Product Growth Update & Announces Insider Open-Market Stock LANGLEY, BC, Oct. 15, 2021 /PRNewswire/ - Adastra Holdings Ltd. (formerly Phyto Extractions Inc.) (CSE: XTRX) (FRA: D2EP) ("Adastra" or the "Company") today announced positive operational and financial developments as the Company continues to pursue its mission to be a leader in the development and manufacture of pharma-quality, cannabis API and derivative products. These developments include record shipments in September, product portfolio expansion, and continued progress with Health Canada regarding its Controlled Substances Dealers License application.
Record September Shipments
Adastra shipped 68,272 consumer-packaged units and 20,000g of bulk extract in September compared to 41,571 units in September 2020, a 64% increase year over year.
Psychedelics
Adastra received a request for additional information from Health Canada as part of the agency's formal review of the Company's application for a Controlled Drugs and Substances Dealer's License, which was submitted and formally accepted in late August 2021. The Company believes that the request for information is the next step toward attaining approval. In addition, Health Canada advised it commits to a 270 calendar day review period from the date of receipt for processing these applications. As a result, management expects Health Canada to finish reviewing Adastra's application by March 2022.
New Products
Adastra is moving aggressively to expand its Phyto Extraction branded products portfolio to take full advantage of the shift in Canadian consumer preference for derivative hydrocarbon extract products. Planned new products include:
- THCA Diamonds & Sauce. Adastra has commenced production of a THCA diamond concentrate that it intends to introduce to the market under the Phyto Extractions brand label in December 2021. Known popularly as the "super concentrate," THCA diamond is a highly potent variety of concentrate that gives users the option to inhale nearly pure THC and is currently the best-selling concentrate product type across Canada based on recent Headset data.
- White Widow Shatter. Adastra is introducing a 1g version of White Widow. This balanced hybrid strain is a cross between a Brazilian sativa landrace and a resin-heavy South Indian indica that is expected to be available across Canada in December 2021.
- Vapes. Adastra is introducing a 1g Black Cherry Distillate vape cartridge that management believes will capture the market's excitement in new vape products.
Operational Changes
Adastra is hiring to scale up and meet increasing order demand by increasing capacity across two shifts (Mon-Fri) and by adding a weekend shift primarily for packaging. Adastra Labs Inc. is actively hiring staff across two shifts to meet increasing order demand for Phyto Extraction products. In addition, a weekend shift was also added to meet the growing demand for packaged goods.
Insider Open Market Purchases of Adastra Common Stock
The Company's Chief Executive Officer and Chief Operating Officer have recently purchased shares of the Company on the open market, the details of which will be set out in their respective SEDI reports.
Michael Forbes, Chief Executive Officer of Adastra, said, "With the downturn in industry stock prices recently, this was an opportunity to show investors that Adastra management is committed to creating long-term shareholder value. We believe the current share price does not reflect the true value of Adastra and the incredible growth we have coming in the near future."
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