On June 16, 2020 Vext Science (VEXT.C) announced that its Kentucky J.V (Vapen Kentucky/Emerald Pointe Hemp) began production and sales of a full line of CBD products under the Pure Touch Botanicals and Vapen CBD brands.
Four months ago, Vext announced that Vapen-Kentucky has received its Certificate of Occupancy for the Hemp Processing Center located in Fulton, Kentucky.
At that time, Vapen-Kentucky begun processing hemp biomass supplied by Emerald Pointe at the new Fulton facility.
The Hemp Processing Center will produce high-quality, THC free CBD oil and isolate, which will be sold under the Vapen brand and supplied through VEXT’s wholesale distribution network.
Vext is a cannabinoid brand leader leveraging core expertise in extraction, manufacturing, cultivation, and marketing to build wholesale distribution through revenue and J.V.s
Hemp production is happening at a processing and extraction facility located in Fulton, Kentucky. Pur Isolabs will handle the distribution of VAPEN KY products.
The global shift away from tobacco usage is a positive for Vext’s Kentucky operations.
“During nearly the past two decades, overall global tobacco use has fallen, from 1.4 billion in 2000 to 1.3 billion or by approximately 60 million people,” states the WHO, “This has been largely driven by reductions in the number of females using these products (346 million in 2000 down to 244 million in 2018).
Kentucky agricultural observers anticipate that tobacco farmers will shift production into hemp – increasing the potential supply of biomass to Vext extraction facilities.
“Our Kentucky partnership with Emerald Pointe provides VEXT with access to high quality hemp biomass,” confirms Vext CEO Eric Offenberger, “Where we can deliver our unique and efficient processing and extraction technologies. We are confident that our extraction expertise, combined with Emerald Pointe’s farming experience in hemp and their Pur Isolabs sales relationships, will drive our success in the CBD market nationally and internationally”.
David Lavigne of Trickle Research has begun covering Vext with “independent, unpaid research”.
“The addition of Organica in Arizona, and the commencement of anticipated businesses in new markets are notable milestones [for Vext],” wrote Lavigne, “We expect additional starts in new markets through the balance of 2020.”
Lavigne is referring to Vext’s recent deal with the Organica Patient Group (OPG) in Arizona. Vext is providing exclusive turn-key services for the management, administration and operation of OPG – an Arizona not-for-profit corporation, which holds a Medical Marijuana Dispensary Registration Certificate.
Organica has been doing business in Arizona since 2013, with a retail dispensary in Chino Valley, AZ, and an offsite grow-op in Prescott Valley, Arizona.
Organica cultivates and produces medical marijuana and medical marijuana product which is sold and distributed on a retail and wholesale basis in Arizona.
Vext will be handling the management, administration and operation of its medical marijuana dispensary, cultivation, extraction, kitchen and infusion operations.
According to 2099 Weed Maps reviews (4.8/5 rating), Organica has a sizable clientele of predominantly satisfied customers.
“I love Organica ,they are very friendly, have best quality & pulled together to help me at the worst time of my life,” states byseizure (5/5), “They always have good quality, but need to get the firebrand 1-1 back in stock it literally stopped my seizures thanks to all their staff there [sic] awesome.”
While the path forward since our initiation has not been without some hitches, we believe VEXT is on the right trajectory, and we remain bullish in the prospects. We reiterate our 12-4 month target of USD $1.60 and we are raising our allocation from 4 to 5 based on the compression in the stock since the time of our initiation.”
– David Lavigne, Trickle Research.
Last week, Vext announced that it has entered into a JV with Green Goblin, of San Diego, to operate extraction, distillation and kitchen operations.
California’s legal cannabis industry is expected to grow again in 2020 with an estimated 300 new retail stores opening and over 5,400 licensed farmers, ensuring adequate supply.
“California is a large but extremely competitive market for THC products,” stated Offenberger, “Our J.V with Green Goblin provides us with an established platform to launch the Vapen, allowing us to enter new markets with low customer acquisition costs.”
“With a humble grow, an extraction lab, and a pair of Arizona dispensary outlets, and a solid group of products in multiple SKUs,” stated Equity Guru’s Chris Parry last summer, “Vext Science has managed to do what few before them have. You’ve got to appreciate the folks who can just mint money every month while so many others eat dirt.”
“Don’t get caught parking your money with the big guys,” warned Parry in July 2019, “As they struggle to contain their internal financial bleeding. Find the value. Find the real managers.”
– Lukas Kane
Full Disclosure: Vext Science is an Equity Guru marketing client.