- Revenue of US$9.2 million, +43% sequentially; Adjusted EBITDA1 of US$3.1 million, +27% sequentially.
- Adjusted fully diluted EPS of US$0.01.
- Phoenix dispensaries operated by VEXT generated successive record months in March 2021 and April 2021, with the trend continuing into May 20212.
- The Company will hold a conference call and webcast to discuss its Q1 financial results at 8:00 a.m. ET.
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 March 31, 2021. All currency references used in this news release are in U.S. currency unless otherwise noted.
Summary Financial Results (unaudited)
Management Commentary
Eric Offenberger, CEO of VEXT commented, “Our team generated strong financial performance in Q1, fueled by a record month in March for our operated Phoenix dispensaries. Momentum in the Arizona market continues to build, and with recent announcements of fully funded expansions to effectively triple our cultivation footprint and a four-fold expansion to our manufacturing space, we are prepared for the upcoming growth. Vext continues to translate solid top-line performance into expanding Adjusted EBITDA and positive fully diluted earnings per share. The Company has been profitable since 20164 and we are committed to delivering organic growth for shareholders, while judiciously building our footprint in Arizona, both on the retail side of the business and through wholesale channels led by the strength of the Vapen brand.”
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| 1See “Non-IFRS Financial Measures” in this newsrelease for more information regarding VEXT’s use of Non-IFRS financial measures and other reconciliations. |
| 2As of the date of this newsrelease. |
| 3The reference to n.m. means “not meaningful”. |
| 4Based on net income after taxes. |
Summary of Recent Operating Developments
- On May 11, 2021, Vext announced that it had received approval from the City of Eloy to build and operate a state-of-the-art medical cannabis cultivation facility. As announced on April 7, 2021, Vext entered into a purchase and sale agreement to acquire a vacant 72,000 square foot industrial facility (~34,000 square feet of future canopy) located in the City of Eloy.
- On May 20, 2021, the Company announced that it had received approval from the State of Arizona to begin operations in its recently expanded, dedicated extraction and manufacturing facility located at 4215 N. 40th Avenue, Phoenix. Previously, the Company had been conducting extraction and manufacturing operations in space co-located with one of its cultivation facilities. As part of the move to a dedicated footprint, Vext increased overall space by four times and built additional automation into its processes. The expansion included: additional extract and concentrates production space; a tripling of the Company’s kitchen capacity in order to meet growing demand for edibles as the Arizona adult-use market develops; a re-designed finished goods area to support increased efficiency and throughput; and a dedicated product development lab, which the Company will utilize to continue innovating the Vapen line of branded products.
Q1-2021 Financial Results Conference Call
Vext will host a conference call and webcast Wednesday May 26, 2021, at 8:00 a.m. ET to discuss its first quarter financial results. The call will be chaired by Eric Offenberger, CEO and Vahan Ajamian, CFO:
Date: May 26, 2021 | Time: 8:00 a.m. ET
Participant Dial-in: 416-764-8609 or 1-888-390-0605
Replay Dial-in: 416-764-8677 or 1-888-390-0541
Conference ID: 67631670
Playback #: 631670 (Expires June 9, 2021)
Listen to webcast: https://bit.ly/2RfEtrf
