Vancouver’s Vext Science Inc., (CSE:VEXT)(OTCQX :VEXTF), announced on Friday the sale of its Kentucky Medical Marijuana license to a subsidiary in exchange for cash amounting to $880,000. The company said that its future business activities in Kentucky will be limited solely in the hemp industry.
Vapen Kentucky LLC, along with an unidentified associate, won the cannabis-processing permit. Vext acquired this partner “with noncash consideration” last month.
Kentucky began issuing medical marijuana licenses last autumn, but many winners have already resold them for a handsome profit.
In an announcement, Eric Offenberger, the CEO of Vext said that this sale would have two effects: it will give Vext more cash and more flexibility in refocusing on its main marijuana markets Arizona and Ohio.
Offenberger stated that by selling the Kentucky processing license, the company is focusing on its core business in Arizona and Ohio where it sees the greatest opportunities for long-term growth. As we prioritize cash flow and profitability growth, the proceeds of this sale are expected to support the expansion of Ohio retail.
Vext stated that Vapen Kentucky would become a hemp only company after the closing of the sale, expected to occur sometime during the second quarter of this year.
Vext reported a loss of $9.2 millions in its most recent quarter and an overall loss of $22.4million for the year 2024.