Vext Science, a U.S.-based cannabis operator in Arizona and Ohio, said it plans to discontinue operations at its cultivation facility in Eloy, Arizona and potentially sell the property.
"Arizona remains an important market for Vext, but persistent state-wide oversupply and recent market contraction necessitate a leaner, more efficient footprint to maintain and grow profitability. By transitioning away from internal cultivation at Eloy, we can take advantage of favorable wholesale market conditions while maintaining a reliable supply of high-quality product for our retail network. This shift will enable us to proactively address market headwinds, reduce debt, and improve profitability without compromising the customer experience. At the same time, we are redeploying capital and assets to Ohio, where the market continues to demonstrate strong growth following the transition to adult-use sales. As we approach the state's retail cap, we intend to seek approval to expand our Jackson cultivation facility to support our growing vertically integrated footprint and long-term plans in the state," said Vext CEO Eric Offenberger in a statement.
Vext's Arizona retail operations will be supplied through the wholesale market, which the company expects to offer a lower cost of supply for the foreseeable future. The Phoenix facility retains manufacturing and processing, along with cultivation infrastructure, preserving the ability to resume internal production quickly should market conditions change.
The Eloy Facility is expected to be decommissioned by the end of the second quarter of 2026, and the building will be marketed for sale.
While Vext takes a step back in Arizona, it's seeking approval in Ohio to expand its cultivation facility in Jackson. Vext currently operates five consolidated dispensaries in Ohio and holds eight retail licenses, the state's current ownership cap. Its sixth location is expected to open in the second quarter of 2026, with its seventh location currently under construction. Construction on the eighth and final location is anticipated to begin in the third quarter of 2026. The planned cultivation expansion is expected to support new dispensaries expected to come online in 2026 and 2027, increasing demand across the Company's Ohio retail network.
