Vencanna Ventures Announces Interim Financial Results and Corporate Update for the Three and Six Months ending October 31, 2025

(TheNewswire)

December 30, 2025 – TheNewswire- Calgary, Alberta –Vencanna Ventures(the "Company" or"Vencanna") (CSE:VENI) is pleased toprovide a summary of its financial results as of October 31, 2025. Selected financial information is outlined below and should be readin conjunction with the Company's financial statements andmanagement's discussion and analysis for the three and six monthsended October 31, 2025, which are available on SEDAR+ atwww.sedarplus.ca.  All financial measures are expressed in U.S.dollars unless otherwise indicated.  

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

On December 18, 2025 President Trump signed anexecutive order to directing U.S. Attorney General Pam Bondi (the“AG”) to expedite the rescheduling of cannabis from a Schedule Idrug to a Schedule III drug.  Rescheduling to Schedule III does notlegalize the production and sale of cannabis, but it does eliminatethe application of IRC 280E, which will significantly reduce the taxburden and increase cash flows for U.S. state compliant cannabisbusinesses.  The executive order does not automatically reschedulecannabis, but it does direct the AG to complete the ”rulemakingprocess” “in the most expeditious manner in accordance withFederal law”.  Even though a significant majority of the commentssupport rescheduling, that research continues to support cannabis’medical benefits along with a lower risk of abuse, and thePresident’s executive order to reschedule cannabis, the timing ofactual cannabis reform, including the Secure and Fair Enforcement(SAFE) Banking Act, still challenged by regulatory hurdles, politics,potential lawsuits, and implementation logistics.  

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

Corporate Update

In Nevada, the Company continues to focus on operatingefficiencies and cost management as tourism and cannabis sales in 2025have been declining in the state.  For the first nine months endingOctober 31, 2025, tourism is down 8% year over year (as per the LVCVAResearch Centre), and according to the State of Nevada Department ofTaxation, that while cannabis sales over this period reached $609.3million, its an 11% drop from the same period the year prior.  Inlight of Nevada’s competitive environment, Cannavative has recentlyonboarded a dedicated sales representative stationed in Las Vegas. This grass roots initiative will give direct access to a majority ofthe buyers and customers alike.  

Subsequent to quarter end, on November 27, 2025 theCompany announced that it had entered into a definitive sale agreementwith an arm’s length purchaser (the “Purchaser”) to sell its 95%membership interest in Vencanna NJ.  Vencanna NJ is in the process ofobtaining its annual Class 5 Retail license operating out of theBellmawr site.  Under the terms of the agreement, the totalconsideration payable by the Purchaser to Vencanna for its membershipinterest in Vencanna NJ is $1,250,000, plus cash reimbursement ofcertain deposits amounting to approximately $135,000 (the“Reimbursement”), plus an earnout of up to $250,000.  Thetransaction is expected to close in the first half of 2026, subject tocustomary closing conditions, including municipal and state approval. 

The Company also announced that, as of October 3, 2025,TGC New Jersey LLC’s ("TGC") has exited its lease inCinnaminson NJ, and that the Company has been released of itsguarantee of the lease at no further costs. Upon the sale of Vencanna NJ and exiting the Cinnaminson lease,Vencanna will have fully exited its New Jersey endeavours.  While NewJersey is an attractive state to operate, new capital for the cannabisindustry has continued to be a challenge and the Company made thestrategic decision to monetize its interests thereby relieving theCompany of its obligations and future expenditures.  

Financial Highlights

Fiscal 2026 Q2 to 2026 Q1 Operating Summary:

• Revenues fell to $414k as compared to $560k, a decreaseof 26%; 

• Cost of sales dropped to $520k as compared to $812k, adecrease of 36% due to continued cost saving measures and decliningsales; and 

• Gross Profit of negative $106k as compared to negative$252k, a 58% improvement. 

The following financial data is selected informationfor the Company for the eight most recently completed financialquarters:

Financial results for the threemonths ended October 31, 2025 and October 31, 2024

The Company recorded a comprehensive loss of $399,528,$0.00 per common share for the three months ended October 31, 2025 ascompared to a loss of $969,797, $0.00 per share for the three monthsended October 31, 2024.

Interest expenses related to leases was $62,665 (2024 -$117,417). Professional fees decreased to $126,760 (2024 -$272,078).

Other income and (expenses) increased to $82,066 (2024- $10,353) due to the gain upon termination of one of the leasesduring the quarter which was slightly offset on the loss on thewrite-off of leasehold improvements related to the property in thelease terminated.

The net loss for the period was $382,992 (2024 -$756,848).  The Company had a comprehensive loss of $399,528 (2024 -$969,797).

Share Capital

On October 31, 2025, 12,330,554 warrants expired.  Asof date hereof, the Company’s outstanding securities consists of222,644,952 common shares, 55,974,604 exchangeable shares(“Exchangeable Shares”), no warrants and no options.  TheExchangeable Shares, issued under the acquisition of Cannavative, areexchangeable on a one-for-one basis into an equal number of commonshares of the Company.

Normal Course Issuer Bid

On April 1, 2025 the Company announces there-commencement of its normal course issuer bid ("NCIB") and willterminate on the earlier of April 1, 2026 and the date on which themaximum number of Shares that can be acquired pursuant to the Bid havebeen purchased. During the current period, the Company did notpurchase any common shares (“Shares”).

About Vencanna

On September 24, 2018, the Company completed arecapitalization financing, appointed a new management team and boardof directors, and commenced trading on the CSE as an investmentissuer. The transactions transitioned the Company from an oil and gasissuer to a merchant capital firm, and rebranded as "VencannaVentures".

On April 30, 2024 Vencanna acquired Cannavative, acultivation 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 amerchant capital firm to an operating company.  Cannavativeoperates out of a 7,500 square-foot facility and offers over 150 SKUs,spanning a wide range of high-quality concentrate and pre-roll productofferings.  

Vencanna is dedicated to offering investors adiversified, high-growth cannabis investment strategy, with aparticular focus in the Unities States of America.  It proposes toachieve 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 CSEnor the Market Regulator (as that term is defined in the policies ofthe CSE) accepts responsibility for the adequacy or accuracy of thisnews release.

Forward-Looking Statements

This news release may include "forward-lookingstatements" which reflect the Company's current expectationsregarding the future results of operations, performance andachievements of the Company, including but not limited to: thebusiness plan of the Company and Cannavative; the anticipated benefitsof the acquisition of Cannavative; the market for medical andrecreational cannabis in the United States; the state of the cannabismarket and U.S. regulatory changes in respect thereof; andexpectations regarding the business plans of such companies. When usedin this news release, the words "will,""anticipate," "believe," "estimate,""expect," "intent," "may,""project," "should," and similar expressions areintended to be among the statements that identify forward-lookingstatements. The forward-looking statements are founded on the basis ofexpectations and assumptions made by the Company, includingexpectations and assumptions concerning: the acquisition ofCannavative, including the impact of increasing competition; timingand amount of capital expenditures; the legislative and regulatoryenvironments of the jurisdictions where the Company will carry onbusiness, have operations or plan to have operations; the ability ofthe Company to enter into contracts with companies to providefinancing on acceptable terms; conditions in general economic andfinancial markets; the ability of the Company's investments toexecute on their business plan; and the Company's ability toobtain additional financing on satisfactory terms or at all.Forward-looking statements are subject to a wide range of risks anduncertainties, and although the Company believes that the expectationsrepresented by such forward-looking statements are reasonable, therecan be no assurance that such expectations will be realized.

Any number of important factors could cause actualresults to differ materially from those in the forward-lookingstatements including, but not limited to, changes to global cannabislaws, how the developing U.S. legal regime will impact the cannabisindustry, the ability of the Company to implement its corporatestrategy, the state of domestic and international capital markets, theability to obtain financing, changes in general market conditions andother factors more fully described from time to time in the reportsand filings made by the Company with securities regulatoryauthorities. Except as required by applicable laws, the Company doesnot undertake any obligation to publicly update or revise anyforward-looking statements.

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