💸 High Impact

Vext Reports With A Huge Bet On Ohio

The What - Vext Science, Inc., a name that might not be rolling off every tongue just yet, is quietly building a cannabis empire in Ohio and Arizona. With a revenue of $8.4 million and an adjusted EBITDA of $1.1 million in Q2 2024, Vext isn’t just playing the game—it’s positioning itself as a frontrunner in the cannabis industry. The launch of adult-use cannabis sales in Ohio, which kicked off on August 6th, marks a significant milestone for the company, setting the stage for what could be a very green future—literally and financially.

Ohio is where the magic is happening for Vext. With one of the largest footprints among publicly traded peers in the state, the company’s Tier 1 cultivation facility, manufacturing plant, and two operating retail dispensaries form the backbone of its strategy. And Vext isn’t just sitting on its laurels; the company is eyeing the 2024 state dispensary license cap with the confidence of a seasoned poker player holding a royal flush. The recent operational green light from the Ohio Division of Cannabis Control to sell adult-use cannabis only bolsters Vext’s position as a key player in what could become one of the most lucrative markets in the U.S.

But let’s not pretend everything’s been rosy. CEO Eric Offenberger was quick to acknowledge the challenges of the first half of the year. Consumer-facing companies across sectors have felt the pinch, and Vext was no exception. However, Offenberger’s optimism about the future is infectious. Targeted promotions, value-based products, and a seamless transition to serving both medical and adult-use markets in Ohio are just a few of the strategies in Vext’s playbook. Add in enhanced efficiency in their Arizona operations, and Vext is not just looking to survive—it’s aiming to thrive, with increasing cash flow and long-term returns firmly in its sights.

And just when you thought things couldn’t get more interesting, there’s a little boardroom drama to spice things up. Jason Thai Nguyen, the Chairman of Vext’s Board, has stepped down, making way for Mark W. Opzoomer to take the helm as non-executive Chairman. While Nguyen will remain on the Board, it’s clear that Vext is gearing up for its next chapter with Opzoomer, a seasoned player who already has a deep understanding of the business. Offenberger’s confidence in Opzoomer is palpable, and as Vext dives headfirst into the Ohio adult-use market, all eyes will be on this cannabis company to see if it can continue to drive shareholder value and solidify its place in the rapidly evolving landscape of U.S. cannabis.

📈 Dog Walkers

TerrAscend Announces Major Buy Back

TerrAscend Corp.'s recent announcement of a $10 million stock buyback program, representing up to 5% of its outstanding shares, signals a strategic maneuver aimed at boosting shareholder confidence. This move, while modest relative to its 291 million shares outstanding, suggests management believes the stock is undervalued and presents an opportunity for value creation. However, in the volatile cannabis sector, this buyback could be more about optics than substance. With a 12-month timeline and no obligation to complete the buyback, TerrAscend maintains flexibility, ensuring that this financial strategy remains adaptable to market conditions.

The Feds Are Watching

The Michigan Cannabis Regulatory Agency (CRA) filed a complaint against HiCloud LLC, a large marijuana grower in West Michigan, following the arrest of its owner, Endrit Cali, for felony possession. Cali was caught transporting 43.5 pounds of marijuana and other products in a rental truck without the necessary transporter’s license. Further investigation revealed untagged marijuana at HiCloud’s regulated facility, raising suspicions of illegal distribution. The CRA is considering fines and revoking HiCloud’s licenses. This case underscores the CRA's intensified efforts to combat illicit activities within the state's regulated cannabis market.

Original Story - GMR

Bill Cassidy Is A Friend Of The Industry

Senator Bill Cassidy (R-LA), despite critiquing the Biden administration's marijuana rescheduling process, views moving cannabis from Schedule I to Schedule III under the Controlled Substances Act as beneficial. Cassidy advocates for taxing cannabis and enabling licensed businesses to access banking services, aligning with his support for the SAFER Banking Act, which aims to protect financial institutions working with state-legal cannabis businesses. While Cassidy's stance reflects a pragmatic approach to cannabis regulation, he, along with Senator Thom Tillis (R-NC), stops short of endorsing full legalization, instead emphasizing the need for a comprehensive regulatory framework, akin to tobacco regulation, to address public safety and market transparency concerns.

Full Story - MM

🗞️ The News

GOP Senator Says ‘Let’s Tax’ Marijuana, Adding That Rescheduling Is A “Good Thing’

People Who Use Marijuana Are Less Likely To Be Obese, New Study Shows

Ohio marijuana retailers double sales after adult-use market launch

California hemp fight signals long-term struggle with marijuana

Future of Cannabis: A Conversation with Jason Vedadi, Co-Founder of Harvest Health

Vext Announces Financial Results for Q2 2024

📺 YouTube

Future of Cannabis Industry with Executive Chairman of Harvest Health

What we covered:

✅ On this episode of the Trade To Black Podcast! Join Host Shadd Dales as he sits down with Jason Vedadi, Co-Founder of Harvest Health, and now CEO of Story Cannabis.

We dive deep into one of the cannabis industry's biggest mergers, discuss the evolution of the market since 2021, and explore what's on the horizon for 2024 and beyond.

Get insider insights on major catalysts like Amendment 3 and rescheduling, the challenges of being a public company, and the potential future of private MSOs. Don't miss this must-listen episode for anyone interested in cannabis, investing, and market trends!