Cannabis operator with vertical operations in Arizona and Ohio, Vext Science, Inc. VEXT VEXTF reported its first quarter financial results on Wednesday for the three months ended March 31, 2024.
“The first quarter of 2024 continued to present consumer-related challenges to all operators, with the Arizona market overall experiencing another decline in quarterly revenue,” said Eric Offenberger, CEO of Vext.
Vext's time drove traffic during the quarter "by offering bundled products at the retail level, and outperforming state averages despite impacts on revenue and gross margins," Offenberger continued.
With the recreational marijuana market poised to launch any day now Vext is gearing up to sieze the new opportunity.
That said, Vext announced that it has entered into a loan agreement with certain third-party lenders, including Sopica Special Opportunities Fund Limited, under which it has obtained a standby credit facility in the principal amount of up to $2 million. The mover is expected to provide additional financial flexibility primarily in connection with the company’s working capital investment and dispensary additions in Ohio.
“Ohio presents a significant, multi-year growth opportunity for Vext, and the standby credit line we announced today will offer us additional flexibility to address any short-term funding needs as the adult-use program gains momentum and our cash flow returns to growth following the build-out of our significant presence in the state,” Offenberger continued.
Interest on any drawn portion of the standby credit facility accrues at a rate of 12% annually. All obligations owing under the standby credit facility will be converted into a term loan on Nov. 28, 2024, repayable over six months and maturing on May 28, 2025.
As yet another earnings reporting season wraps up it is important to understand what these figures mean for the future of the industry. Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.
Q1 2024 Financial Highlights
- Revenue totaled $8.4 million, down from $9.1 million in the prior year's quarter.
- Net loss after taxes totaled $6.3 million, compared to a net income of $ 73,059 in the first quarter of last year.
- Adjusted EBITDA came in positive at $1.9 million, compared to an adjusted EBITDA gain of $2.9 million in the prior year's quarter.
- Adjusted EBITDA margin was 23.3%, compared to 31.3% in the corresponding period of fiscal 2023.
VEXTF Price Action
Vext's shares traded 5.08% higher at $0.1842 per share after the market close on Tuesday.
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