• Revenue of $12.1 million, level with Q1 2026, as Ohio growth offset the planned Arizona cultivation wind-down.
• Adjusted EBITDA* of $3.4 million, up 22% from Q1 2026; net loss narrowed 79% year-over-year to $(0.3) million.
• Operating cash flow of $1.2 million after a deliberate Ohio inventory build expected to support growth in the second half of the year.
• Opened Fairfield, the sixth Ohio dispensary; completed the Arizona cultivation wind-down; Eloy property now held for sale, with proceeds to reduce secured debt.

Vancouver, British Columbia--(Newsfile Corp. - August 20, 2026) - Vext Science, Inc. ("Vext" or the "Company") (CSE: VEXT) (OTCQX: VEXTF), a U.S.-based specialty retailer operating in the regulated cannabis markets of Ohio and Arizona, today reported its financial results for the period ended June 30, 2026. All currency references used in this news release are in U.S. currency unless otherwise noted.

Summary Financial Results (in thousands of US dollars)

Year-over-year comparisons reflect the wind-down of Arizona cultivation and wholesale activity: wholesale revenue was $1.4 million in Q2 2026 versus $2.6 million in Q2 2025, while retail revenue was essentially unchanged at $10.7 million versus $10.8 million.
* See "Non-IFRS Financial Measures" below for more information regarding Vext's use of non-IFRS financial measures and other reconciliations.
** See "Re-Statement of Financial Information" below for more information regarding the nature and substance of the change in previously disclosed financial information.

Second Quarter 2026 Operational Highlights

• Retail footprint grew to six Ohio dispensaries. Fairfield opened in June, Vext's seventh Ohio dispensary is expected to open in Columbus by Q1 2027, and the Company remains on track to reach the state cap of eight in 2027.
• Customer traffic responded to sharper pricing. Cannabis consumers buy on price and value. As disciplined merchandisers, we drive volume and conversion through aggressive everyday pricing, leveraging our low cost structure to expand market share while protecting operating margins. After pricing was sharpened in May, Central Phoenix posted its highest monthly customer count since October 2023 in June and the Company's operating dispensary in Columbus, Ohio weekly volumes hit first-half highs.
• Ohio yields improved to approximately 101 grams per plant. Vext stocks its own Ohio shelves, so higher yields lower the cost of goods and help fund its retail price position.
• Completed the Arizona cultivation wind-down during Q2. With wholesale flower selling below the cost of growing it, the Phoenix dispensaries now buy from third-party producers, protecting margin while pricing competitively.
• Eloy property is being marketed for sale, with proceeds expected to retire the associated secured debt. Secured debt represents approximately 50% of the appraised value of the Company's owned real estate, and the planned repayment is consistent with the Company's capital allocation priorities.

Management Commentary

Eric Offenberger, CEO of Vext, commented: "Q2 kept us on the course we set out in March. The last Eloy harvest came off in May, Fairfield opened in June, and the bottom line moved to essentially breakeven. We took capital out of Arizona cultivation because the returns no longer cleared our hurdle, and we are redeploying it to Ohio retail, where incremental invested capital earns the highest return available to us."

Mr. Offenberger continued: "Retail comes down to earning the customer's loyalty, controlling the cost of what goes on the shelf, and turning inventory into cash. When we sharpened prices in May, traffic followed, and Central Phoenix had its best month for customer counts since Q4 of 2023. Our shelf cost keeps falling, with better yields at our Ohio cultivation and Arizona product now bought for less than it cost us to grow. Operating cash flow this quarter was timing, not trend, as we built inventory in Ohio to support growth in the second half. That growth will be driven by the contribution from Fairfield and continued momentum across our existing Ohio dispensary base. Additionally, proceeds from the sale of the Eloy facility are expected to be applied toward the debt on that property, further strengthening the balance sheet."

Subsequent Events – Financing and Property Acquisition

On August 14, 2026, the Company extended the maturity of its second East West Bank promissory note by six months, to January 15, 2028. As a condition of the extension, the Company will apply the net proceeds from the sale of its Eloy, Arizona property to partially repay the facility by January 20, 2027.

On August 19, 2026, the Company closed approximately $17.0 million in real estate financing with Wright-Patt Credit Union ("WPCU"), consisting of an $11.0 million term loan (10-year term, 20-year amortization; interest fixed at 8.64% for five years, then reset at the 5-year U.S. Treasury rate plus 4.25%) and a $6.0 million term loan (7-year term and amortization; interest fixed at 8.64% for the term). The loans are secured by the Company's cultivation and manufacturing facility at 16064 Beaver Pike, Jackson, Ohio (the "Jackson Property").

Proceeds were used to refinance approximately $10.3 million of existing WPCU debt, acquire the Jackson Property for $6.0 million, and fund continued development and expansion of the Company's Ohio operations. The acquisition, completed on August 19, 2026, gives the Company 100% ownership of the entity holding the Jackson Property which is approximately 50 acres and the site of its existing Ohio cultivation and manufacturing operations in Jackson, Ohio.

Q2 2026 Financial Results Conference Call

The Company will host a conference call and webcast today at 5:00 pm ET to discuss the financial results for the second quarter of 2026.

Date: August 20, 2026 | Time: 5:00 pm ET
Participant Dial-in: 1-833-752-3966 or 1-647-849-3159
Replay Dial-in: 1-855-669-9658 or 1-412-317-0088
Conference ID: 10211042
Playback #: 4512990 (Expires on September 3, 2026)
Listen to webcast: https://www.gowebcasting.com/14773

For more details, visit Vext's investor website or contact the IR team at investors@vextscience.com.

Re-Statement of Financial Information

Subsequent to the Company's Q1 2026 reporting, the Adjusted EBITDA reconciliation was refined to correct the sign treatment of the change in fair value of debt and to apply the reconciling items on a consistent basis across all periods presented. As a result, Q1 2026 Adjusted EBITDA is presented as $2.8 million, compared to $3.6 million previously reported, and Adjusted EBITDA margin is presented as 23.1%, compared to 29.3% previously reported. In addition, Q2 2025 Adjusted EBITDA is presented as $4.0 million, compared to $4.1 million previously reported, and Adjusted EBITDA margin is presented as 29.8%, compared to 30.4% previously reported. This revision affects the non-IFRS measures only, aligns them with the Company's financial statements, and has no impact on previously reported IFRS revenue, gross profit or net loss.

See also "Non-IFRS Financial Measures" below for more information regarding Vext's use of non-IFRS financial measures and other reconciliations.

Uncertain Tax Position and Income Tax Payable

As at June 30, 2026, the Company has recognized an uncertain tax position ("UTP") liability of $11.7 million, compared to $8.1 million as of December 31, 2025, related to uncertain tax treatments regarding the deductibility of certain costs. The liability has been measured using the "most likely amount" method based on legal advice. The ultimate outcome may differ from the liability recognized; however, the range of possible outcomes is not expected to be material beyond the amount provided.

During the six months ended June 30, 2026, the Company reclassified $4.0 million of income tax payable to uncertain tax position on the condensed consolidated interim statement of financial position, reflecting progress in finalizing its tax filing position for the year ended December 31, 2025. The reclassification reflects the Company's best estimate of its final tax filing position and remains subject to change pending finalization of the 2025 tax returns.

The United States Drug Enforcement Administration issued a final order rescheduling certain state-licensed marijuana products to Schedule III (the "Final Order"). The Final Order includes a non-binding recommendation regarding potential retroactive tax treatment under Section 280E. If implemented, this could materially reduce a portion of the recognized uncertain tax position. The ultimate impact remains uncertain and subject to ongoing evaluation, and no implementing guidance has been issued; accordingly, no impact has been recognized in the financial statements as at June 30, 2026. The Company will evaluate the impact, if any, in future reporting periods.

For additional details, please refer to the Company's condensed consolidated interim financial statements (including the notes thereto) and MD&A filed on SEDAR+.

Non-IFRS Financial Measures

This news release contains certain "non-IFRS financial measures" (equivalent to "non-GAAP financial measures", as such term is defined in National Instrument 52-112 - Non-GAAP and Other Financial Measures Disclosure ("NI 52-112")), "non-IFRS ratios" (equivalent to "non-GAAP ratios", as such term is defined in NI 52-112), or "supplementary financial measures" (as such term is defined in NI 52-112), which are described in further detail below. These financial measures do not have a standardized definition under IFRS, nor are they calculated or presented in accordance with IFRS and may not be comparable to similar measures presented by other companies. The Company has provided these financial measures as supplemental information and in addition to the financial measures that are calculated and presented in accordance with IFRS. The Company believes that these supplemental financial measures provide a valuable additional measure to use when analyzing the operating performance of the business. These supplemental financial measures should not be considered superior to, as a substitute for or as an alternative to, and should only be considered in conjunction with, the IFRS financial measures presented herein.

The Company defines Cash Flow Margin by dividing Net cash provided by operating activities by Sales. The Company believes that this measure provides investors with insight into the Company's ability to generate cash from its revenue base. It is used by the Company to assess operating efficiency and liquidity performance without the impact of financing or investing activities. The calculation of Cash Flow Margin is as follows:

The Company defines EBITDA as earnings before interest, taxes, depreciation and amortization.

The Company defines "Adjusted EBITDA" as net income (loss) from operations, as reported, before interest and tax, adjusted to exclude extraordinary items, non-recurring items, other non-cash items, including stock-based compensation expense, depreciation and amortization, foreign exchange and acquisition related costs, if applicable. The Company defines "Adjusted EBITDA Margin" as Adjusted EBITDA divided by Sales.

The Company believes that these measures are useful financial metrics as they assist in determining the ability to generate cash from operations. Investors should be cautioned that EBITDA and Adjusted EBITDA should not be construed as an alternative to net earnings or cash flows as determined under IFRS. The reconciling items between net earnings, EBITDA, and Adjusted EBITDA are as follows:

** See "Re-Statement of Financial Information" above for more information regarding the nature and substance of the change in previously disclosed financial information.

About Vext Science, Inc.
Vext Science, Inc. (CSE: VEXT) (OTCQX: VEXTF) is a specialty retailer operating in the regulated cannabis markets of Ohio and Arizona. The Company owns its dispensaries and the majority of its real estate, supplying its shelves from its own cultivation and manufacturing where integration improves retail economics, and through third-party sourcing where it does not. Vext generates among the highest free cash flow margins in U.S. retail cannabis industry¹ and applies a disciplined capital allocation framework, directing capital to its highest-returning uses while building long-term shareholder value.

Vext Science, Inc. is listed on the Canadian Securities Exchange under the symbol VEXT and trades on the OTCQX market under the symbol VEXTF. Learn more at www.vextscience.com and connect with Vext on Twitter/X and LinkedIn.

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 regarding future developments and the business and operations of Vext, including but not limited to the Company's expansion in Ohio, its optimization strategy in Arizona and the anticipated results therefrom, the conversion of inventory into cash and the timing thereof, the potential change to the Company's UTP position, the sale of the Eloy facility and the use of proceeds from such sale, the Company's ability to satisfy the conditions to extension from East West Bank; the use of proceeds of the WPCU loan; the receipt of applicable regulatory approvals and the opening of additional dispensaries in Ohio, all of which are subject to the risk factors contained in Vext's continuous disclosure documents filed on SEDAR+ at www.sedarplus.ca.

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.

Eric Offenberger
Chief Executive Officer
844-211-3725

For further information:
Jonathan Ross, Vext Investor Relations
jon.ross@loderockadvisors.com
416-244-9851

SOURCE: Vext Science, Inc.

¹ Source: Public company filings, FY2025. Free cash flow is a non-IFRS financial measure defined as cash from operations less capital expenditures. Free cash flow margin is a non-IFRS ratio defined as free cash flow divided by sales.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/310639

Source: VEXT Science, Inc.