Vext Science announced that an affiliated entity of the Company's joint venture partner, Appalachian Pharm Processing, an Ohio limited liability company, has passed state inspection and been granted a Certificate of Operation by the Ohio Department of Commerce to begin production at its Jackson, Ohio facility to an initial cultivation area of 25,000 square feet. The construction is fully funded, and the Facility has the potential to be expanded up to 50,000 square feet of cultivation following further application and approval. APP has advised the Company that the Affiliate expects to achieve the first harvest by the first quarter of 2023.
As previously announced in Q4 2021, the Affiliate received a Level I Cultivator provisional license to be co-located at the APP facility at 16064 Beaver Pike, Jackson, Ohio. The Affiliate's establishment of a cultivation footprint in Ohio moves Vext further towards vertical integration in the state, which is expected to occur following the consummation of the letter of intent to acquire an ownership interest in the Affiliate (previously announced in Q4 2021) and after receiving the approval of the Department for such acquisition.
Eric Offenberger, CEO of Vext, commented, "Securing approval to advance the cultivation footprint in Ohio is a significant win for Vext, its joint venture partner APP, and the Affiliate, moving us closer toward full vertical integration in a very attractive, limited license state. Vapen brands are already available on over 95% of the dispensary shelves in the state through our partnerships, and sales continue to grow consistently as the Ohio market develops. With cultivation firmly established, we will be well positioned to cater to the growing customer base and continue to build value for our shareholders."
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