(Image via Adastra Labs Holdings Ltd.)
The cannabis 2.0 era is here, and a number of leading companies are seeing their capacities advance along with their business as they evolve their operations and offerings.
Langley, BC-based cannabis Company
Adastra Labs Holdings Ltd. (CSE: XTRX, Forum) saw its stock jump after
announcing that it had purchased an industrial scale cryo-ethanol extraction system from
Evolved Extraction Solutions, a distributor of industry leading modular cannabis processing equipment.
A Health Canada Licensed cannabis processing and analytical testing services Company, Adastra’s impressive capacity is expected to
triple through this team up.
Adastra’s Chief Executive Officer stated
in a media release on this news that the expansion into ethanol extraction is part of the Company’s business strategy to incorporate all main cannabis extraction technologies while service offerings to business-to-business (B2B) clients expands.
Evolved will provide equipment, installation, commissioning, and training services for their EV-MASS Cryo-Ethanol system. Evolved is Required to meet performance milestones for their extraction equipment. The EV-MASS Cryo-Ethanol extraction system is capable of processing 650 kg of cannabis or hemp biomass per day, producing winterized (de-waxed) cannabis or hemp oil.
This would play well into the Company’s wheelhouse, as a high-quality distillate provider to fully capitalize on the value offered with the cannabis edibles / food and beverage market. According to a report from analytics firm
Deloitte, the market is worth an estimated $2.7 billion (CAD) annually, with edibles contributing more than half of that value ($1.6 billion CAD). The report also noted at the time that 11% of Canadians already consume cannabis edibles and other alternative products, while 13% of Canadians expect to buy them.
When Stockhouse Editorial introduced readers to Adastra Labs
back in January, we highlighted the Company’s work to become a Standard Processor and Analytical Testing Laboratory under Health Canada, with licenses to produce cannabis extracts and provide third party analytical testing services.
With a co-located Health Canada Licensed Standard Processing Facility and Analytical Testing Laboratory, Adastra can produce cannabis extract through supercritical CO2 extraction and secondary distillation as well as conduct in-process quality testing. Such extracts can easily be incorporated into edibles, beverages, topicals, tinctures, vape cartridges and other products that will serve the Canadian medical and adult-use cannabis markets.
Another key element to Adastra’s unique business is that it offers on-site testing and is one of the few to do so. In creating a new standard for cannabis extracts, the Company has an ability to understand the specific processing needs of its clients.
Fast-forward eight months, Adastra is pushing the boundaries of its capacity with the EV-MASS integrated solution, which will provide an optimized process flow that is expected to reduce the cost of production. How it accomplishes this, is through its modular design, which permits the Company to easily scale up capacity with simplified installation in the event of increased market demand.
Adastra’s Director of Production Dr. Kyle Boniface hailed the EV-MASS Cryo-Ethanol system as a means to bring Adastra an industrial-scale cannabis/hemp oil production capability.
“This capability is expected to triple Adastra's CO2 supercritical extraction production line's capacity. Further, the system has reduced manpower requirements compared to other extraction processes and will allow Adastra to free up its CO2 extraction line for other types of concentrate products, such as High Terpene Full Spectrum Extracts.”
Adastra Holdings Ltd. has seen its stock jump significantly over the past month, riding the momentum of positive news, now it is climbing to new highs as it looks to grow its capacity and volume through output expansion to meet the rising market value that edibles present. Taking a look at how XTRX’s stock has performed since July, in the face of unprecedented market turbulence, is reason enough for investors to do deeper due diligence into this Company.
(Adastra stock chart: Jan 2020 – Aug 2020. Click to enlarge.)
To find out more about Adastra Labs, visit their website
adastralabs.ca.
New to investing in Cannabis? Check out Stockhouse tips on How to Invest in Cannabis Stocks and some of our Top Cannabis Stocks.
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FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.