Vext Science, a U.S.-based cannabis operator with vertically integrated operations in Arizona and Ohio, announced that Vapen Kentucky, a wholly owned subsidiary of Vext, together with its local partner, has entered into a definitive agreement to sell a medical cannabis processing license in the state of Kentucky for $880,000.
"This transaction underscores our disciplined approach to capital allocation and strategic focus on maximising returns in our core markets," said Eric Offenberger, CEO of Vext. "By divesting the processing license in Kentucky, we are deepening our focus on our core operations in Arizona and Ohio, where we see the most compelling opportunities to drive long-term value. The proceeds of the sale strengthens our balance sheet and will support the build out of our Ohio retail footprint as we continue to prioritize profitability and cash flow growth across our vertically-integrated operations."
On March 16, 2025, Vext acquired the remaining 50% membership interest in Vapen Kentucky from its joint venture partner, using non-cash consideration. Upon closing of the transaction, Vapen Kentucky's operations will be restructured to focus exclusively on hemp-related business opportunities.
The transaction remains subject to customary closing conditions, including regulatory approval by the state of Kentucky. Vext expects the Transaction to close during the second quarter of 2025.
