Adastra Holdings is combining art and science to produce cannabis extracts and looking to psychedelics
- Adastra Holdings completes acquisition of Phyto Extractions
- Adastra Labs sets up 2021 with Term Sheet for Phyto Extractions and JV with Joyn Botanicals
Quick facts: Adastra Holdings
Price: 1.14 CAD
Market Cap: $49.4 m
About the company
Founded in 2014, Adastra Holdings Ltd - formerly Phyto Extractions - has built a successful reputation as a household name in cannabis concentrates among consumers and retailers alike. Adastra Labs Inc. was founded in 2018 and is an agricultural-scale cannabis extraction, distillation, and product manufacturer.
The company producing and distributes cannabis-derived products designed for medical cannabis and forward-looking therapeutic use. As a leading supplier, Adastra currently distributes its product line to 1400-plus adult-use retailers and a web-based medical platform, CannMart Inc., seeking to provide consistent, quality concentrate products and alternative treatment options across the country to patients.
How it is doing
With complete control of the popular Phyto Extractions brand asset, the company said it intends to leverage Phyto Extractions's proven product development expertise, skilled coast-to-coast sales force, and existing relationships with retail stores across Canada to drive accelerated growth and profitability for an expanded portfolio of Phyto Extractions-branded cannabis products.
The acquisition is expected to be immediately accretive to Adastra.
"Phyto Extractions has already gained the trust of over 1,400 retailers and consumers across Canada, representing over 70% of all regulated Cannabis retail stores,” Adastra CEO Michael Forbes said in a statement.
Adastra Holdings (CSE:XTRX, FRA:D2EA) Ltd, formerly Phyto Extractions Inc, announced that it has struck a share purchase agreement to acquire all the issued and outstanding shares of 1204581 BC Ltd, doing business as Phyto Extractions from the shareholders of Phyto Extractions.
Langley, British Columbia-based Adastra said it has agreed to issue 20 million shares to the vendors at a deemed price of $0.96 per share for a total purchase price of $19.2 million.
Adastra Holdings Ltd announced it had sold nearly $1.7 million worth of product during the month of August, a new company record.
The Langley, BC-based cannabis company reported the numbers on a preliminary unaudited basis using provincial wholesale sell-through data.
What management says
Adastra Labs (CSE: XTRX) CEO Andy Hale joined Steve Darling from Proactive with news the company has made some very significant moves that will see them take some big steps forward in 2021. Hale telling Proactive about the company agreeing to a joint venture with Joyn Botanicals and also a term sheet with Phyto Extractions.
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