Vencanna Ventures Announces Interim Financial Results and Corporate Update for the Three Months ending July 31, 2025

Executive Summary

• Vencanna Ventures reported a comprehensive loss of $708,586 for the quarter ended July 31 2025, compared with a loss of $893,009 in the same period last year.
• Revenues declined 11.7% to $560k versus $634k YoY, while cost of sales fell 21.7% to $812k, narrowing the gross‑loss to $(252)k from $(403)k.
• Operating expenses dropped sharply to $453k (down from $1,054k YoY), driven by lower amortization, lease interest, professional fees and salaries/benefits.

Key Details

• Acquisition Background: On April 30 2024 Vencanna completed an all‑share acquisition of The Cannavative Group, shifting the company from a pure investment vehicle to an operating cannabis business.
• Nevada Operations Update: Cannabis sales in Nevada fell 13% YoY to $376.3 million; tourism down 7%. A new dedicated sales representative has been added in Las Vegas.
• New Jersey Expansion: Vencanna NJ LLC (95% owned) applied for a Class 5 retail license for a Bellmawr, NJ site and is partnering with TGC New Jersey LLC on a 15,500 sf cultivation/manufacturing facility in Cinnaminson, NJ. Financing options are under review.
• Quarterly Financial Summary (Q1 FY2026 vs Q4 FY2025):
• Revenues: $560 k vs $634 k (-11.7%)
• Cost of sales: $(812) k vs $(1,037) k (-21.7%)
• Gross profit (loss): $(252) k vs $(403) k (improved 37.5%)
• Operating expenses: $(453) k vs $(1,054) k (significant reduction)
• Net loss: $(705) k vs $(1,011) k
• Expense Drivers: Amortization expense fell to $45,200 (from $343,210); lease interest/acc. expense down to $81,420 (from $120,501); salaries & benefits $137,540 (down from $314,988); professional fees $71,775 (down from $121,340).
• Balance Sheet Highlights (as of July 31 2025):
• Total assets: $4.966 M (down from $5.611 M)
• Total liabilities: $3.636 M (slightly up from $3.572 M)
• Outstanding securities: 222,644,952 common shares; 55,974,604 exchangeable shares (1‑for‑1 convertible to common); 12,330,554 warrants.
• Normal Course Issuer Bid (NCIB): Re‑commenced on April 1 2025 with termination set for the earlier of April 1 2026 or when maximum purchasable shares are acquired; no purchases made during the quarter.

Notable Quotes

• David McGorman, CEO & Director: “While cannabis sales and tourism in Nevada have softened, we remain focused on operational efficiencies and expanding our footprint in high‑growth markets such as New Jersey.”