Vext Science (CSE VEXT, OTCQX VEXTF), a company that specializes in the production of recreational cannabis products and has been operating since Ohio legalized it for adult-use, reported a higher income during its fourth quarter as well as a full year revenue 2024.
Cannabis operator reports fourth-quarter revenues of $10,2 million. This is up by 13% compared to the $9 million in the prior quarter and 21% compared to the $8.4 millions reported for the fourth quarter of the year 2023. This growth was mainly due to Ohio where cannabis recreational sales started in August.
Revenue for the entire year, ending on December 31, 2024 was $36 million. This is a 3 percent increase from 2023.
Eric Offenberger, the CEO of Vext, said that “2024 will be an important year in Vext’s history.” The launch of Ohio’s adult-use markets marked an inflection. We are already reaping the rewards from our investment in the state.
In the fourth quarter, sales at Ohio’s retail stores in Jackson and Columbus grew by around 40 percent. This helped to offset the weakness in Arizona where cannabis sales fell by 25% per store statewide compared with last year.
Vext’s net loss was $9.2m for the quarter, but it is still an improvement over the net loss that the company reported for 2024. The loss totaled $22.4m. The net loss is a significant increase from the $2.4m in losses reported for the third quarter. These were primarily due to costs associated with entering a new market as well as impairments resulting from joint-ventures that Vext was trying to eliminate.
Vext still reported an adjusted EBITDA in the fourth-quarter of 2024 of $3.2 millions, up significantly from the $550.621 in the fourth-quarter of 2023. Cash flow turned positive, with a total of $4 million in cash from operations.
Big Perm’s Dispensary Ohio LLC has also been approved to purchase two additional Ohio dispensaries, adding locations in Athens & Jeffersonville.
Offenberger explained that, “As the company moves into 2025 our main focus is to drive free cash flow and reduce debt while maximising shareholder values.” Today’s approval by the regulatory body puts us in a position to more than double our retail presence in Ohio.
Vext’s 2024 net loss was $22,4 million, down from $4.4 million the year before, due in part to investment made for Ohio’s newly opened recreational market. Arizona’s sales are expected to drop in 2025 because of the ongoing challenges on the market, but Ohio revenues should increase “substantially” after a year-long recreational sale.
Vext holds a provisional permit for the opening of a fifth Ohio dispensary, in Portsmouth. It expects it to be open by third quarter. It said that it has recently expanded and relocated its dispensary in Jackson, Ohio. The space for retail, inventory, and drive-thru services was doubled.
The company has also said that it will be reducing operations outside of core markets. It is winding up its Oklahoma joint-venture and pulling out from the California joint-operation. Vext bought the remainder of Vapen Kentucky’s 50% in March 2025. Vapen Kentucky was granted a Kentucky medical cannabis processing license.
In March 2024 the company converted $4.6million of secured shareholder notes into equity, which reduced interest costs and future obligations. Vext’s goal is to have eight of the maximum allowed dispensaries for Ohio by 2026. This will be subject to local and state permits.
Arizona admitted its market was becoming increasingly competitive. According to its M&A filing, the state had 168 operating dispensaries at year-end, with the average store recording monthly sales of $591,933 in December 2024, down 15.5% from $700,675 in December 2023.