Mr. Eric Offenberger reports

VEXT REPORTS FIRST QUARTER 2020 RESULTS

Vext Science Inc. has released financial results for the period ended March 31, 2020. All currency references used in this news release are in U.S. currency.

                   FIRST QUARTER SUMMARY FINANCIAL RESULTS
                   (in millions, except per-share amounts)
  
                                                   Three months ended          
                                            March 31, 2020      March 31, 2019

Gross revenues                                        $4.1                $6.5
Gross margin (%)                                        29%                 49%
Operating expenses                                    $2.3                $1.0
Net income (loss) after taxes                        ($1.0)               $2.2
Net income (loss) per share, diluted                ($0.01)              $0.02
EBITDA                                               ($0.8)               $2.3

Eric Offenberger, chief executive officer of Vext, commented: "In the fourth quarter of 2019, we adjusted the Herbal Wellness Center (HWC) dispensary fee structure, which creates an incongruent first quarter year-over-year compare and does not accurately represent the progress in our business. The acquisition of an Arizona-based company to provide exclusive turnkey services for Organica Patient Group Inc., completed in the second quarter of 2020, provides the company with another Arizona dispensary, which will increase revenue for the remainder of the year. COVID-19-related delays on goods imported from China, including cartridges and packaging, limited sales to HWC in the first quarter. Shipments from China have resumed, and with HWC inventory levels replenished, we anticipate revenue to recover in the second quarter. Helped by increasing HWC sales, a second medical marijuana dispensary in Arizona, our multistate joint ventures and investments coming on-line, we anticipate returning to year-over-year revenue growth for the remainder of 2020. Also, operating expenses in the first quarter included several one-time and non-cash items, not incurred in the same period last year, and therefore, we anticipate operating expense margins to improve going forward. Vext has sufficient liquidity to execute on our strategy of adding additional partnerships and investments in new states that will accelerate our revenue growth, improve profitability and increase shareholder value."

Please refer to Vext's management's discussion and analysis filed with SEDAR on June 1, 2020, for a complete discussion of the company's result of operations, which is based on its condensed consolidated financial statements for the quarter ended March 31, 2019.

First quarter 2020 results overview (for the period ended March 31, 2020, with all compares with the prior-year three-month period)

The company's revenues from operations were $4.1-million, compared with $6.5-million in the comparative quarter in 2019. During the fourth quarter of 2019, the company adjusted revenue to better reflect the current business trends. Furthermore, revenue was impacted by the delay in shipments from China under COVID-19 restrictions, so it reduced the product sales to HWC. The revenue adjustments and delayed shipments from China due to the pandemic reduced the company's gross revenue on a comparative quarterly basis, thus impacting the gross profit in the first quarter of 2020. Additionally, the company's operating expenses were $2.3-million compared with $1.0-million in the comparative quarter in 2019 mainly due to several one-time and non-cash expenses and expenses related to being a public company that were not incurred in the same period prior year; therefore, this further impacted the net income and EBITDA (earnings before interest, taxes, depreciation and amortization) for the first quarter of 2020.

As both medical and economic concerns have increased over the past few months, regarding the spreading and impact of the novel coronavirus known as COVID-19, the company wants to assure its shareholders that it is taking all the necessary steps to protect employees and customers, ensuring full compliance with established guidelines. The safety of employees and customers has been a primary focus.

About Vext Science Inc.

Vext Science is a United States-based cannabis THC (tetrahydrocannabinol) and hemp cannabinoid product company, manufacturing THC cartridges, concentrates, edibles and accessories under the Vapen brand and hemp-based products under the Pure Touch Botanicals brand, as well as the Vapen CBD (cannabidiol) brand. Based in Arizona, Vext has one of the leading THC concentrates, edibles and distillate cartridge brands sold in the majority of the state's 100-plus dispensaries. Herbal Wellness Center is one of Arizona's leading dispensaries, and it executes all aspects of the cultivation, extraction, edibles infusion and manufacturing processes, which ensure a product of the highest quality and purity. Product quality and purity are core to the company's marketing strategy.

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