- Revenue of US$9.4 million; Adjusted EBITDAi of US$3.4 million (margin of 36.6%); Fully diluted EPS of $0.01; and operating cash flow of $4.5 million.
- The Company will hold a conference call and webcast on Tuesday August 24th at 8:00am ET to discuss its Q2 financial results.
VANCOUVER, BC, Aug. 24, 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 June 30, 2021. All currency references used in this news release are in U.S. currency unless otherwise noted.
Eric Offenberger, CEO of VEXT, commented, “Q2 was a solid quarter for Vext, with the consistent efforts of our Arizona team driving record performance at a dispensary level as well as continued demand for our Vapen brand from third-party dispensaries across the state. This effective operating performance translated into both record profitability and operating cash flow in the quarter. The Arizona market is expected to reach $3 billion in annual sales by 2025ii, and Vext is positioning itself for continued profitable growth. We recently completed and began operating an expanded manufacturing facility, and during the quarter, closed the purchase of a 72,000 square foot facility in Eloy, which will nearly triple our indoor cultivation capacity when it comes online in early 2022. In a growing, limited license state, additional cultivation and manufacturing capacity are important strategic advantages. In July, we highlighted another avenue of growth for Vext, by agreeing to produce and distribute both MAJOR cannabis infused beverages and Wynk THC seltzers, in Arizona. With the capacity to produce high quality third-party products and an established distribution channel to the vast majority of dispensaries in the state, we expect to further leverage our existing infrastructure and drive incremental profitability for shareholders.”
Mr. Offenberger added, “Outside of Arizona, we have continued to make progress in Ohio, where the Vapen brand continues to sell well. Ohio is a very promising market, with a limited license framework similar to what we are used to in Arizona. In July, we announced that after a 12-month period, through a joint venture, we would be able to formally apply to the Ohio Board of Pharmacy to transfer ownership of a provisional cannabis dispensary license to Vext and its partners. Between Arizona and Ohio, we expect the next 12 months to be a very exciting growth period as we continue to build a focused, profitable, multi-state footprint.”
Summary of Recent Operating Developments
- On July 6, 2021, Vext announced it had signed a Memorandum of Understanding with SōRSE Technology Corp. (“SōRSE”) to exclusively produce and sell SōRSE’s MAJOR cannabis-infused beverages in Arizona. SōRSE is a leader in water-soluble emulsion technology for integrating functional ingredients into commercially available consumer packaged goods.
- On July 20, 2021, the Company provided an update on its progress toward establishing a retail presence in the State of Ohio. Following on its March 15th announcement that it had signed a letter of intent (the “LOI”) to form a joint venture to access a provisional cannabis dispensary license (the “Provisional License”) held by an Ohio entity (the “License Co.”), Vext announced that the License Co. had received a Certificate of Operation by the Ohio Board of Pharmacy (the “Board”) and was fully operational. Once the License Co. has been operational for 12 months, Vext and its joint venture partner may apply to the Board for a change in ownership of the Provisional License.
- On July 27, 2021, Vext announced that it had signed an agreement with Agtech PA LLC (“Agtech”) to exclusively produce and sell Wynk THC seltzers (“Wynk”) in Arizona. Wynk™ is currently partnering with processors across the country to become the first nationally branded premium THC beverage company in the United States. Vext expects to begin selling Wynk during the second half of 2021.
Q2-2021 Financial Results Conference Call
Vext will host a conference call and webcast Tuesday August 24, 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: August 24, 2021 | Time: 8:00am 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: 43455452
Playback #: 455452 (Expires September 7, 2021)
Listen to webcast: https://bit.ly/3yvpSJb
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.
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.