Vext Science, the owner of the Herbal Wellness Center dispensary in Jackson, has reached a deal to spread out debt from its 2023 Ohio acquisitions, the company announced on Sept. 17.
The debt
The notes were issued when Vext bought Appalachian Pharm Products, LLC and APP1803, LLC in 2023. According to the company, they had an original principal of about $6.0 million and were scheduled to mature on Dec. 31, 2026, with a balloon payment of about $5.6 million. All figures are in U.S. dollars.
The new terms
Under the restructuring, as described by Vext:
- About $2.4 million will be paid in cash on the first business day of January 2027. That retires four noteholders in full and covers scheduled payments and principal prepayments to the others.
- The remaining notes, about $3.2 million in principal, will be cancelled and replaced with new notes issued by Vext’s subsidiary, Vapen Ohio, LLC.
- The new notes carry interest of 8.0% a year through Dec. 31, 2026, and 10.0% a year from Jan. 1, 2027.
- They will be paid off in equal monthly payments of about $147,000, starting Feb. 15, 2027, with a final payment on Jan. 15, 2029.
Vext said the restructuring is expected to take effect on Oct. 1, 2026, provided certain conditions are met, including the company making its next scheduled quarterly payment on the existing notes.
What the company says
“Rather than refinancing with third-party debt, we worked directly with our noteholders to cut the year-end obligation by more than half and convert the balance into a short, fully amortizing schedule we can retire early as cash flow allows,” chief executive Eric Offenberger said in the announcement.
Context
The announcement came the same day Vext reopened its Jackson dispensary after a state investigation. Read our story: Jackson dispensary reopens after state tests find no contaminants in vape cartridges.
Vext describes itself as a U.S.-based specialty retailer in the regulated cannabis markets of Ohio and Arizona. Its shares trade on the Canadian Securities Exchange under the symbol VEXT.
This story is based on the company’s own announcement. Statements about future payments are the company’s plans and have not happened yet.
Sources
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