Adastra Holdings Ltd. – Potentially The Tightest Held and Best-Run Company in an Exploding Green Leaf Market

News Update: September 9, 2021
Adastra Holdings Announces Product Listings From Ontario Cannabis Store

1. Adastra Holdings Ltd. Canada CSE: (XTRX) U.S. OTC: (XTXXF) is a premier and well-established legacy brand in the green leaf extracts space. Yet, it’s trading at a FRACTION of the valuation of many of its competitors, despite being more profitable, less debt-ridden, and having more revenue growth potential.
2. Adastra Holdings Ltd. Canada CSE: (XTRX) U.S. OTC: (XTXXF) has positioned itself as a significant player in the Canadian extracts space. Over the last two years, this sector saw sales explode by 200%+ for medical and non-medical sales combined and 315% for non-medical sales alone.⁽²⁾
3. The stock has gone on several impressive rallies. After trading at just about $0.640 a share on April 9, 2021, it nearly doubled by 95.31% to roughly $1.250 by June 14, 2021. It then pulled back to approximately $0.770 on July 19, 2021, and rallied another 40.26% to $1.080 as of market close on September 3, 2021.⁽³⁾
4. Compared to competitors like The Valens Co, with a market cap nearly 10x larger than XTRX’s, XRTX has significantly less debt, a higher profit margin, and a much better EBITDA. Based on the figures and market cap comparables, XTRX could offer 5x, maybe 6x the value of Valens for a shareholder.⁽⁹⁾
5. Revenue growth potential is off the charts. Over the next 9-months, revenue could more than double, and by 2025, explode by over 16.5x.⁽²⁾ Based on retail sales alone, the brand could also see a 100+% year-over-year increase in sales.⁽²⁾

You’re here for a reason. If you’re reading this, you’re probably well aware of how astronomical the growth of the green leaf sector has been to this point. We have legalization this, and catalysts that. Everybody’s supposedly making money and drunk with happiness.

It’s not that simple, though. If it were, every green leaf company would be a juggernaut.

As the green leaf industry continues to skyrocket, companies have to find their niche and stand out more than ever before. This space has become increasingly competitive and saturated, with more unprofitable eyesores than you can count.

MyWallSt mentions unprofitability as a significant concern for green leaf stocks. Hyped-up and overvalued names like Canopy Growth, Aurora, Tilray, and Aphria, for example, are either reporting losses, running into cash flow problems, or spending more than they make.⁽¹⁾

Such is the blessing and curse of being a volatile sector.

That’s what sets Adastra Holdings Ltd. Canada CSE: (XTRX) U.S. OTC: (XTXXF) apart from everyone else.

We can talk all we want about how Adastra Holdings Ltd. is a legacy brand and a well-established and respected cann-a-bis extracts provider. But it’s so much more. I’d even go so far as to call it a green unicorn.

It is standard for high-growth industries like green leaf to experience saturation and be unprofitable, but Adastra Holdings Ltd. stands out. It stands out because of how well run it is, how eye-popping its growth potential is, and how strong its finances are.

All while trading at a FRACTION of the price of many of its competitors, despite being more profitable, less debt-ridden, and having more potential for revenue growth.

There’s a reason the stock’s advanced roughly 95.31% between April 9, 2021 and June 15, 2021.

With a diversified and growing product suite, Adastra Holdings Ltd. Canada CSE: (XTRX) U.S. OTC: (XTXXF) has positioned itself as a significant player in the Canadian extracts space. A space that saw sales witness an exponential 315% growth rate in non-medical sales alone over the last two years and a 200%+ sales growth rate including all medical and non-medical sales.⁽²⁾

The Indicators Show a Potentially Explosive Breakout For Adastra Holdings Ltd. Canada CSE: (XTRX) U.S. OTC: (XTXXF)

Ever since the end of April, Adastra Holdings has gone on two major rallies. The stock was trading at just about $0.640 a share on April 9, 2021. It then nearly doubled by 95.31% to roughly $1.250 by June 14, 2021. It then pulled back to approximately $0.770 on July 19, 2021, and rallied another 40.26% to $1.080 as of market close on September 3, 2021. That’s a nice way to go into labor day.

However, based on the potential catalysts for the company and how well run it is, this may only be the start. This is earth-shaking.

With a small float of about 31.31M as of September 3, 2021,⁽⁴⁾ this is also a stock that can potentially move explosively. For example, in just one day, on September 3, 2021, the stock skyrocketed roughly 14.89%.

As of September 3, 2021, many of its short-, medium-, and long-term technical indicators appear strongly bullish as well, such as its 20 Day Moving Average, 50 Day Moving Average, 100 Day Moving Average, and 150 Day Moving Average.⁽⁵⁾

The Real Story Behind Adastra Holdings Ltd. Canada CSE: (XTRX) U.S. OTC: (XTXXF)? Financially Sound, Well-Run, Tightly Held, Astronomical Growth Potential

What sets XTRX apart from many green leaf competitors is how financially sound and well-run the company is.

First and foremost, this is a very tightly held company. According to data gleaned from Yahoo! Finance, about 28.60% of the company’s shares are owned by insiders, for instance.⁽⁴⁾

Furthermore, the company could be significantly undervalued based on sales and infrastructure. Yet, it holds very little debt and has all the ingredients to potentially expand and expand rapidly.

This is a legacy brand with a current valuation estimated to be roughly $110.7 million.⁽²⁾

But this could be a conservative estimate based on the growth projections for this brand. As of April 2021, the company already totaled roughly $3,507,056.31 in revenue for 2021. This is more than half of what it did in all of 2020.⁽²⁾ Moreover, revenue could more than double within the next 9-months and explode by more than 16.5x by 2025.⁽²⁾

Furthermore, based on retail sales alone, the brand could see a 100+% year-over-year increase in sales.⁽²⁾

But let’s do a little bit of digging to see how truly incredible these figures are. Especially when you consider that these numbers, according to the company, do not include the brand roll-in.

Compare XTRX’s figures to a direct competitor with nearly 10x XTRX’s market cap like The Valens Company Inc. Despite the vast difference in market cap, XTRX’s is more profitable than Valens, with a stronger EBITDA.⁽⁶⁾

Not to mention, compared to Valens astronomical debt of nearly 13.315M,⁽⁷⁾ XTRX only has roughly $2.489M.⁽⁸⁾

So you do the math. If you want to get into the green leaf space, why would you even consider a company like Valens instead of Adastra Holdings Ltd.? Adastra Holdings Ltd. is a legacy brand, that based on the figures and market cap comparables, XTRX could offer 5x, maybe 6x the value of Valens for a shareholder. Valens is riddled with debt and has a lower profit margin than Adastra Holdings Ltd., despite having a market cap of over $550M.⁽⁹⁾

With All That Being Said: Who Exactly is Adastra Holdings Ltd. Canada CSE: (XTRX) U.S. OTC: (XTXXF)?

Adastra Holdings Ltd. is a high-quality/good value grass-roots legacy green leaf brand with an extensive market presence throughout Canada.

With white label manufacturing of products provided by Adastra Labs Inc. and sales distribution done by Cannmart Inc, Adastra Holdings Ltd. has blue sky potential ahead of it in 2021 as it is set to expand its retail footprint and product portfolio from 18 to 30+ SKUs in 2021.⁽²⁾

Adastra Holdings Ltd. is an alpha play in the green leaf sector as not only a legacy brand. It may very well be the first real name in extracts to deliver the experience of quality and value through its product offerings.

All with the end goal of making Adastra Holdings Ltd. the leading green leaf brand in North America.

Adastra Holdings Ltd. is led by a passionate team of green leaf entrepreneurs, chemists, scientists, and marketing gurus. These leaders see beyond the regulatory bottlenecks surrounding the green leaf sector. They see a future where the resurgence of traditional plant-based medicines is at the forefront of treating ailments, managing human health for reliable pain treatments, and fighting stress and disease through empowering the human body’s endo-cann-abin-oid system (ECS).

Current Product Line

Adastra Holdings Ltd. is a leading brand in Canada, with significant brand loyalty and high margins. Currently, Adastra Holdings Ltd. has 18 SKUs, including disposable pens, live resin, and shatter.⁽²⁾

But, this could just be the beginning. Adastra Holdings Ltd. plans to position itself as the Budweiser of CB and plans to expand to 30+ new SKUs, including new vape flavors, carts, and brands, and an expansion into various extract categories such as butter, diamonds, shatter, terp sauce, and wax, and expansion into new product categories such as⁽²⁾

• Flower
• Pre-roll
• Edibles – gummies, chocolates, sachets, tinctures, vials
• Beverages – RTD drinks, coffee products, powdered mix, shots, tea
• Topicals – roll-on, creams, oils, oral spray, patch

On May 25, 2021, Adastra Holdings Ltd. announced its shatter was now fully available nationally for medical consumers.⁽¹⁰⁾ Adastra Holdings Ltd.’s shatter is a well-known commodity throughout Canada as a robust and pure product, believed to significantly outperform other extracts. Adastra Holdings Ltd.’s shatter is extracted with butane to preserve cann-a-bis terpenes. The shatter’s fast-acting onset and naturally derived terpenes that maintain and enhance the natural flavor of the extracted plant are unique selling points for the product. Both medical and recreational consumers have high regard for this product.

Adastra Holdings Ltd.’s shatter is now available nationally for its medical consumers at CannMart.com. In the coming months, via CannMart’s wholesale distribution, it is available for recreational consumers in Alberta, Saskatchewan, Manitoba, British Columbia, and Ontario.

This new launch provides patients through CannMart.com the ability to purchase Adastra Holdings Ltd.’s latest shatter product line in three different varieties and the opportunity for Canadians to have a renewed experience in the limited shatter offerings currently available in Canada’s regulated market today.

CannMart’s medical patients can easily purchase Adastra Holdings Ltd. products from the comfort of their home and have them delivered directly to their door once they have received their medical documents.

Adastra Holdings Ltd. Canada CSE: (XTRX) U.S. OTC: (XTXXF): A Rapidly Growing Retail Footprint

As of February 2021, there were about 1484 retail storefronts with about a 75+% market penetration.⁽²⁾ However, by the end of this year, this number could balloon past 2500.

In other words, Canada’s green leaf retail space is skyrocketing, and Adastra Holdings Ltd. is right at the forefront. Already, Adastra Holdings Ltd. has a significant retail presence throughout the country. By the end of the year, this footprint is only expected to grow even more.⁽¹¹⁾

Adastra Labs Inc.- The R&D Arm

Today, Adastra is the behind-the-scenes contract manufacturing arm behind Adastra Holdings Ltd.’s products.

Adastra Labs is a Health Canada Standard Processor (cann-a-bis extraction, no cultivation), cann-a-bis product formulator/manufacturer, and licensed cann-a-bis sales (extracts, edibles, and topicals) operator with a 13,500 sq. ft. facility located in Langley, BC, Canada.⁽¹²⁾

With its newly commissioned hydrocarbon extractor, Adasta’s increased extraction capacity up to 146,000 kgs per year (agricultural scale). This makes them one of the largest full-service cann-a-bis extraction companies in all of Canada.⁽¹²⁾

Chemia Analytics Inc: The Testing Lab

Chemia Analytics Inc. is the analytical testing laboratory behind Adastra Holdings Ltd.’s products. This state-of-the-art testing facility conducts QA/QC and compliance testing services for licensed producers of cann-a-bis and cann-a-bis products under Health Canada regulations and other services for high-quality product assurance.

Roughly $1M in CAPEX and strategic hires could enable them to provide broader analysis and testing services to licensed producers throughout Canada.⁽¹²⁾ This could very well make Chemia one of the most advanced cann-a-bis analysis, product sampling, testing, and R&D labs in the entire industry.⁽¹²⁾

Adastra Holdings Ltd.Canada CSE: (XTRX) U.S. OTC: (XTXXF)-Now Entering a Potential $100B⁽¹³⁾ Psy-che-delics Space

In what could be the latest earth-shaking catalyst for Adastra Holdings, the company announced on Sept. 1, 2021, that Health Canada accepted its application for a Controlled Dr-ugs and Substances Dealer’s License.⁽¹⁴⁾ Health Canada is now formally reviewing the application.

A Dealer’s License would permit Adastra to perform the following activities in an exploding, potentially $100B⁽¹³⁾ Psy-che-delics Space:⁽¹⁴⁾

• Procure controlled substances, including by import, synthesis, propagation, cultivation, and harvesting of psychedelic mushrooms for Psilocybin extraction;
• Research and manufacture controlled substances such as Psilocybin and Psilocin;
• Business-to-business sale of controlled substances, including by export; and
• Sale of controlled substances via pharmacies.

Known for its renowned can-nab-is concentrate products, Adastra has now successfully taken the first steps in becoming a licensed cultivator, tester, extractor, and seller of controlled substances, including Psi-loc-ybin, Psi-loc-in, MD-MA, N, D-MT, 5-Me-O-D-MT, and L-SD . If and when the Dealer’s license is formally approved, Adastra Labs expects to conduct the majority of this work out of its 13,500 square foot, state-of-the-art extraction, and production facility located in Langley, BC.⁽¹⁴⁾

“Adastra Labs’ laboratory is perfectly positioned to conduct groundbreaking research into psychedelic formulations and testing due to the existing GMP-compliant construction, security and our proven track record operating in the can-nab-is sector,” said Donald Dinsmore, COO, Corporate Secretary and a director of the Company. “With this infrastructure in place, securing a Controlled Dr-ugs and Substances Dealer’s License a logical next step for the Company. Putting quality first throughout, our processes will allow us to serve the emerging medical market for these substances.”

The company expects that doing extraction research and development into psy-che-delic compounds will prepare it to collaborate with partners such as medical doctors, pharmaceutical companies, and pharmacies. All as clinical trials eventually lead to the legalization of psy-che-delics and the advancement of micro-dosing.

“Ongoing research into compounds like Psil-ocy-bin has demonstrated that there may be significant positive impacts when psychedelics are used to treat mental health issues such as PTSD, anxiety, depression, and even migraines,” said Michael Forbes, CEO and a director of Adastra. “With our team’s extensive background in plant biochemistry, pharmacology, and chemistry, as well as clear indications of changing societal and regulatory environments regarding psychedelic treatments for mental health issues, it is clear that Adastra is well-suited to enter into the psy-che-delic space.”

Health Canada has advised that it commits to 270 calendar days from the date of receipt for processing these applications and expects to finish the review of Adastra’s application by March 2022.⁽¹⁴⁾

Submission of the Company’s Dealer’s Licence application is subject to compliance with applicable securities laws, including any necessary approvals by the CSE.

Adastra Holdings Ltd.’s Canada CSE: (XTRX) U.S. OTC: (XTXXF) Leadership: The X-Factor

We mentioned earlier that Adastra Holdings Ltd. is led by a passionate team of green leaf entrepreneurs, chemists, scientists, and marketing experts. But, read a little bit more about the team. You’ll find an impressive group that sees beyond the regulatory bottlenecks surrounding the cann-a-bis sector. This is a group with a vision into a future where the resurgence of plant-based medicines is at the forefront of treating ailments and managing human health.

Adastra Holdings Ltd.’s leadership could very well be the secret weapon spearheading what could be the most financially sound and well-run green leaf operation in not only Canada, but the world.

Michael Forbes
CEO

Mr. Forbes comes to Adastra Holdings Ltd. with a background firmly rooted in medicine, cannabis production and entrepreneurship. Demonstrating his knowledge and experience in the cannabis industry, Mr. Forbes has founded five cannabis medical clinics, under the Concord Medical Clinic umbrella, built Clarity Cannabis and Honeycomb Cannabis to over 10 locations, and has also founded the cannabis licensed production facility, Sitka Weed Works, in Canada.

Donald Dinsmore
COO

Donald is a professional plant biochemist with a background working with successful research groups at the University of Calgary. There, he earned his Bachelors and Masters of Science degrees in Plant Biochemistry. He was Operations Manager for Heart Rock Mountain Farms, CA, USA cann-a-bis growers.

Steph Martens
Marketing Strategist

Steph has an academic background in psychology and public relations. She has over a decade of experience working in hospitality, events, promotions, and communications. She previously worked with a standard processor in the cann-a-bis space, supporting them during their startup phase through RTO and licensing. She is a co-founder of Root Creative.

Operations Team

Dr. Kyle Boniface

Kyle is a professional chemist with a demonstrated ability to communicate technical and complex information to peers, industry and academic collaborators, students, and the general public. He has proven cann-a-bis industry experience directing programs for cann-a-bis extraction, product development, and R&D. He is also the named inventor on 2 patents related to polymer and materials science.

Dr. Priyanka Nalawade

Pri is a senior research and development chemist with extensive experience synthesizing and characterizing novel high-performance polymers obtained from renewable sources. She earned her Bachelor of Technology in Polymer Engineering at the Institute of Chemical Technology, Mumbai, India, and Ph. D. in Polymer Engineering at the University of Akron, Ohio.

Thu-Thuy T. Dang

Thuy serves as an Assistant Professor at the UBC Chemistry Department. She is part of the UBC Cluster of Research Excellence in Agricultural Technologies and Bioproducts (CREAT- Bio). Formerly a Post-doctoral research fellow for the European Molecular Biology Organization at John Innes Centre, UK. Ph.D. & MSc in Plant Biology from the University of Calgary.

Key Advisors

Justin Manuel

15 years experience with the Canadian Marihuana Medical Access Regulations (MMAR), Master Grower, and pioneer in developing concentrates and extractions for medical patients licensed for cann-a-bis use. Developed and perfected SOPs for a variety of extraction technologies.

Cam Tavish
Corporate Counsel

Cam McTavish is a partner at the law firm Clark Wilson practicing in the firm’s Corporate Finance & Securities and Mergers & Acquisitions practice groups. Cam provides strategic advice to public and private companies in a diverse range of industry sectors.