Accelerating Free Cash Flow C Maximizing Shareholder Value
October 21, 2025
Unless otherwise stated, all references to currency in this Presentation are in U.S. Dollars
CSE: VEXT | OTCQX: VEXTF
Brands in Cannabis: Overhyped, Underpowered
72%consumers choose products based on THC potency(1)
64%consumers identify price as a key factor in their product choice (1)
69%consumers do not have a brand preference (1)
18%consumers report that brands influence purchase decision(2)
New Frontier Data
BDSA, Hifyre and Deloitte
Retail drives consumer choice, not brands.
No Soil = No Roots
Structural barriers prevent cannabis brands from achieving long-term success.
No national advertising
No product standards
State-by-state regulations
Fragmented markets
Lack of product differentiation
Price competition Limited marketing
In 2024, flower accounted for 40% of all retail sales,the top-selling product category in the industry.
Top Flower Brands by State
Michigan Massachusetts Nevada California Arizona
2022 - 2024:
2022
2023
2024
#1:
In-house brand
#1:
In-house brand
#1:
In-house brand
#1:
In-house brand
#1:
In-house brand
#1:
In-house brand
#1:
In-house brand
#1:
In-house brand
#1:
In-house brand
#1:
In-house brand
#1:
In-house brand
#1:
In-house brand
#1:
In-house brand
#1:
In-house brand
#1:
In-house brand
The #1 flower brand in most
U.S. states:
IN-HOUSE BRANDS
Source: Headset
House brands and brands backed by retail consistently outperform across markets
Celebrity brands are not top performers
Brands backed by retail footprints are strategically positioned for sustained success
Brand leadership is temporary, and market share is constantly shifting
Owning stores and prioritizing retail excellence creates the most reliable value in the cannabis industry.
Based on Headset data and Vext internal research
Retail is King: Control the Shelf, Control the Market
Built-in Advertising
Owning retail locations
provides direct
consumer exposure.
Pricing Power
Retailers control product mix and pricing to maximize margins.
Private-Label
Outshine Brands
Like grocery stores, private labels outperform branded products by leveraging control of shelf assortment.
Distribution is King
In a space where marketing can't be done at scale, distribution reigns supreme.
Vext's Winning Formula
Retail-First
+
"Right-Scaled"
Vertical Integration within Key States
=
Cash Flow Machine
Retail
Doors
Sustainable margin/ control over destiny
Initial surge in demand
- Retail struggles to secure consistent supply
Growth in of stores -
customer catchment area of individual locations begins to compress
Margins controlled
by focusing on products produced internally & sold locally
Learnings from Arizona: Vertical Integration Wins and Owned Retail is King
1. EARLY GROWTH PHASE - YEARS
2. EARLY ADULT-USE - YEARS
3. MATURITY
Wholesale
Cultivation
High initial margins decline precipitously
Demand > Supply
Wholesale pricing strong
Demand = Supply
Cultivators expand operations
Demand < Supply
Pricing becomes key differentiator
Brands
Landscape fragments -
loyalty is expensive to buy
Brands look like they
are winning
Proliferation of
brands, very few consistent leaders
Brands pushed for margin,
retail store setting terms &
store "brands" dominate
fi E Y
L E A R N I N G S
Cultivation control ensures consistent supply and quality
Efficiency at the manufacturing level allows for innovation and margin control
Retail strength maximizes profitability
The Power of Vertical Integration: Maximizing Value C Growth
In-House Cultivation
Scalable, cost-efficient supply
Zero waste, demand-driven production
In-House Manufacturing
Agile product mix,
trend-responsive
Lower costs, better margins
Retail Operations
Low-cost, high-value
offerings
Optimized pricing & margins
Customer Experience
Higher quality,
lower prices
Loyalty & traffic growth
Reinvest Reinvest
Reinvest
Intelligent Reinvestment
Demand-driven growth
Cash Flow
Generated Value Management
Shareholder Returns
Debt Paydown
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Disclaimer
Vext Science Inc. published this content on October 21, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on October 21, 2025 at 20:54 UTC.
