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

Executive Summary

• Vencanna Ventures reported Q3 2025 results showing revenues of $414k (‑26% YoY) and a net loss of $383k, an improvement from the prior year but still material negative performance.
• The company entered into a definitive sale agreement to sell its 95 % membership interest in Vencanna NJ for $1.25 million cash plus a $135k deposit reimbursement and up‑to $250k earn‑out, with closing expected in H1 2026.
• Additional corporate updates include exiting the Cinnaminson, NJ lease without cost and re‑commencing its normal course issuer bid (NCIB) on April 1 2025 (no purchases made to date).

Key Details

• Financial Highlights (Q3 2025 vs Q3 2024):
• Revenues: $414k vs $560k (‑26%).
• Cost of sales: $520k vs $812k (‑36%).
• Gross profit (loss): $(106)k vs $(252)k (58% improvement).
• Net loss: $(383)k vs $(705)k.
• Three‑Month Comparative Results (Oct 31 2025 vs Oct 31 2024):
• Comprehensive loss: $399,528 vs $969,797.
• Interest expense on leases: $62,665 vs $117,417 (2024).
• Professional fees: $126,760 vs $272,078 (2024).
• Other income/expenses: $82,066 vs $10,353 (2024), driven by lease termination gain offset by leasehold‑improvement write‑off.
• Balance Sheet (as of Oct 31 2025):
• Total assets: $2.87 M (down from $4.97 M a year earlier).
• Total liabilities: $1.94 M (down from $3.64 M a year earlier).
• Share Capital:
• 12,330,554 warrants expired on Oct 31 2025.
• Outstanding securities: 222,644,952 common shares and 55,974,604 exchangeable shares (1‑for‑1 convertible to common).
• Normal Course Issuer Bid (NCIB): Re‑commenced April 1 2025; no purchases made during the period.
• Asset Sale Agreement – Vencanna NJ:
• Buyer: arm’s‑length purchaser (identified as “Purchaser”).
• Consideration: $1,250,000 cash + ~$135,000 deposit reimbursement + earn‑out up to $250,000.
• Closing: expected H1 2026, subject to municipal and state approvals.
• Lease Exit – TGC New Jersey LLC:
• Effective Oct 3 2025, lease in Cinnaminson, NJ terminated; Vencanna released from guarantee at no cost.
• Operational Update – Nevada:
• Tourism down 8% YoY; cannabis sales down 11% YoY to $609.3 M (state‑wide).
• Cannavative hired a dedicated Las Vegas sales representative to improve market access.

Notable Quotes

• “The sale of our Vencanna NJ interest and the exit from the Cinnaminson lease strategically monetize non‑core assets, allowing us to focus on higher‑growth opportunities while preserving capital for future initiatives,” – David McGorman, CEO & Director.