Vencanna Announces Interim Financial Results and Corporate Update for the Three- and Nine-Months ending January 31, 2026

Executive Summary

• Vencanna Ventures reported Q3‑FY2026 financial results (three months ended Jan 31, 2026) showing revenue of $418k and a net loss of $285k, an improvement over the prior year’s loss of $1.81 M.
• The company announced a definitive agreement to sell its 95% interest in Vencanna NJ LLC for $1.25 M cash plus a $135 k deposit reimbursement and up‑to $250 k earn‑out, with closing expected in H1 2026.
• Cost reductions were highlighted, with expenses down 13% YoY and gross profit moving from a $106 k loss to a $34 k loss versus the prior quarter.

Key Details

• Financial Highlights (Q3 FY2026 vs Q2 FY2026):
• Revenue: $418 k (flat vs $414 k).
• Cost of sales: $(451) k (13% decline).
• Gross profit/loss: $(34) k (improved from $(106) k).
• Expenses: $(252) k (21% decline).

• Net loss: $(285) k (down from $(383) k).

• Three‑Month Comparative Results:

• Comprehensive loss of $266,868 for Jan 31 2026 vs. $1,723,647 loss for Jan 31 2025.

• Expense reduction of $554,612 driven by lower amortization/depreciation ($227,469), marketing ($32,665), office fees ($25,394), professional fees ($53,260), salaries/benefits ($104,613) and lease‑related interest ($93,425).

• Balance Sheet (as of Jan 31 2026):

• Total assets: $2.786 M.

• Total liabilities: $2.122 M.

• Share Capital: 222,644,952 common shares outstanding; 55,974,604 exchangeable shares (1‑for‑1 convertible to common). No warrants or options issued.

• Asset Sale Agreement – Vencanna NJ LLC:

• Seller: Vencanna Ventures (95% membership interest).
• Purchase price: $1,250,000 cash + approx. $135,000 deposit reimbursement + earn‑out up to $250,000.

• Expected closing: First half of 2026, subject to municipal and state approvals.

• Operational Context:

• Nevada cannabis market facing declining tourism (‑7.5% YoY in 2025) and cannabis sales (‑11% YoY).

• Company focusing on cost management; Cannavative maintains operations despite market headwinds.

• Normal Course Issuer Bid (NCIB): Re‑commenced Apr 1 2025, to terminate by Apr 1 2026 or when maximum shares purchased; no purchases made in the current period.

• Regulatory Update: U.S. executive order (Dec 18 2025) directs expedited rescheduling of cannabis from Schedule I to III, potentially reducing tax burden under IRC 280E for compliant businesses.

Notable Quotes

“While New Jersey is an attractive state to operate, new capital for the cannabis industry continued to be challenging and the Company made the strategic decision to monetize its interests thereby relieving the Company of its obligations and future expenditures.” – David McGorman, CEO & Director, Vencanna Ventures Inc.