Vext Science (VEXT) investor relations material

Industry dynamics and consumer trends

• Most cannabis consumers prioritize THC potency and price over brand, with 69% lacking brand preference and only 18% influenced by brands.

• Retail presence, not branding, drives consumer choice, as in-house brands consistently outperform across states.

• Structural barriers such as fragmented regulations, lack of national advertising, and limited product differentiation hinder long-term brand success.

• Retailers with private-label products and control over shelf space gain pricing power and distribution advantages.

Strategic approach and operational model

• Focus on a retail-first, right-scaled footprint in key states, prioritizing cash flow generation.

• Demand-driven supply strategy: produce in-house where cost/quality advantages exist, source externally when more economical.

• Exited Arizona cultivation to optimize asset returns, redeploy capital, and improve cash contribution.

• Vertically integrated operations in Ohio, with scalable cultivation and manufacturing supporting retail expansion.

Market performance and growth

• Arizona operations outperformed state averages despite market decline, aided by strategic asset sales and retail focus.

• Ohio retail footprint expanded from 2 to 5 dispensaries in 2025, with plans to reach 8 by early 2027.

• Ohio sales grew 120% YoY in 2025, outpacing statewide dispensary growth.

• Anticipates substantial free cash flow growth in 2026 and 2027 as Ohio operations scale and Arizona is optimized.