HomeMarket NewsMicro Cap StocksVext Science Sells Arizona Cannabis Cultivation Facility, Focusing on Ohio Expansion

Vext Science Sells Arizona Cannabis Cultivation Facility, Focusing on Ohio Expansion

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Vext Science, Inc. (VEXT) is making strategic moves in the cannabis industry, recently signing a definitive agreement to sell its cannabis cultivation facility in Prescott Valley, Arizona. The facility is being sold to affiliates of Elevate Cannabis Co. for $6.5 million in cash, a transaction expected to close by November 1, 2023.

The Vancouver-based company will utilize the proceeds to repay a portion of its outstanding credit facilities, pursue future acquisition opportunities, and support general corporate purposes. Elevate Cannabis, a vertically integrated operator based in Missouri, is expanding its presence into Arizona through this acquisition.

According to Eric Offenberger, CEO of Vext, the sale aligns with their objective to match internal supply with internal demand and maximize margins and long-term returns. This move comes after Vext opened a modular cultivation facility in Eloy earlier this year, allowing the company to grow its cultivation capacity in line with market demand from their owned dispensaries.

The sale of the Arizona facility will also strengthen Vext’s balance sheet as it focuses on profitability and opportunities in both Arizona and Ohio. In fact, Vext recently reached an agreement, pending regulatory review, to acquire two cannabis dispensaries in Ohio for $9.4 million in cash.

To support its expansion efforts, Vext Science announced a non-brokered private placement of common shares, aiming to raise $10 million earlier this month.

VEXTF Price Action

According to market closing on Tuesday afternoon, Vext Science’s shares traded 1.6641% higher at $0.2016 per share.

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Photo: Courtesy of NikolayFrolochkin and ganjaspliffstoreuk by Pixabay

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