announced that Vapen Kentucky, LLC ("Vapen Kentucky"), a wholly owned subsidiary of Vext, together with its local partner, has entered into a definitive agreement (the "Sale Agreement") to sell a medical cannabis processing license in the state of Kentucky for ...
About this update from Vext Science, Inc.
[{"type":"text","content":"Vancouver, British Columbia--(Newsfile Corp. - April 4, 2025) - Vext Science, Inc. (CSE: VEXT) (OTCQX: VEXTF) ("Vext" or the "Company"), a U.S.-based cannabis operator with vertically integrated operations in Arizona and Ohio, today announced that Vapen Kentucky, LLC ("Vapen Kentucky"), a wholly owned subsidiary of Vext, together with its local partner, has entered into a definitive agreement (the "Sale Agreement") to sell a medical cannabis processing license in the state of Kentucky for gross proceeds to the Company of US$880,000 (the "Transaction").","length":608,"tagName":"p"},{"type":"text","content":""This transaction underscores our disciplined approach to capital allocation and strategic focus on maximising returns in our core markets," said Eric Offenberger, CEO of Vext. "By divesting the processing license in Kentucky, we are deepening our focus on our core operations in Arizona and Ohio, where we see the most compelling opportunities to drive long-term value. The proceeds of the sale strengthens our balance sheet and will support the build out of our Ohio retail footprint as we continue to prioritize profitability and cash flow growth across our vertically-integrated operations."","length":615,"tagName":"p"},{"type":"text","content":"On March 16, 2025, Vext acquired the remaining 50% membership interest in Vapen Kentucky from its joint venture partner, utilizing non-cash consideration. Upon closing of the Transaction, Vapen Kentucky's operations will be restructured to focus exclusively on hemp-related business opportunities.","length":301,"tagName":"p"},{"type":"text","content":"Terms of the Transaction","length":24,"tagName":"p"},{"type":"text","content":"Vapen Kentucky will receive US$880,000 in cash as consideration for the sale of the medical cannabis processing license, which amount is payable at closing of the Transaction. Proceeds from the Transaction are expected to be used for (i) the repayment of a portion of Vext's currently outstanding credit facilities, (ii) build out of the Company's Ohio retail footprint and (iii) general corporate purposes.","length":415,"tagName":"p"},{"type":"text","content":"The Transaction remains subject to customary closing conditions, including regulatory approval by the state of Kentucky. Vext ex...