Cannabis Company's Plan To Expand Operations In Ohio, A $10M Private Placement

Vext Science, Inc. VEXT VEXTF, a U.S.-based cannabis operator, is making strategic moves to bolster its presence in the burgeoning Ohio cannabis market.

The company has entered into a letter of intent (LOI) to acquire two cannabis dispensaries in Ohio, along with all related licenses and assets, from Big Perm's Dispensary Ohio, LLC. The total consideration for this expansion is approximately $9.8 million, subject to adjustments, per a press release.

See Also: Ohio's Potential Cannabis Goldmine: $400M In Annual Tax Revenue And Thousands Of Jobs

Expanding Footprint In Ohio

• With the impending recreational legalization vote in Ohio's general election in November 2023, Vext is positioning itself for growth in this promising market.
• The acquisition of two dispensaries, in addition to the previously announced Appalachian Pharm acquisition, will provide Vext with a more significant presence in Ohio.
• Pro forma for these transactions, Vext will operate a Tier I cultivation facility, a manufacturing facility, and four retail dispensaries in the state, per a press release.

Private Placement to Fuel Expansion

To support its expansion efforts, Vext Science announced “a non-brokered private placement of common shares of the Company to raise up to $10 million. Vext anticipates that one institutional shareholder, as well as certain members of the Company's senior management team and board of directors, will participate in over 60% of the offering.”

Eric Offenberger, CEO of Vext, emphasized the importance of these strategic moves, stating, "The addition of two dispensaries to our growing vertical footprint in Ohio represents a critical step toward achieving scale and ensuring long-term returns on capital in this attractive growth market." He expressed confidence in Vext's ability to create significant value in the evolving cannabis industry.

Price Action: VEXTF shares were trading up at 1.37% at $0.259 per share at market close Monday afternoon.

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