VEXT SCIENCE Announces Joint Operation Agreement with Green Goblin, Inc. of San Diego California
Independent Equity Research Analyst Publishes Update with Rating Increase
VANCOUVER, June 11, 2020 /CNW/ – Vext Science, Inc. (“VEXT” or the “Company”) (OTCQX: VEXTF; CSE: VEXT) a cannabinoid brand leader leveraging core expertise in extraction, manufacturing, cultivation and marketing to build wholesale distribution through revenue and joint ventures, announced today that it has entered into a joint operation agreement with Green Goblin Inc. (“Green Goblin”) of San Diego, to operate extraction, distillation and kitchen operations.
Industry analysts forecast sales of recreational marijuana in California to rise from over $3 billion in 2019 to over $6.5 billion by 2025. Driven by the large population of cannabis consumers, more municipalities allowing marijuana sales, and delivery service innovations, California’s legal cannabis industry is expected to grow again in 2020 with an estimated 300 new retail stores opening and over 5,400 licensed farmers, ensuring adequate supply. California municipalities are removing moratoriums that prohibited recreational marijuana sales and beginning to compete to attract cannabis businesses as they see the tax revenue and job creation potential. Delivery services in the state are another driver of marijuana sales growth, with the ability to deliver next-day, state-wide.
In addition, management is pleased to have received a rating upgrade in the recent research report from Trickle Research, an independent research firm focused on emerging micro and small-cap opportunities. The analyst, David Levine, initiated coverage of VEXT in January 2020. In his recent report, Mr. Levine increased his allocation rating to 5, which is equivalent of a buy rating. Mr. Levine states that since initiating coverage, the “Company has also done some things to better rationalize the opportunities over that same time frame. In short, there are new/evolved pieces to the story and progress that has been made therein that we think have improved visibility as well as the overall prospects of the business.” You can find the full report at www.trickleresearch.com.
Eric Offenberger, CEO commented, “Entering the California market is a significant opportunity for VEXT and the Vapen brand. California is a large but extremely competitive market for THC products. Our joint venture partnership with Green Goblin provides us with an established platform to successfully launch the Vapen brand while minimizing our capital costs. Minimizing risk while increasing shareholder value is the cornerstone of our expansion strategy. Our partnership strategy allows VEXT to enter new markets with lower costs by lowering our customer acquisition costs and working capital requirements for operations.”
About Vext Science
Vext Science, Inc. is a US-based Cannabis THC and Hemp cannabinoid products 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 brand. Based in Arizona, Vext Science, Inc. has one of the leading THC concentrates, edibles, and distillate cartridge brands sold in most of the state’s 100+ dispensaries. Herbal Wellness Center is one of Arizona’s leading dispensaries and we execute all aspects of the cultivation, extraction, edibles infusion and manufacturing processes which insures a product of the highest quality and purity. Product quality and purity are core to our marketing strategy. Vext Science, Inc. is executing its business growth by leveraging experience and expertise in extractions, product manufacturing, and marketing to expand in the U.S. and internationally through revenue and profit-sharing joint venture partnerships. For more information visit our website at www.VextScience.com.
COVID-19 Risk Factor
VEXT may be impacted by business interruptions resulting from pandemics and public health emergencies, including those related to COVID-19. An outbreak of infectious disease, a pandemic, or a similar public health threat, such as the recent outbreak of COVID-19, or a fear of any of the foregoing, could adversely impact VEXT by causing operating, manufacturing, supply chain, and project development delays and disruptions, labor shortages, travel, and shipping disruption and shutdowns (including as a result of government regulation and prevention measures). It is unknown whether and how VEXT may be affected if such a pandemic persists for an extended period of time, including as a result of the waiver of regulatory requirements or the implementation of emergency regulations to which VEXT is subject. Although VEXT has been deemed essential and/or has been permitted to continue operating its facilities in the states in which it operates during the pendency of the COVID-19 pandemic, there is no assurance that the Company’s operations will continue to be deemed essential and/or will continue to be permitted to operate. VEXT may incur expenses or delays relating to such events outside of its control, which could have a material adverse impact on its business, operating results, financial condition and the trading price of the Company’s Common Shares.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in VEXT’s periodic filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should,” and similar expressions, are forward- looking statements.
Forward-looking statements may include, without limitation, statements related COVID-19, to future developments and the business and operations of VEXT, the proposed operational timeline for the joint venture with Texoma and the Processing Facility, and revenue and profit contribution for VEXT’s operations.
Although VEXT has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; being engaged in activities currently considered illegal under U.S. Federal laws; change in laws; reliance on management; requirements for additional financing; competition; hindered market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management’s expectations or estimates of future developments, circumstances or results will materialize. Because of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward- looking statements in this news release are made as of the date of this release. VEXT disclaims any intention or obligation to update or revise such information, except as required by applicable law, and VEXT does not assume any liability for disclosure relating to any other company mentioned herein.
The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.
Chief Operating Officer
For further information, please contact: