Vencanna Ventures Announces Agreement to Divest of Vencanna NJ LLC

Executive Summary

• Vencanna Ventures Inc. entered into a definitive sale agreement to divest its 95% membership interest in Vencanna NJ LLC for total consideration of up to $1,500,000 (cash, reimbursement, promissory note, and earnout).
• The transaction is expected to close within 90‑120 days, subject to municipal and state approvals.
• As of October 3 2025, TGC New Jersey LLC exited its lease in Cinnaminson, NJ, releasing Vencanna from the lease guarantee and reducing future financial obligations.

Key Details

• Purchase Price: $1,250,000 cash payable at closing plus a reimbursement of approximately $135,000 for prior deposits.
• Earnout: Up to $250,000 based on 10% of net revenues exceeding $7.5 M during the highest‑grossing consecutive 12‑month period within the first 18 months of operations (capped at $250,000).
• Promissory Note: $250,000 note due six (6) months after closing.
• Closing Timeline: Expected within 90–120 days, contingent on customary closing conditions and required municipal/state approvals.
• Use of Proceeds: Net proceeds will be added to cash on hand for general working capital; no specific allocation disclosed.
• Lease Exit: TGC New Jersey LLC terminated its lease in Cinnaminson, NJ; Vencanna released from guarantee with no further cost, materially reducing ongoing obligations.
• Transaction Costs: Each party bears its own transaction expenses.

Notable Quotes

(No direct quotes were provided in the release.)