Vext Announces Strong Growth for 2021

Revenue of $37.2 Million up 48%, Adjusted EBITDA of $13.4 Million up 100%

  • Q4-2021 revenue of $9.3 million, +45% vs. Q4-2020; Adjusted EBITDA of $3.4 million, +47% vs. prior year period. Cash flow from operations was $4.8 million.
  • FY-2021 revenue of $37.2 million, + 48% vs. FY-2020; Adjusted EBITDA of $13.4 million, +100% vs. prior year period. Cash flow from operations was $11.7 million (87% of Adjusted EBITDA).
  • Experienced senior financial and operations executive Daniel Engel, CPA to join the Company as CFO, effective May 2, 2022. Current CFO Vahan Ajamian will remain for a planned transition through May 31, 2022.
  • The Company will hold a conference call and webcast on Wednesday, April 20, 2022, at 8am ET to review financial results.

VANCOUVER, BC, April 20, 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 December 31, 2021. All currency references used in this news release are in U.S. currency unless otherwise noted.

Summary Financial Results (unaudited)

FY 2021FY 2020Q4 2021Q4 2020
Gross margin (%)144%40%42%47%
Net income after taxes$4,986,719$2,125,068$1,085,087$1,126,716
Net income per share, diluted$0.03$0.02$0.01$0.02
Adjusted EBITDA1$13,394,264$6,699,794$3,370,272$2,293,174
Adjusted EBITDA margin (%)136%27%36%36%
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, “2021 was a productive year for Vext, with Arizona moving to recreational sales in January, and our early entry and progress toward vertical integration in the Ohio market. During 2021, Arizona generated over $1.9 billion[2] in combined medical and recreational sales for the full year, placing it among the top markets in the US[3]. Vext is well-positioned to continue delivering value for its customers, team members and shareholders. During Q4, our team in Arizona continued to prove the effectiveness of the operating model, with targeted promotional investments translating into relatively steady revenue and gross margins on a sequential basis, despite the inflationary pressures faced by consumers. With this backdrop and a consistent focus on cost control and efficiencies, I am pleased that our team continued to drive solid Adjusted EBITDA margins of 36% in Q4 2021.”

Mr. Offenberger continued, “We expect the next 12 months to be a period of further expansion for Vext. Specifically, during 2022, we are planning for prudent footprint expansions in the Arizona market across our wholly-owned cultivation, manufacturing and retail operations, with a keen eye toward ongoing profitability. We continue to build-out a vertical footprint in the Ohio market with our joint-venture partners, and will be in a position to apply for a license transfer for the dispensary we currently have under letter of intent in Columbus. Vext has significant financial flexibility entering 2022, with a solid balance sheet, fully funded expansion plans, and ongoing cash flow generation.”

Summary of Recent Operating Developments

  • On February 10, 2022, Vext announced the appointment of highly experienced global executive and director Mark W. Opzoomer to the Company’s board of directors.
  • In Q4 and Q1 respectively, the Company completed expansions of its cultivation facilities in Phoenix and Prescott Valley, bringing total indoor cultivation to 24,000 square feet.
  • On November 17, 2021, Vext announced that its joint venture partner in Ohio was awarded a Level I Cultivator Provisional License. Granted by the Ohio Department of Commerce, this license will enable the Company’s partner to build-out an initial cultivation area of up to 25,000 square feet, with the potential to expand up to 50,000 square feet following further application and approval.
  • On October 28, 2021, through its joint venture partner Appalachian Pharm Processing, LLC, Vext received approval from the State of Ohio and has been granted ownership of an operating manufacturing facility in Jackson, Ohio.

Daniel Engel to Join as Chief Financial Officer

Vext also announced that senior financial and operations executive Daniel Engel will join the Company on May 2, 2022, as the Company’s CFO. Current CFO Vahan Ajamian will be staying for a planned transition period through May 31, 2022.

Eric Offenberger commented, “I would like to thank Vahan for his contributions to Vext over the past year, and welcome Daniel Engel to the CFO role. Daniel brings a proven track record of senior financial and operations success to Vext, with deep experience managing growth and efficiency programs in the retail and manufacturing sectors, as well as in executing M&A and successful integrations. At this stage of the Company’s development, it is important for us to have a CFO with deep connections to the operating business on the ground in Arizona as we prepare for continued growth through 2022 and 2023.”

Daniel Engel is a CPA with more than 25 years of multi-site, manufacturing, distribution, service and transformational leadership experience as a CFO and COO for organizations ranging from $20 million to $1.2 billion in annual revenue. He is committed to building cohesive, efficiency-oriented cultures that deliver revenue growth and cost savings. Daniel joins the Company from his previous position as CFO of a California-based transportation parts manufacturer. He  is a CPA, has an MSBA in Business and Finance from California State University, and a BA in Economics from Claremont McKenna College in California.

3  Marijuana Business Factbook, April 2021

Q4-2021 Financial Results Conference Call

Vext will host a conference call and webcast on Wednesday, April 20, 2022 at 8am ET to discuss its fourth quarter financial results. The call will be chaired by Eric Offenberger, CEO and Vahan Ajamian, CFO:

Date: April 20, 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: 88919267
Playback #: 919267 (Expires on May 4, 2022)
Listen to webcast:

For more details, visit Vext’s investor website or contact the IR team at

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.

FY 2021FY 2020Q4 2021Q4 2020
Net income after taxes$4,986,719$2,125,067$1,085,087$1,126,716
Interest expense$215,209$75,060$233,420$(109,348)
Depreciation & amortization$3,288,783$2,126,458$939,470$629,228
Share (Profit)/Loss on JVs$539,557$520,802$130,860$127,627
Share-based compensation$949,664$879,676$132,822$243,554
Office and general*$500,000
Gain on decognitition of ROU$(3,195)
(Gain)/Loss on Investment$425,350$212,675
Loss on asset disposal
Other Income$(75,000)$161,284$77,987
Foreign exchange$10,726$(328,172)$2,869$(353,179)
Adjusted EBITDA$13,394,264$6,699,794$3,370,272$2,293,174
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