- Q4-2020 revenue of $6.4 million, +80% vs. Q4-2019; Adjusted EBITDA of $2.4 million vs. ($0.8) million in prior year period.
- FY-2020 revenue of US$25.2 million, + 13% vs. FY-2019; Adjusted EBITDA of US$6.8 million, +40% vs. prior year period.
- Vext’s two managed Phoenix dispensaries are generating successive months of growth with the transition to adult-use in Arizona. March 2021 was a record month for both dispensaries.
VANCOUVER, BC, April 15, 2021 /CNW/ – Vext Science, Inc. (“Vext” or the “Company”) (OTCQX: VEXTF) (CSE: VEXT) a cannabinoid brand leader based in Arizona, leveraging its core expertise in extraction, manufacturing, cultivation and marketing to build a profitable multi-state footprint, today reported its financial results for the period ended December 31, 2020. All currency references used in this news release are in U.S. currency unless otherwise noted.
| (1) See “Non-IFRS Financial Measures” below for more information regarding VEXT’s use of Non-IFRS financial measures and other reconciliations |
Management Commentary
Eric Offenberger, CEO of Vext commented, “Vext exited 2020 on solid footing, with continued growth in revenue and Adjusted EBITDA, driven by the addition of another operated Phoenix dispensary during Q3, and organic growth in both our retail and wholesale operations in Arizona. The first quarter of 2021 brought the swift approval of rec-legal cannabis sales in the state, and revenue is growing steadily as a result, with both of our operated dispensaries and our wholesale operations producing record results in the month of March. As the Arizona recreational market continues to develop during 2021, we expect further growth in revenue and Adjusted EBITDA, and are well-positioned to execute on in-state opportunities as they arise, backed by our recent announcement of a significant expansion of our indoor cultivation capacity and a solid balance sheet.”
Mr. Offenberger continued, “during 2021, our primary focus is on continuing to generate profitable growth, principally driven by our operations in Arizona. During the year we also expect the investments we have made in other states to begin to generate noticeable returns for shareholders. Ohio is particularly exciting and with our Vapen brand already selling well, in the near-term we look forward to advancing the letter of intent we signed earlier this year into a formal agreement and beginning the planning process for a retail footprint in the state.”
Summary of Select Recent Developments
- On January 7, 2021, Vext announced that it had appointed an experienced Chief Financial Officer for its Arizona subsidiary, New Gen Holdings, Inc.
- On January 22, 2021, the Company announced that it had received approval to begin recreational cannabis sales in Arizona. The Company’s managed operations began selling to adult use customers on January 28, 2021.
- On February 9, 2021, Vext announced that it had closed an oversubscribed “bought deal” public offering for aggregate gross proceeds of approximately $20.7 million, and a concurrent private placement for gross proceeds of $1.6 million.
- On March 11, 2021, the Company announced that it had appointed Vahan Ajamian, an experienced cannabis and capital markets executive, as Chief Financial Officer.
- On March 15, 2021, Vext announced that it had signed a letter of intent that will enable it to establish a retail presence in the state of Ohio.
- On April 7, 2021, the Company announced that it had entered into three separate purchase and sale agreements to acquire: (i) a vacant industrial facility (72,000 square feet) located in Eloy, Arizona, which Vext will build the facility out to approximately 34,000 square feet under canopy; (ii) the Company’s operated indoor cultivation facility in Phoenix; (iii) and the Company’s operated indoor cultivation facility in Prescott Valley.
Non-IFRS Financial Measure
The Company has provided certain non-IFRS financial measures including “Gross margin”, “Adjusted EBITDA” and “Adjusted EBITDA margin”. These non-IFRS financial measures do not have a standardized definition under IFRS, nor are they calculated or presented in accordance with IFRS and may not be comparable to similar measures presented by other companies. The Company defines “Gross margin as Gross Profit divided by Revenue. The Company defines “Adjusted EBITDA as net income (loss) from operations, as reported, before interest and tax, adjusted to exclude extraordinary items, non-recurring items, other non-cash items, including stock-based compensation expense, depreciation and amortization, foreign exchange and acquisition related costs, if applicable. The Company defines “Adjusted EBITDA margin” as Adjusted EBITDA divided by Revenue.
The Company has provided these non-IFRS financial measures as supplemental information and in addition to the financial measures that are calculated and presented in accordance with IFRS. The Company believes that these supplemental non-IFRS financial measures provide a valuable additional measure to use when analyzing the operating performance of the business. These supplemental non-IFRS financial measures should not be considered superior to, as a substitute for or as an alternative to, and should only be considered in conjunction with, the IFRS financial measures presented herein. The following tables provide a reconciliation of each of the non-IFRS measures to its closest IFRS measure.
Adjusted EBITDA
The following information provides reconciliations of the supplemental non-IFRS financial measure presented herein to the most directly comparable financial measure calculated and presented in accordance with IFRS.
