Arizona Cannabis Brand Vext Science Reports Q1 Positive Adjusted EBITDA Of $3.1M

Cannabis company Vext Science, Inc. VEXTF VEXT released its first-quarter unaudited financial results on Wednesday with revenue of $9.16 million, compared to $4.1 million in the same period of 2020.

Financial Highlights

• The company’s gross margin for the period was 45.4%, which compares to 29.4% in the corresponding quarter of the prior year;
• Its net income after taxes amounted to $1.14 million, compared to a loss of $971,020 in the first quarter of 2020;
• Earnings per share fully diluted were $0.01, which compares to a loss per share of $0.01 in the same period last year;
• Vext achieved a positive adjusted EBITDA in the quarter of $3.06 million, compared to an adjusted EBITDA loss of $74,717 in the first quarter of 2020.

Recent Business Activities

• Earlier this month, the Arizona-based company obtained authorization from the City of Eloy to construct and run a state-of-the-art medical cannabis cultivation facility. In April, Vext announced it has signed a purchase and sale agreement to buy an empty 72,000 sq. ft. industrial facility in Eloy.
• Last week the company noted it has received authorization from the State of Arizona to commence activities in its Phoenix-based extraction and production facility. The approval comes after the company made significant expansion undertakings – increasing overall space by four times and adding automation into its processes.

"Our team generated strong financial performance in Q1, fueled by a record month in March for our operated Phoenix dispensaries,” Eric Offenberger, CEO of VEXT stated. “Momentum in the Arizona market continues to build, and with recent announcements of fully funded expansions to effectively triple our cultivation footprint and a four-fold expansion to our manufacturing space, we are prepared for the upcoming growth."

Solid Performance

“Vext continues to translate solid top-line performance into expanding Adjusted EBITDA and positive fully diluted earnings per share. The Company has been profitable since 2016 and we are committed to delivering organic growth for shareholders, while judiciously building our footprint in Arizona, both on the retail side of the business and through wholesale channels led by the strength of the Vapen brand,” Offenberger concluded.  

Price Action

Vext’s shares were trading 0.57% higher at 78 cents per share at the time of writing.

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Image Credit: Matca Films