Vext Achieves Key Milestone Toward Vertical Integration in Ohio
Vext Science, Inc. (CSE: VEXT) (OTCQX: VEXTF), a cannabinoid brand leader based in Arizona that is leveraging its core expertise in extraction, manufacturing, cultivation, and marketing to build a profitable multi-state footprint, recently announced that an affiliated entity of Appalachian Pharm Processing, LLC, an Ohio limited liability company, has received a Level 1 Cultivator provisional license to be co-located at the APP facility. The Affiliate will be able to build-out an initial cultivation area of up to 25,000 square feet, with the option to increase up to 50,000 square feet after subsequent application and approval from the Ohio Department of Commerce.
“The Affiliate’s receipt of a Level I Cultivator provisional license follows closely on the heels of the announcement that we had secured ownership in a manufacturing license in the State and represents the final step toward achieving near-term vertical integration in Ohio,” said CEO Eric Offenberger. “In our experience, building cultivation capacity in limited license states with large populations and adult-use upside, is a clear path to generating solid returns on capital for shareholders. In July 2022, we expect that we will be able to apply for a change in ownership on a retail license in Ohio, which, once approved, will bring us one step closer to obtaining a fully operating vertically integrated footprint in two very attractive, limited license states – Arizona and Ohio.”
Within the current building envelope, the facility will be co-located with APP’s manufacturing operations and has the ability to develop up to a 75,000 square foot cultivation area. The Affiliate anticipates completing the 25,000-square-foot build-out in Q3 2022. The Company has a letter of intent to acquire a 37.5 percent ownership share in the Affiliate, similar to the letter of intent that resulted in the Company obtaining a 37.5 percent interest in APP. The Affiliate will not be able to transfer ownership until it has secured a certificate of operation from the Ohio Department of Commerce and has received the Department’s approval. The transfer is subject to the Department’s inspection and approval, and it may or may not occur as planned.
Ohio’s state-sanctioned cannabis sales are expected to be between US$350 million to US$425 million in 2021, under a highly regulated, medical-only framework, compared to US$221.5 million in 2020.
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