• The Week’s Largest Closed Equity Deal
  • On October 12, 2023, Vext Sciences (VEXT: CSE)(VEXTF: OTCQX), an MSO with operations in Arizona and Ohio, closed an oversubscribed private placement of 67.6M common shares at $0.17 for total gross proceeds of $11.5M, including the full exercise of the over-allotment option.
  • The transaction increased the share count by 45% and was priced at a 26% discount to pre-announcement levels.
  • The deal implies a $37M market cap, a $57M EV, and an EV/2023 Rev and EV/2023 EBITDA of 1.41x and 5.21x, respectively, bracketing the medians of 1.14x and 5.62x respectively, for the seventeen U.S. cultivation and retail companies in the Viridian Value Tracker database with market caps between $20M and $200M.
  • Vext is a solid company that ranks seventh out of twenty-seven on the Viridian Credit Tracker credit scoring model. The company enjoys good liquidity, modest leverage, and positive operating cash flow.
  • Proceeds will fund part of the purchase price for the Ohio Expansion Transaction, which adds two dispensaries to Vext’s Ohio assets.
  • Ohio is poised to vote on recreational cannabis in the November 2023 election. Vext’s recent acquisitions provide the company with a meaningful footprint that includes a Tier 1 cultivation facility, a manufacturing facility, and four retail dispensaries.

Public vs. Private Raises: 

• Vext Science (VEXT: CSE)(VEXTF: OTCQX) was the only public company that raised capital this week.

Equity vs. Debt Cap Raises: 

• Equity accounted for 100% of the week’s capital raised.