Adastra Labs appoints Munro president, CEO
2021-03-10 19:01 ET - News Release
Mr. Scott Munro reports
ADASTRA LABS PROVIDES CORPORATE UPDATE: MANAGEMENT CHANGE AND ACQUISITION
Adastra Labs Holdings Ltd. has appointed J. Scott Munro as president, chief executive officer and director (chairman) effective March 1, 2021, in conjunction with the resignation and retirement of Andy Hale from said positions. The company wishes Mr. Hale all the best as he pursues other life passions and ambitions.
Mr. Munro is an experienced venture capitalist, accountant and entrepreneur who has led companies and served in a variety of senior executive roles including CEO, chief financial officer and director in both Canadian and United States public and private companies for over 25 years. Over the past 10-plus years, Mr. Munro has owned and operated private venture capital and consulting firms that provide M&A (merger and acquisition) advisory, going-public transactions, reporting, and other services to private and public companies, including in the life sciences sector in which Adastra operates.
"This is an exciting time for Adastra, its employees and shareholders as the company is handed off to a strong management team led by Mr. Munro with a good footing to scale the business into the future. It's been a great pleasure and rewarding endeavour in helping to build the company from the ground up to this point in time, while working with its amazing employees and advisers while looking forward to bigger growth ahead," Mr. Hale expressed.
Acquisition update for Phyto Extractions Brands
Adastra and 1204581 B.C. Ltd. (doing business as Phyto Extractions) have signed an extension to the letter of intent (LOI) on Dec. 23, 2020, extending the exclusivity period for entering into a transaction to on or before May 31, 2021, and are proceeding with negotiating the entry into a definitive agreement and then closing on the acquisition of a 51-per-cent controlling interest in Phyto Extractions Brands that includes a right of first refusal for the company to acquire the remaining 49-per-cent interest. As a condition to close, the company is awaiting receipt of final independent valuations on the respective companies along with a fairness opinion to determine the number of consideration shares to be issued for the acquisition. In addition to any applicable regulatory holding requirements, the consideration shares will be escrowed and released over 24 months from the date of closing which would run concurrently with any regulatory hold periods.
Adastra and Phyto Extractions are under an agreed exclusivity and freeze period, pursuant to the LOI, until closing of the definitive acquisition agreement in the coming weeks that is also subject to any required securities exchange approvals.
In conjunction with the acquisition of Phyto Extractions Brands, the company is considering undergoing corporate rebranding and restructuring prior to closing. As a result, the company is entering into voluntary trading halt on the Canadian Securities Exchange (CSE) until completing these actions in preparation to close on the definitive agreement for the acquisition.
About Phyto Extractions Brands
Phyto Extractions products have been available in the regulated Canadian cannabis market since December, 2019, when it launched four SKUs (stock-keeping units). Since that time, the brand has grown over fourfold to offer 18 SKUs including 0.3-gram disposable vaporizers (vapes) in four strains/flavours, 0.5-gram vaporizing cartridges in six strains/flavours with one kit, recently expanded to the one-gram cartridge format in four strains/flavours, two strains of live resin and a unique high-terpene full spectrum extract (HTFSE) CO2 terp sauce SKU.
Phyto Extraction products are currently sold in the provinces of British Columba, Alberta, Manitoba, Saskatchewan and Ontario.
About Adastra Labs
Adastra Labs is an agricultural-scale cannabis extraction, distillation and product manufacturer located in Langley, B.C., at its co-located Health Canada-licensed standard processing and analytical testing laboratory (Chemia Analytics) facilities. Chemia Analytics is a wholly owned subsidiary of the company. Adastra also has pending sales and research and development (R&D) licence applications amendments awaiting imminent Health Canada approval.
The company produces cannabis extracts through its newly commissioned hydrocarbon extractor with capacity up to 450,000 kilograms per year. The company produces a variety of extracts, distillate, vape cartridges, live resin and terp sauce branded under Phyto Extractions, with expanded cannabis product lines launching in 2021, subject to receipt of Health Canada sales licence addendum(s), including: edibles, beverages, bulk distillate, hydrocarbon extracts (butter, diamond, live resin, shatter, terp sauce and wax), flower (bags and prerolls) and topicals that will serve the Canadian medical and adult-use cannabis markets.
Hydrocarbon extraction
Adastra has completed its final commissioning, certification and site upgrade approvals for its ExtractionTek Solutions MeP XT70 closed-loop hydrocarbon extractor. This extractor is rare in its Canadian certification with production capacity of over 400 kg per day of cannabis biomass (hemp and weed) into a variety of hydrocarbon cannabis concentrate products with flexibility to run propane, butane and blended solvents to afford the extractor the ability to produce a variety of cannabis concentrate products.
This includes high-THC (tetrahydrocannabinol) shatter production capacity of over 50 kg per day that well positions the company to leverage the acquisition of Phyto Extractions and its strong grassroots brand recognition for high-quality and good-value cannabis concentrates.
We seek Safe Harbor.
© 2021 Canjex Publishing Ltd. All rights reserved.