April 1, 2025 – TheNewswire - Calgary, Alberta –Vencanna Ventures (the "Company" or "Vencanna") (CSE:VENI) is pleased to provide a summary of its financial results as of January 31, 2025.  Selected financial information is outlined below and should be read in conjunction with the Company's financial statements and management's discussion and analysis for the three months ended January 31, 2025, which are available on SEDAR+ at www.sedarplus.ca.  All financial measures are expressed in U.S. dollars unless otherwise indicated.  

On April 30, 2024 the Company acquired The Cannavative Group (“Cannavative”) in an all-share transaction.  The transaction marks a transformative shift for the Company, from a purely investment entity to include U.S.-based cannabis operations.  

The Company derives the majority of its income from the cannabis industry in certain states in the United States, which is illegal under the federal laws of the United States.  However, the Company is not aware of any non-compliance by the Company, or its investees, or The Cannavative Group, that would be contrary, or illegal, under applicable state laws.  

 

Corporate Update

During the current fiscal year, the focus in Nevada has been on operating efficiencies, cost reductions, and corporate rightsizing including moving into a new facility.  Prior to Feb 1, 2025, Cannavative operated its cultivation and extraction business out of the 40,000 square-foot facility.  Given the extremely completive pricing in the flower market, Cannavative’s dialed its focus towards its top selling manufactured, pre-roll, and infused pre-roll products making the size of its facility redundant for the company’s needs.  Cannavative exited its previous lease on January 31, 2025 without any further financial obligation, and on Feb 1, 2025, the Company commenced operations in its new 7,500 square-foot facility at significantly reduced carrying costs.  

In the state of New Jersey, the Company has partnered with certain community groups including TGC New Jersey LLC’s ("TGC") and CGT New Jersey LLC ("CGT").  TGC has secured at 15,500 sf site in Cinnaminson NJ, allowing cultivation, manufacturing and retail, and CGT has secured a 4,150 square-foot retail site in Bellmawr NJ.  The outdoor construction at Bellmawr is mostly complete, and the Company is ready to initiate the interior construction.  The Bellmawr site is less than 10 miles from Philadelphia just off Hwy 42 southbound, with over 85,000 cars passing the dispensary every day.  With easy access on and off Hwy 42, this is a highly coveted and prominently located site.   The Company intends to initiate construction in Cinnaminson once Bellmawr construction has been complete and is operating.  

 

Financial Highlights

Fiscal 2025 Q3 to Q2 Operating Summary

• Revenues of $965k as compared to $1,160k, a decrease of 16.8% 

• Cost of sales of $559k as compared to $862k, a decrease of 35% 

• Gross Profit of $406k as compared to $298k, an increase of 36% 

  

The following financial data is selected information for the Company for the nine most recently completed financial quarters:

 

Quarter ended (000’s)	Jan 31, 2025 ($)	Oct 31, 2024 ($)	Jul 31, 2024 ($)	Apr 30, 2024 ($)	Jan 31, 2024 ($)	Oct 31, 2023 ($)	Jul 31, 2023 ($)	Apr 30, 2023 ($)
Revenues	965	1,160	1,254	-	-	-	-	-
Cost of sales	(559)	(862)	(1,168)	-	-	-	-	-
Gross profit	406	298	86	-	-	-	-	-
Expenses	(806)	(1,065)	(1,053)	(415)	(347)	(311)	(210)	(344)
Other income and (expenses)	(1,410)	10	12	273	82	175	57	(81)
Net income (loss)	(1,810)	(757)	(956)	(142)	(266)	(135)	(153)	(425)
Comprehensive income (loss)	(1,724)	(970)	(793)	(423)	(112)	(178)	11	(366)
Total assets	6,629	9,933	10,856	11,559	7,676	7,769	6,540	6,643
Total liabilities	3,622	5,302	5,155	5,065	3,670	3,564	2,031	2,077

  

Financial results for the three months ended October 31, 2024 and 2023

The Company recorded a comprehensive loss of $1,723,647, $0.01 per common share for the three months ended January 31, 2025, as compared to a comprehensive loss of $519,527, $0.00 per share for the three months ended January 31, 2024.

Expenses for the period ended January 31, 2025, were $806,360 (2024 - $326,741), the majority of the increase being related to the acquisition cost, and inclusion, of Cannavative.  Included in Expenses were amortization and interest expense for the period which amounted to $241,348 and $2,813 respectively.  

Other income and (expenses) of ($1,410,352) (2024 - $14,047) was primarily due to the loss on property and equipment which totalled $1,414,262 (2024 - $Nil) related to Cannavative moving to its new facility and the disposal of its leasehold improvements.

The Net loss for the period was $1,810,901 (2024 - $340,788).  After adjustments the Company had a Comprehensive loss of $1,723,647 (2024 - $519,527).

As of date hereof, the Company’s outstanding securities consists of 222,644,952 common shares, 55,974,604 exchangeable shares (“Exchangeable Shares”), and 33,011,355 warrants.  The Exchangeable Shares, issued under the acquisition of Cannavative, are exchangeable on a one-for-one basis into an equal number of common shares of the Company.

 

Normal Course Issuer Bid

The Company announces the re-commencement today of a normal course issuer bid ("NCIB"). The previous NCIB expired on February 23, 2025. During the prior NCIB, the Company did not purchase any common shares (“Shares”).

 

Under the new NCIB, the Company may purchase up to 5% of the Company's Shares. The NCIB commenced today and will terminate on the earlier of April 1, 2026 and the date on which the maximum number of Shares that can be acquired pursuant to the Bid have been purchased. The Company reserves the right to revoke the NCIB earlier if it determines that it is appropriate to do so. The actual number of Shares that may be purchased under the NCIB and the timing of any such purchases will be determined by the Company.

 

Vencanna is executing the NCIB because it believes that, from time to time, the market price of its Shares does not reflect the underlying value of the Company and its prospects, and that depending on the trading price of its Shares and other relevant factors, purchasing its own Shares represents an attractive investment opportunity and is in the best interests of the Company and its shareholders. All Shares will be purchased under the NCIB on the open market and through the facilities of the CSE and payment for the Shares will be made in accordance with CSE policies. The timing and extent of repurchases will depend upon several factors, including market and business conditions, valuation of Shares, regulatory requirements and other corporate considerations. The price paid for Shares will be the prevailing market price at the time of purchase and all Shares acquired by the Company will be cancelled. The Company has 222,644,952 181,283,390 Shares issued and outstanding as of today's date. Purchases may be suspended at any time, and no purchases will be made other than by means of open market transactions during the term of the NCIB. The Company has engaged Independent Trading Group (ITG) Inc. to act as the broker through which the Bid will be conducted.

 

About Vencanna

On September 24, 2018, the Company completed a recapitalization financing, appointed a new management team and board of directors, and commenced trading on the CSE as an investment issuer. The transactions transitioned the Company from an oil and gas issuer to a merchant capital firm, and rebranded as "Vencanna Ventures".

On April 30, 2024 Vencanna acquired Cannavative, a cultivation and extraction company in the state of Nevada.  Cannavative was established in 2016, and began operations in 2017.  The acquisition of Cannavative transitioned the Company from a merchant capital firm to an operating company.  Cannavative operates out of a 7,500 square-foot facility and offers over 150 SKUs, spanning a wide range of high-quality concentrate and pre-roll product offerings.  

Vencanna is dedicated to offering investors a diversified, high-growth cannabis investment strategy, with a particular focus in the Unities States of America.  It proposes to achieve this through strategic investments, grass roots developments, and acquisitions spanning the cannabis value chain.

 

For further information regarding this news release, please contact:

 

Vencanna Ventures Inc.

David McGorman

Chief Executive Officer and Director

 

info@vencanna.com

   

Reader Advisories

Neither the CSE nor the Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this news release.

Forward-Looking Statements

This news release may include "forward-looking statements" which reflect the Company's current expectations regarding the future results of operations, performance and achievements of the Company, including but not limited to: the business plan of the Company and Cannavative; the anticipated benefits of the acquisition of Cannavative; the market for medical and recreational cannabis in the United States; the state of the cannabis market and U.S. regulatory changes in respect thereof; and expectations regarding the business plans of such companies. When used in this news release, the words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by the Company, including expectations and assumptions concerning: the acquisition of Cannavative, including the impact of increasing competition; timing and amount of capital expenditures; the legislative and regulatory environments of the jurisdictions where the Company will carry on business, have operations or plan to have operations; the ability of the Company to enter into contracts with companies to provide financing on acceptable terms; conditions in general economic and financial markets; the ability of the Company's investments to execute on their business plan; and the Company's ability to obtain additional financing on satisfactory terms or at all. Forward-looking statements are subject to a wide range of risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized.

Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to, changes to global cannabis laws, how the developing U.S. legal regime will impact the cannabis industry, the ability of the Company to implement its corporate strategy, the state of domestic and international capital markets, the ability to obtain financing, changes in general market conditions and other factors more fully described from time to time in the reports and filings made by the Company with securities regulatory authorities. Except as required by applicable laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statements.