Vext Science has announced its intention to discontinue operations at its cultivation facility in Eloy, Arizona and pursue the sale of the Eloy Facility, as a part of its broader strategy focused on optimizing its Arizona footprint for profitability and return on capital, and supporting continued growth in Ohio. All currency references used in this news release are in U.S. currency unless otherwise noted.
"The planned closure of our Eloy facility and its subsequent potential sale reflects our commitment to disciplined capital allocation while prioritizing high-growth opportunities," said Eric Offenberger, CEO of Vext.
"Arizona remains an important market for Vext, but persistent state-wide oversupply and recent market contraction necessitate a leaner, more efficient footprint to maintain and grow profitability. By transitioning away from internal cultivation at Eloy, we can take advantage of favorable wholesale market conditions while maintaining a reliable supply of high-quality product for our retail network. This shift will enable us to proactively address market headwinds, reduce debt, and improve profitability without compromising the customer experience. At the same time, we are redeploying capital and assets to Ohio, where the market continues to demonstrate strong growth following the transition to adult-use sales. As we approach the state's retail cap, we intend to seek approval to expand our Jackson cultivation facility to support our growing vertically integrated footprint and long-term plans in the state," added Mr. Offenberger.
For more information:
Vext Science
[email protected]
vextscience.com
