Voting for an Ohio adult-use proposal has already begun.
Vext Science (CSE: VEXT) (OTCQX: VEXTF) announced an agreement Monday to purchase two Ohio-based cannabis dispensaries from Big Perm’s Dispensary Ohio, LLC. The deal, valued at approximately $9.4 million, is slated to close in 2024.
Under the accord, the Vancouver-based company will make a cash payment, which may be adjusted based on certain conditions like construction expenses. Vext has committed to funding about $3.4 million of construction costs related to the dispensaries upon closure of the deal.
Eric Offenberger, Vext’s CEO, has called the company’s move this year to acquire the dispensaries as “a critical step toward achieving scale” in Ohio.
Additionally, the company plans to extend up to $3 million in loans to Big Perm for capital expenditures and operational needs. The deal depends on regulatory approval by the Ohio Board of Pharmacy and other standard preconditions.
Ohio sprees
The purchase is another added link to a chain of Ohio acquisitions that the company has been building up. Other companies have been trying to stick their foot in the door in order to capitalize on what is believed to be a market brimmed with pent-up demand. Ohio State University report projects annual tax revenue of $257 million to $400 million for the state if marijuana is legalized for recreational use.
For now, the state’s limited medical market reels with a glut of product alongside prices that reflect such oversupply, but early voting for an adult-use ballot question has already begun.
The proposed measure aims to legalize recreational cannabis for Ohio adults 21 and older, allowing possession of up to 2.5 ounces and 15 grams of concentrates. The measure also permits home cultivation — up to six plants per adult, with a 12-plant maximum for households with multiple adults.
Revenue from a 10% sales tax, as outlined in Issue 2, would be allocated as follows: 36% for social equity and jobs programs, 36% to cannabis-friendly towns, 25% to education and substance abuse initiatives, and 3% for administrative costs. The legislation also proposes a new Division of Cannabis Control within the State Department of Commerce.
Existing medical cannabis licensees would have an edge in the recreational market, with the bill mandating new licenses for them within nine months post-enactment. The division would also prioritize issuing 40 recreational grower licenses and 50 retailer licenses, favoring applicants from its cannabis social equity and jobs program.
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