Slide 1: Vext
Vext (CSE: VEXT and OTCQX: VEXTF) A growing, profitable cannabis company with operations in Arizona and Ohio All references to currency in this Presentation are in U.S. Dollars.
Slide 2: Forward Looking Statements
Forward Looking Statements This Presentation contains forward-looking statements that relate medical and recreational cannabis services with license holders, known and unknown risks, uncertainties, assumptions and other to the Company’s current expectations and views of future events and any comment
Slide 3: Profitable Growth from the Southwest
Profitable Growth from the Southwest Established footprint in Arizona – Transitioned to adult-use in early 2021 Recent announcement to double footprint by acquiring established vertical operations in Ohio – includes a second operating retail storefront, cultivation and manufacturing facilities – exp
Slide 4: Vext's Current Footprint
Vext’s Current Footprint CALIFORNIA – JOINT OPERATION (50%) OHIO 1 • Fully built-out mfg. facility • Cultivation: An operating Tier I cultivation facility of up to 25,000 square feet with the potential to expand • Wholesale – Vapen products in market up to 50,000 square feet • Manufacturing: An oper
Slide 5: Vertically Integrated Footprint in Arizona Market
Vertically Integrated Footprint in Arizona Market CURRENT FOOTPRINT STRONG FINANCIAL PERFORMANCE 1 Q1 2023 51% Arizona – Fully Vertically Integrated $9.1M Adj. Gross Revenue Margin3 41,000 2.9 32% Two Operated Fully built-out Dispensaries SQ. FT manufacturing $ M of indoor facility Adj. EBITDA Adj.
Slide 6: Established Retail Distribution
Established Retail Distribution CENTRAL PHOENIX NORTH PHOENIX 4126 W Indian School Road, Phoenix, Arizona 1720 E Deer Valley Road, Phoenix, Arizona Open since Located in the high Includes 3,000 sq. ft. customer Grand opening on July Located near high 95 parking spots August 2013 traffic industrial c
Slide 7: One of Arizona's Top Brand Portfolios
One of Arizona’s Top Brand Portfolios Full range of products across formats and price points • Available across dispensary shelves in the state • Broad Arizona distribution enables Vext to WYNK/MAJOR • Full suite of products – Flower, Concentrates, Extracts, Edibles, partner with brands that want to
Slide 8: Targeted Expansion in Cultivation Footprint to Meet Owned Dispensary Needs
Targeted Expansion in Cultivation Footprint to Meet Owned Dispensary Needs CULTIVATION Current Canopy Available Future Timing Expansion Phoenix 13,000 sf ̶ Q4 2021 Prescott Valley 11,000 sf ̶ Q1 2022 ̶ Eloy (Phase I) 17,000 sf Q1 2023 Eloy (Phase II) ̶ ~17,000 sf As needed Total indoor cultivation 4
Slide 9: Proposed Acquisition to Create Wholly-Owned Vertically Integrated Footprint in Ohio
Proposed Acquisition to Create Wholly-Owned Vertically Integrated Footprint in Ohio Ohio’s cannabis sales surpassed the $1 billion mark in 2022 and saw a 44% increase in number of patients over the past 12 months2, with the potential for a future transition into an adult- use market. 1) Vext has ent
Slide 10: Established Retail Distribution, Cultivation and Brand Footprint in Ohio
Established Retail Distribution, Cultivation and Brand Footprint in Ohio 1 RETAIL CULTIVATION & MANUFACTURING Attractive rural location with Controlling cultivation licenses is dispersed competitor base and a path to rapid profitability in the comparatively better margins limited license Ohio market
Slide 11: Terms - Proposed Acquisition of Ohio Operator
Terms - Proposed Acquisition of Ohio Operator Acquisition of Appalachian Pharm Processing, LLC • In December 2022, Vext entered into a definitive agreement to acquire Continued Appalachian Pharm Processing, LLC, together with its subsidiaries and translation of affiliated companies, (collectively, “
Slide 12: Clear Path to Further Growth in Arizona and Ohio
Clear Path to Further Growth in Arizona and Ohio ARIZONA OHIO Wholesale & Retail • Expanding the footprints of current • On closing the proposed acquisition, dispensaries aligned with new rules Vext will gain ownership of a second dispensary in Columbus • Continued opportunity to partner with out- S
Slide 13: Building a Consolidation Partner of Choice in Limited License States
Building a Consolidation Partner of Choice in Limited License States Limited license, fragmented markets leave small operators without a scalable path forward Entrepreneurs Vext Provides Have difficulty scaling due to a Growing scale and access to capital capped number of licenses and lack of access
Slide 14: Proven Ability to Generate Profitability
Proven Ability to Generate Profitability1 TOTAL REVENUE (USD) ADJUSTED EBITDA (USD) $37.2M $35.4M $13.4M $15.1M 2021 2022 2023 2021 2022 2023 Q1 Q1 2023 2023 $9.1M $2.9 M $10.8 M $8.8 M $4.8 M $9.4M $9.4M $9.3M $3.8 M $9.2M $8.2M $3.5M $3.5M $3.3M $3.4M$3.2M $7.7M $3.1M 2021 2022 2021 2022 FY Q1 Q2
Slide 15: Continued Focus on Profitability
Continued Focus on Profitability1 EBITDA (USD) $15.1M 2021 2022 2023 Vext has operated profitably since 2016 $10.3M and is one of the few Q1 2023 operators within the industry to have $1.6 M $5.6 M reported consistent $4.1 M positive EBITDA. $2.8M $2.9M $2.7M $2.5 M $2.2M $2.4M 2021 2022 FY Q1 Q2 Q3
Slide 16: Best-in-Class Free Cash Flow Generation
Best-in-Class Free Cash Flow Generation As of December 31, 2022 Free Cash Flow – 2023 Considerations Cash Flow from Operations (CFO) – F2022 Arizona $5.9M • All planned growth capex complete • Room for low-cost expansion within existing footprint as needed Total Fully Funded Growth & Maintenance Cap
Slide 17: Share Structure
Share Structure As at May 25, 2023 Subordinated Voting Shares 82,485,279 43.44% Multiple voting shares post conversion 67,274,700 35.43% Warrants (wtd. Avg. exercise price of $0.76) 33,538,337 18.19% Options (wtd. Avg. exercise price of $0.89) 5,201,334 2.74% Restricted Stock Units 369,658 0.19% Tot
Slide 18: Proven Leadership
Proven Leadership Management Team ERIC OFFENBERGER THAI NGUYEN STEPHAN BANKOSZ Chief Executive Officer/COO Executive Chairman/Founder Interim Chief Financial Officer & Corporate Secretary Eric Offenberger has been involved in the cannabis sector since Thai Nguyen is the Executive Chairman and Founde
Slide 19: Proven Leadership
Proven Leadership Board of Directors Board of Advisors THAI NGUYEN | EXECUTIVE CHAIRMAN ERIC OFFENBERGER | CEO and COO DR. JEFF YARGER DAVID JOHNS Dr. Jeff Yarger brings extensive expertise in chemical and pharmaceutical research and development (R&D) to the Vext Prior to joining APP, David was the
Slide 20: Profitable Growth from the Southwest
Profitable Growth from the Southwest Established footprint in Arizona – Transitioned to adult-use in early 2021 Recent announcement to double footprint by acquiring established vertical operations in Ohio – includes a second operating retail storefront, cultivation and manufacturing facilities – exp
Slide 21: Appendix A: Non-IFRS Financial Measure
Appendix A: Non-IFRS Financial Measure Adjusted EBITDA The Company has provided certain non-IFRS related costs, if applicable. The Company defines financial measures including “Gross margin”, “Adjusted EBITDA margin” as Adjusted EBITDA “Adjusted Gross Margin”, “EBITDA”, “Adjusted divided by Revenue.
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