Vancouver-based Vext Science Inc. (CSE: VEXT) (OTCQX: VEXTF) on Friday announced the sale of its Kentucky medical marijuana license through a subsidiary for $880,000 in cash, and said its business in the Bluegrass State going forward will only be in the hemp sector.
The cannabis processing permit was won by Vapen Kentucky LLC and a partner; Vext bought out the unidentified partner last month “utilizing non-cash consideration,” it said in a press release.
Kentucky only began awarding medical marijuana permits last fall, but already many of the winners have resold their licenses for a tidy profit.
The sale is intended to have a twofold effect for Vext: to give it more working capital and provide more flexibility to refocus on its core marijuana markets of Arizona and Ohio, CEO Eric Offenberger said in the announcement.
“By divesting the processing license in Kentucky, we are deepening our focus on our core operations in Arizona and Ohio, where we see the most compelling opportunities to drive long-term value,” Offenberger said. “The proceeds of the sale strengthens our balance sheet and will support the build out of our Ohio retail footprint as we continue to prioritize profitability and cash flow growth.”
After the sale closes, which is expected sometime in the second quarter this year, Vapen Kentucky will pivot to being a hemp-only company, Vext said.
Vext posted a $9.2 million loss in the most recent quarter, and a net loss of $22.4 million for 2024.
[[{“value”:”The company said it plans to focus on operations in Arizona and Ohio.
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