Mr. Eric Offenberger reports

VEXT REPORTS FINANCIAL RESULTS FOR Q3 2023

Vext Science Inc. has released its financial results for the period ended Sept. 30, 2023. All currency references used in this news release are in United States dollars unless otherwise noted.

Management commentary

Eric Offenberger, chief executive officer of Vext, commented: "Q3 was another challenging period for all U.S. retailers, and cannabis was no exception. In an already seasonally slow period for Arizona, the consumer remained stretched, which led to continued pressure on retail price points and smaller baskets year-over-year. Despite these ongoing challenges, our team translated effective promotions into solid growth in traffic and transactions. This enabled our stores to perform better than the market and we estimate the additional share will position us well as consumer discretionary spending improves. Furthermore, we expect first harvest out of our Eloy facility in Q1 2024 and, with the sale of our Prescott Valley facility subsequent to the end of the quarter, we are focused on maximizing the sell-through of our own product through our owned retail stores, and with the goal to improve adjusted EBITDA {earnings before interest, taxes, depreciation and amortization] margins over the next several quarters."

"We are particularly pleased with recent developments in the Ohio market. Shortly after the end of the quarter, Ohio voted to legalize adult-use cannabis. As one of the top 10 states in the U.S. by population, it is expected to become a $4-billion market within the next four years. Our recently announced Ohio expansion transaction, once closed, will bring Vext to four dispensaries in the state, and position us both to capture significant growth as Ohio launches and to sustain that growth as the market matures. We now have strategic vertical footprints in Arizona and Ohio, and all major capex [capital expenditures] in both states is either complete or fully funded. Through 2024, our team will remain focused on building significant shareholder value through continued growth in market share and profitability in Arizona, while capturing a meaningful share of the large Ohio market as it transitions to adult-use in the new year," added Mr. Offenberger.

Summary of recent announcements

• On Nov. 16, 2023, the company announced that it had completed the previously announced sale of its cultivation facility located in Prescott Valley, Ariz., to affiliates of Elevate Cannabis Co. for $6.5-million in cash.
• On Oct. 16, 2023, the company announced that it has reached agreement pending a regulatory review period on an asset purchase agreement, together with other definitive agreements, with Big Perm's Dispensary Ohio LLC and the members thereof, to acquire two cannabis dispensaries located in Ohio owned by Big Perm, as well as all licences and assets related to the business of the dispensaries, for aggregate consideration of approximately $9.4-million, subject to adjustment in certain circumstances. The regulatory review period has since expired and the asset purchase agreement was formally executed on Oct. 27, 2023.
• On Oct. 12, 2023, the company announced that it had completed a non-brokered private placement of $11.5-million through the issuance of 67,647,058 common shares of the company at a price of 17 cents per common share, including the full exercise of a $1.5-million overallotment option.
• On Oct. 4, 2023, the company announced that it has completed the acquisition of Appalachian Pharm Processing LLC, an Ohio limited liability company, together with its subsidiaries and affiliated companies.

Q3 2023 financial results conference call

Vext will also host a conference call and webcast on Tuesday, Nov. 28, 2023, at 8 a.m. ET, to discuss its third quarter financial results.

Date:  Nov. 28, 2023

Time:  8 a.m. ET

Participant dial-in:  416-915-3239 or 1-800-319-4610

Replay dial-in:  1-800-319-6413

Conference ID:  10022744

Playback No.:  0563 (expires on Dec. 12, 2023)

Listen to webcast:  access on-line

For more details, visit Vext's investor website or contact the investor relations team.

About Vext Science Inc.

Vext Science is a United States-based cannabis operator with vertical operations in Arizona and Ohio. Vext's expertise spans from cultivation through to retail operations in its key markets. Based out of Arizona, Vext owns and operates state-of-the-art cultivation facilities, fully built-out manufacturing facilities as well as dispensaries in both Arizona and Ohio. The company manufactures Vapen, one of the leading tetrahydrocannabinol concentrates, edibles and distillate cartridge brands in Arizona. Its selection of award-winning products is created with Vext's in-house, high-quality flower and distributed across Arizona and Ohio, as well as through Vext's partnerships in other states. Vext's leadership team brings a proven record of building and operating profitable multistate operations, with the company having operated profitably since 2016. The company's primary focus is to continue growing in its core states of Arizona and Ohio, bringing together cutting-edge science, manufacturing and marketing to provide a reliable and valuable customer experience while generating shareholder value.

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