August 18, 2025 – TheNewswire - Calgary, Alberta – Vencanna Ventures (the "Company" or "Vencanna") (CSE:VENI) is pleased to provide a summary of its financial results as of April 30, 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 twelve months and three months ended April 30, 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.  Cannavative operates out of Reno, NV, offering over 150 SKUs, spanning a wide range of high-quality concentrate product offerings and pre-rolls.  The transaction marked a transformative shift for the Company, from a purely investment entity to include U.S.-based cannabis operations.  

On October 6, 2022, President Biden pardoned all Federal offences of simple possession of cannabis.  In addition, the President instructed the Attorney General along with the US Department of Health and Human Services (HHS) to initiate an administrative process to review the scheduling of cannabis, which is currently classified as a Schedule I of the Controlled Substance Act.  On August 29, 2023 the HHS sent a letter to the U.S. Drug Enforcement Agency (DEA) recommending moving cannabis from a Schedule I to a Schedule III controlled substance and on April 30, 2024 the DEA released an unsigned recommendation agreeing with the HHS to move cannabis from a Schedule 1 to Schedule III. However, following the 60-day public comment period, which closed July 22, 2024, the DEA moved the decision of rescheduling to an Administrative Hearing.  The hearing was delayed due to the judge finding suspected tampering and bias from the DEA.  To date, no timing of when the Administrative Hearing will take place.  However, it was recently reported in the Wall Street Journal and CNN that President Trump told donors that he was “considering rescheduling marijuana”, and in a press conference on August 12, 2025 he said a decision would in the “next few weeks”.  While these are very positive comments, there is no assurances as to the actual timing of rescheduling, or if cannabis will actually be reclassified as a Schedule III controlled substance.  

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.  

 

Nevada

During the fiscal year, Cannavative focused on streamlining its operations emphasising manufacturing and distribution.   Significant strides have been made in the Company’s cost saving measures, including a reduction in headcount, improved transportation logistics, lower supply costs, the eliminating of redundant administrative costs, and on February 1, 2025 the Company relocated from it’s 40,000 sq.ft. Lear facility to a new 7,500 sq.ft. facility that better reflects the company’s needs at much-reduced carrying costs.  

While tourism in 2024 rebounded to pre-Covid level, according to the LVCVA Research Centre tourism has been dropping in 2025, falling 11% in June 2025 compared to the previous year.  Cannavative must continue to focus on its diverse high quality product offerings and cost and operating efficiencies, in order to compete in what continues to be a challenging market.

New Jersey

The Company partnered with certain community groups with a focus on the New Jersey cannabis market: TGC New Jersey LLC. ("TGC"), CGT New Jersey LLC ("CGT"), and October Gold LLC ("October Gold," collectively referred to as the "NJ Entities").  As of April 30, 2024 Vencanna has consolidated the NJ Entities on the Company’s financial statements.  

CGT has secured a 4,150-square foot retail site in Bellmawr, NJ.  Construction has commenced with the exterior construction mostly complete, and the company is in the process of submitting its permits for the interior construction.  The Bellmawr site is less than 10 miles from Philadelphia just off Hwy 42 southbound, with over 85,000 southbound cars passing the dispensary every day. CGT has assigned all its rights regarding the Bellmawr site to the Company.  The Company has submitted an annual Class 5 retail application, with its annual retail license pending final regulatory review.  

TGC has secured a 15,500-square foot multi-licensed site in Cinnaminson, NJ.  The vertical licenced site (allows retail sales, cultivation and manufacturing) has all the requisite municipal approvals to initiate development.  TGC has received its annual cultivation and manufacturing license, and its annual retail license is pending final regulatory review.  

The Company is reviewing numerous options to finance the construction of its Bellmawr and Cinnaminson sites, including using cash on hand, free cash flow from future operations, the sale of certain assets, and/or the issuance of debt.  While the Company is hopeful that it will be successful in securing additional capital to develop its NJ assets, new capital for the cannabis industry is still a challenge and there is no assurance the Company will be successful.  

 

Financial Highlights

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

Quarter ended (000’s)	Apr 30, 2025 ($)	Jan 31, 2025 ($)	Oct 31, 2024 ($)	Jul 31, 2024 ($)	Apr 30, 2024 ($)	Jan 31, 2024 ($)	Oct 31, 2023 ($)	Jul 30, 2023 ($)
Revenues	634	965	1,160	1,254	-	-	-	-
Cost of Sales	(1,037)	(559)	(862)	(1,168)	-	-	-	-
Gross Profit	(403)	406	298	86	-	-	-	-
Expenses	(71)	(806)	(1,065)	(1,054)	(415)	(347)	(311)	(210)
Other income and (expenses)	(469)	(1,410)	10	12	273	82	175	57
Net gain (loss)	(1,011)	(1,810)	(757)	(956)	(142)	(266)	(135)	(153)
Comprehensive gain (loss)	(968)	(1,724)	(970)	(793)	(423)	(112)	(178)	11
Total assets	5,611	6,629	9,933	10,856	11,559	7,676	7,769	6,540
Total liabilities	3,572	3,622	5,302	5,155	5,065	3,670	3,564	2,031

 

Financial results for the three months ended April 30, 2025 and 2024

Revenues for the period ended April 30, 2025, were $633,704 and the Cost of Sales was $1,036,568 during the period generating a gross profit of ($402,864) resulting in a negative gross profit margin for the quarter of 64%. The Company recorded a comprehensive loss of $968,295, $0.01 per common share for the period ended April 30, 2025 as compared to a loss of $423,383, $0.00 per share for the period ended April 30, 2024.

During the recent quarter, cost of sales increased and expenses decreased relative to prior quarters, as the Company allocated certain portion of expenses relating to amortization, property taxes and utilities, and salaries, benefits and bonuses to cost of sales resulting in “Cost of Sales” in the quarter ended April 30, 2025 of $1,036,568 compared to $558,908 in the quarter ending January 31, 2025, and “Expenses” in the quarter ended April 30, 2025 of $71,009 compared to $806,360 in the quarter ending January 31, 2025.

Interest and bank charges decreased to $2,666 (2024 - $41,275) due to the cancellation of the convertible debenture on April 30, 2024.  Interest expenses related to leases was $79,238 (2024 - $59,142), and office and miscellaneous expenses increased to $164,047 (2024 - $32,422) due to the addition of Cannavative operations.  Professional fees decreased to $126,760 (2024 - $137,707) and office, travel and other miscellaneous expenses were $1,899 (2024 - $48,303).

Other income and (expenses) decreased to $(469,329) (2024 - $273,490) due to the drop in Interest income to $1,801 (2024 – $58,300) related to $Nil interest on the Cannavative note, the write-off of goodwill, intangible assets and investments of $560,036 (2024 - $64,599), and the drop in unrealized foreign exchange gain to $8 (2024 - $13,216).  Due to the settlement of the convertible debenture, the derivative liability during the period was $Nil (2024 – gain of $311,989), and the gain (loss) at settlement was $Nil (2024 - $9,662).    

The Net income (loss) for the period was ($1,010,202) (2024 - $(141,962)).  After adjustments the Company had a Comprehensive loss of $968,295 (2024 - $423,383).

 

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 offers over 150 SKUs, spanning a wide range of high-quality concentrate product offerings and pre-rolls.  These highly recognized products including Resin8, one of Nevada’s top selling vape, The Motivator, the OG of the honeycomb infused pre-roll, Tidal, a high-quality live resin sugar concentrate, and multiple other offerings covering capsules, gummies, including Rick Simpson Oil (RSO).  

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.