VIX Science(VEXTF), withdraws from Arizona and fully bets on Ohio… accelerating structural adjustments amid 41% revenue growth

American cannabis company Vext Science (VEXTF) is moving to withdraw production facilities in Arizona and expand its Ohio operations. At the same time, it is pushing ahead with efforts to improve profitability and implement its growth strategy. This move marks the official launch of its “select and focus” strategy, reducing unnecessary capital expenditures while concentrating on its core market in Ohio.

Vext Science announced that it will stop operations at its Eloy cultivation facility in Arizona and advance the sale of this asset. The company expects the move will save approximately $2.0 million in capital expenditures, and the proceeds from the sale will be used to repay mortgage debt. The company’s main equipment will be redeployed to the expansion project of its Jackson cultivation facility in Ohio, which is expected to improve adjusted EBITDA profit margins for its Arizona operations after the business adjustment, while also shortening the cash recovery cycle. The Eloy facility will be fully closed by the end of the second quarter of 2026.

In parallel, the company has obtained a temporary license for “medical and adult-use” retail sales points in the Columbus, Ohio area and is accelerating its retail expansion. The store’s total investment is $3.30 million, with operations targeted to begin in the fourth quarter of 2026. By then, Vext Science will have a seventh store in Ohio, moving one step closer to the maximum eight-store system allowed by the state government. The company is maximizing expansion efficiency based on the scale of its 25,000-square-foot Tier 1 cultivation facility and manufacturing infrastructure.

Improvements are also evident on the financial front. Revenue in the third quarter of 2025 reached $12.70 million, up 41% year over year. Year-to-date operating cash flow was $8.50 million, a significant improvement from the deficit in the same period last year. However, the adjusted EBITDA profit margin fell year over year to 16.7%, and it recorded a net loss of $2.62 million, meaning profitability has not fully recovered. The company expects that as inventory clearing continues, cash flow will improve further starting in the fourth quarter.

Previously, the third-quarter performance figures were revised in a filing to adjusted EBITDA of $1.625 million, with a profit margin of 12.8%. These are more conservative numbers than those in the initial announcement, resulting from a reworking undertaken to enhance financial transparency.

Expansion in the Ohio market has become a core pillar of earnings growth. Previously, Vext Science obtained its fifth vertically integrated store through the acquisition of the Herbal Wellness center in the Portsmouth area, and it currently operates a medical and adult-use complex store with drive-thru service. In addition, three more stores are under preparation and are expected to complete the “eight-store system” buildout within 2026.

On the other hand, at the end of 2025, major shareholder Jason T. Nguyen sold and converted some shares with voting rights, slightly reducing his ownership stake. The transaction value was $305,100, and the related funds were used to repay the company’s debt. His multiple-voting-rights ownership percentage decreased from 73.3% to 72.5%.

At the shareholders’ meeting, all proposals were approved with an overwhelming 97%+ affirmative vote rate, confirming the stability of corporate governance. The company plans to release its 2025 fourth-quarter and full-year results on April 23, 2026.

Industry commentary views Vext Science’s strategy as a typical restructuring case of “clearing non-core assets and focusing on high-growth markets.” In particular, the strengthening of its market position in Ohio is seen as a key variable that will affect the company’s long-term enterprise value.