Vext Cannabis Reports 8% YoY Decline in Q2 Revenue, but Key Analysts Expect Ohio Market to Be a Key Growth Driver

Vext Science, Inc. (CSE:VEXT)(OTCQX:VEXTF) reported that its revenue for the quarter ended June 30, 2024 declined to $84 million from $92 million in the prior year period.

The vertically integrated operator in Arizona and Ohio is expected to benefit from the recent launch of adult-use cannabis sales in Ohio. Vext has secured dual licenses for cultivation and manufacturing facilities, as well as operating dispensary licenses in Jackson and Columbus, and received approval for adult-use cannabis sales from the Ohio Cannabis Control Commission in August.

"The commencement of adult-use sales in Ohio subsequent to the quarter end represents an important milestone for Vext," said CEO Eric Offenberger. "With over 2 years of preparation and in-state operating experience, we were well-positioned for this transition, and are pleased with the early results. We view Ohio as one of the most promising adult-use markets in the U.S. and are excited about the opportunities it presents for Vext."

Q2 2024 Financial Highlights:
- Gross profit decreased to $15 million from $27 million
- Total operating expenses increased to $53 million from $20 million
- Net loss after tax was $44 million, compared to net income of $535,454
- Adjusted EBITDA was $10.8 million, compared to $19 million profit

Outlook:
Vext's Ohio platform includes a Tier 1 cultivation facility, manufacturing facility, and 2 operating dispensaries.
Upon completing previously announced acquisitions and securing additional Tier 1 cultivation licenses as permitted by state law, Vext expects to reach the state's dispensary license cap in 2024.

"For the remainder of 2024, we will focus on seamlessly transitioning our Ohio dispensaries to serve both the medical and adult-use markets, improve the efficiency of our Arizona operations, and pursue growth opportunities across our business," said Offenberger. "This should drive increased cash flow and deliver sustainable, long-term returns for our shareholders."

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