August 28, 2026 - Calgary, Alberta - TheNewswire – Vencanna Ventures (the "Company" or "Vencanna") (CSE:VENI) is pleased to provide a summary of its financial results as of April 30, 2026.  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, 2026, which are available on SEDAR+ at www.sedarplus.ca.  All financial measures are expressed in U.S. dollars unless otherwise indicated.  

Further, the Company announces that it has elected to adopt semi-annual financial reporting ("SAR") in reliance on the Coordinated Blanket Order 51-933 - Exemptions to Permit Semi-Annual Reporting for Certain Venture Issuers (the "Blanket Order"), issued by the Canadian Securities Administrators.

The Blanket Order is a pilot program which permits eligible venture issuers listed on the Canadian Securities Exchange (the "CSE") to voluntarily move from quarterly to semi-annual financial reporting. The Company confirms that it meets the eligibility criteria under the Blanket Order. By adopting SAR, the Company aims to reduce the administrative and financial burden associated with quarterly reporting.

As a result of this election, the Company will file interim financial reports and related management's discussion and analysis ("MD&A") on a semi-annual basis, rather than quarterly. The Company's fiscal year-end is April 30, and it will continue to file annual audited financial statements (due within 120 days of April 30) and semi-annual interim financial statements for the period ending October 30. The Company will continue to remain subject to timely disclosure requirements and will continue to report all material changes and significant developments in accordance with National Instrument 51-102 - Continuous Disclosure Obligations.

On April 30, 2024, the Company acquired The Cannavative Group (“Cannavative”) in an all-share transaction (the “Transaction”).  The acquisition of Cannavative changed the Company’s regulatory and accounting criteria, from a merchant capital firm to a U.S. based cannabis operating company.  Cannavative, collectively with its subsidiaries, Cannavative Farms LLC and Cannavative Extracts LLC, is a licensed manufacturer and distributor of recreational cannabis flower and extracted products that operates exclusively in the State of Nevada where the legal commercial production and vending of marijuana is permitted by Nevada state law under Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”).

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.  

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

Nevada is a major cannabis market in the U.S with sales over $723 million for the 2025 calendar year according to the State of Nevada Department of Taxation, though this is down 11% compared to the previous year, partly due to declining tourism (down 7% in 2025 compared to 2024 according to the LVCVA Research Centre) and price compression.  However, with 38 million tourists in 2025, the Nevada tourist industry, and Las Vegas in particular, offers Cannavative significant national brand exposure.

During the past two years, Cannavative has focused on streamlining its operations with an emphasis on manufacturing and distribution to better emphasize its core brands: Resin8 and The Motivator.  Significant cost saving measures have been made, including relocating to a smaller facility, a reduction in headcount, improved transportation logistics, lower supply costs, and the elimination of redundant administrative costs.  These cost cutting measures have been critical in keeping Cannavative competitively priced, however, challenges remain due to ongoing price compression and market consolidation.  The Company continues to review the viability of Nevada market.

New Jersey

On October 3, 2025 TGC exited its lease in Cinnaminson, NJ, and the Company was released of all obligations regarding the lease.  During fiscal 2025, CGT assigned its interest in its Bellmawr retail lease and associated municipal support to the Company.  October Gold was unsuccessful in securing a retail site.  No further activity is anticipated with the NJ Entities.  

The Company holds a 95% interest in Vencanna NJ LLC (“Vencanna NJ”) which has been awarded an Annual Class 5 Retail license at its retail site situated in Bellmawr, NJ.  On November 27, 2025 the Company announced that it had entered into a definitive sale agreement with an arm’s length purchaser (the “Purchaser”) to sell its 95% membership interest in Vencanna NJ (the “Vencanna NJ Transaction”).  Under the terms of the agreement, the total consideration payable by the Purchaser to Vencanna for its membership interest in Vencanna NJ is $1,250,000, plus cash reimbursement of certain deposits amounting to approximately $135,000 (the “Reimbursement”), plus an earnout of up to $250,000 subject to specified performance conditions.  Subsequent to year end, on May 1, 2026 the $250,000 deposit in escrow was released to the Company. The Company continues to advance the proposed disposition of its interest in Vencanna NJ, LLC pursuant to the terms of the definitive sale agreement entered into on November 25, 2025.

Upon completion of the Vencanna NJ Transaction, Company intends to add the net proceeds from the Vencanna NJ Transaction to its cash on hand. The Company has not allocated the proceeds to any specific use other than for working capital purposes, nor does the Company at this time have material commitments or immediate plans related to the deployment of such funds.

Financial Highlights

Financial results for the three months ended April 30, 2026 and 2026

Revenues for the period ended April 30, 2026, were $488,879 (2025 - $633,704) and the cost of sales was $408,784 (2025 - $1,036,568) generating a profit margin for the quarter of 16% (2025 – negative 64%).  The Company recorded a comprehensive loss of $476,932 (2025 – $968,295), or $0.00 per common share (2025 – loss of $0.01 per common share) for the period.

During the recent quarter, cost of sales and expenses decreased relative to prior quarters while revenues held steady, as the Company continued with its cost cutting measures. Expenses for the period were $224,182 compared to $71,009 for the period ending April 30, 2025 as a portion of certain expenses relating to Amortization and Depreciation, Development of Licenses, Property Tax and Utilities, and Salaries, Benefits, and Bonuses in the quarter ended April 30, 2025 were allocated to cost of sales increasing 2025 “Cost of Sales”, and reducing “Expenses” for that period.  

The net loss for the period was $470,376 (2025 - $1,010,202).  After adjustments the Company had a Comprehensive loss of $476,932 (2025 - $968,295).

Financial results for the years ended April 30, 2026 and 2025

The Company recorded revenues of $1,880,330 for the year ended April 30, 2026 compared to $4,013,046 revenues for the year ended April 30, 2025.  The Company recorded a comprehensive loss of $1,851,914, $0.01 per common share for the year ended April 30, 2026 as compared to a loss of $4,454,748, $0.02 per share for the year ended April 30, 2025.  

Expenses for the year ended April 30, 2026 were $1,287,787 (2025 - $2,966,439). The decrease was primarily due to lower transaction-related and operating costs following the Company’s streamlining initiatives. Amortization expense decreased to $143,358 (2025 - $675,582), and interest and accretion on leases decreased to $176,449 (2025 - $433,081), primarily as a result of the termination of one lease and the assignment of another lease during the year, which reduced the Company’s right-of-use assets and related lease liabilities. Marketing and selling expenses decreased to $61,680 (2025 - $139,597), office and miscellaneous expenses decreased to $111,818 (2025 - $296,820), professional fees decreased to $184,776 (2025 - $563,277), and salaries, benefits and bonuses decreased to $488,140 (2025 - $756,892).

The Company recorded a net loss of $1,843,795 for the year ended April 30, 2026 (2025 - $4,533,571), compared to a comprehensive loss of $1,851,914 (2025 - $4,454,748). The decrease in net loss was primarily due to lower operating and other expenses in the current year, as the prior year included significant non-cash and non-recurring charges, including the write-off of goodwill and intangible assets and the loss on disposal of property. Other comprehensive loss was $8,119 for the year ended April 30, 2026 compared to other comprehensive income of $78,823 in 2025.

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 100 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 market for medical and recreational cannabis in the United States and the Company’s brand exposure; the state of the cannabis market and U.S. regulatory changes in respect thereof; the Company’s adoption of the SAR and its intention to file interim financial reports on a semi-annual basis; that the Company remains subject to continuous disclosure obligations; ongoing review by the Company of the viability of the Nevada market; the Company’s expectation that no further activity will be carried out with respect to the NJ Entities; the closing of the Vencanna NJ Transaction and use of net proceeds from the Vencanna NJ Transaction; and expectations regarding the business plans of the Company and its subsidiaries. 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: 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 Company's ability to obtain additional financing on satisfactory terms or at all; continuation of the Blanket Order; that the Vencanna NJ Transaction will close on the terms and timeline currently anticipated, and net proceeds therefrom will be deployed as intended; that the Company will continue to assess and monitor the viability of the Nevada market for its operations; that no further activity will be carried out with respect to the NJ Entities and no material liabilities will arise in connection therewith; the ability of the Company to enter into contracts with companies to provide financing on acceptable terms; conditions in general economic and financial markets; and the ability of the Company's investments to execute on their business plan. 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, that the Vencanna NJ Transaction may not close on anticipated terms or at all, or net proceeds may be less than expected or may need to be reallocated, notwithstanding the Company's expectation that no further activity will be carried out with respect to the NJ Entities, unforeseen events, obligations, or circumstances may require the Company to take further action in connection with the NJ Entities, or unforeseen liabilities, claims, or regulatory actions may arise in connection therewith, and that the Company and its subsidiaries may be unable to execute their business plans due to changes in market conditions, regulatory developments, financing constraints or operational challenges, 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.

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