- Revenue of US$8.8 million
- Adjusted EBITDA of US$4.8 million
- The Company will hold a conference call and webcast on Thursday, August 25 at 8 am ET to review its financial results.
VANCOUVER, BC, Aug. 24, 2022 /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 June 30, 2022. All currency references used in this news release are in U.S. currency unless otherwise noted.
Summary Financial Results (unaudited)
| Q2 2022 | Q1 20221 | Q2 2021 | |
| Revenue | $8,765,798 | $10,791,133 | $9,375,774 |
| Gross margin before impact of biological assets (%) 2 | 65 % | 52 % | 45 % |
| Adjusted Gross Margin (%) 1, 2, 3 | 75 % | 44 % | 45 % |
| Adjusted EBITDA 1, 2 | $4,847,110 | $3,803,814 | $3,463,755 |
| Adjusted EBITDA margin (%) 1, 2 | 55 % | 35 % | 37 % |
Management Commentary
Eric Offenberger, CEO of Vext commented, “Vext continued to execute during the second quarter against the backdrop of a very challenging environment for many consumer-facing companies. In our primary state of Arizona, medical patient count decreased 30% in the first six months of the year4, with corresponding growth in the recreational market leading to lower average basket sizes as consumers watch their discretionary spending. Despite this headwind, our team’s relentless focus on targeted, profitable promotions and consumer-driven innovation kept traffic strong and gross margins stable. Our culture of driving progressive efficiencies from the business also led to robust Adjusted EBITDA growth and positive cash flow from operations. In our second focus state, Ohio, the medical patient count has grown by over 20% in the first six months of 20225, and Vext continues to focus on building its footprint in the state. Our Vapen products are now available in 95% of the dispensaries in Ohio and Q2 was a record period for sales. In September, we expect to file to transfer our first retail license to a joint venture with our Ohio-based partner, further solidifying a growing vertical platform that already includes a Level I Cultivator provisional license and an operating manufacturing facility in Jackson. We believe the Ohio market represents a very important growth opportunity for Vext, and we will continue to grow our vertical position in the state.”
Mr. Offenberger continued, “Our proven track record of execution and culture of operational excellence, puts us in a position of strength. In the current economic climate, companies that can promote effectively, and offer a quality and value proposition to the customer, will foster enduring loyalty. With Vext’s diverse portfolio, including one of the top brands in Arizona, we are well placed to continue to grow in the state while building-out our Ohio footprint. We expect the ongoing execution of our strategy to continue generating profitability and cash flow, while building value for shareholders.”
Summary of Recent Announcements
- In Q2, the Company announced that Stephan Bankosz, current CFO of the Company’s primary operating subsidiary, will take over as Vext’s interim CFO and Corporate Secretary, effective June 15, 2022.
- On July 6, 2022, the Company announced that it has changed its auditor from Harbourside CPA LLP to BF Borgers CPA PC.
- On July 8, 2022, Vext announced that it has entered into an agreement with a California-based lender for a $22.2 million credit facility, which will be used to refinance current secured debt, and working capital for potential acquisitions, capital expenditures and general and administrative expenses. This credit facility lowers Vext’s cost of capital, and gives the Company additional flexibility as Vext continues to execute its growth plans in Arizona and Ohio.
Q2-2022 Financial Results Conference Call
Vext will host a conference call and webcast on Thursday, August 25 at 8:00 a.m. ET to discuss its second quarter financial results.
Date: August 25, 2022 | Time: 8:00am ET
Participant Dial-in: 416-764-8609 or 888-390-0605
Replay Dial-in: 416-764-8677 or 1-888-390-0541
Conference ID: 88946996
Playback #: 946996 (Expires on September 8, 2022)
Listen to webcast:https://app.webinar.net/xoZz60owpA4
For more details, visit Vext’s investor website or contact the IR team at investors@vextscience.com.
