Adastra Holdings Ltd 6-K, filed Apr 4, 2022
Adastra Holdings Ltd. (XTXXF)
About this 6-K
Adastra Holdings Ltd filed this 6-K on April 4, 2022.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February and March, 2022
Commission File Number 000-56365
Adastra Holdings Ltd.
(Translation of registrant's name into English)
5451 - 275 Street, Langley, British Columbia V4W 3X8
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1) [ ]
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant's "home country"), or under the rules of the home country exchange on which the registrant's securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant's security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
SUBMITTED HEREWITH
- 2 -
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ADASTRA HOLDINGS LTD.
/s/ Michael Forbes
___________________________
Michael Forbes, Chief Executive Officer, Corporate Secretary and Director
Date: April 4, 2022
Adastra Holdings Expands Co-Manufacturing Portfolio and Provides Facility Expansion Update
LANGLEY, BC, Feb. 23, 2022 /CNW/ - Adastra Holdings Ltd. (CSE: XTRX) (FRA: D2EP) ("Adastra" or the "Company") has started the new year strong by signing co-manufacturing agreements to produce high-potency, pure hydrocarbon-extracted concentrate products, continuing to expand its portfolio of brand partners, and growing the Company's dossier of SKUs in the Canadian market.
Adastra Labs Facility Expansion (CNW Group/Adastra Holdings Ltd.)
This brings Adastra closer to exceeding its goal of $5 Million per month in sales by Summer 2022.
Facility Expansion
Adastra is rapidly scaling its production facility to meet growing demand for hydrocarbon-based products and to capitalize on its recently announced dried flower sales license. Adastra has committed to purchase critical equipment that will effectively quadruple its hydrocarbon extraction capabilities.
"Improvements to our post-processing capabilities, and expanding production operations to include multiple shifts, seven days a week, will allow us to rapidly increase our hydrocarbon capacity and product offerings to include Diamonds, full-spectrum cartridges and other highly sought-after premium cannabis extracts. Not only will this help us to diversify our product offering under Phyto Extractions but also offer these in-demand products to our growing list of B2B customers," said Michael Forbes, Chief Executive Officer, Adastra.
Further, in April 2022, Adastra is expected to commission a high-capacity automated pre-roll machine. Once commissioned, this equipment will enable Adastra to produce upwards of 10 million dried flower and infused pre-rolls a quarter, allowing the company to tap into an extremely fast-growing market segment. Adastra intends to market pre-rolls and infused pre-roll products under the Phyto Extractions brand and offer contract manufacturing services to other high impact brands in the Canadian market.
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 have been set out in their respective SEDI reports. Michael Forbes, Chief Executive Officer of Adastra, said, "This is another 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."
About Adastra Holdings Ltd.
Founded in 2018 and formerly known as Phyto Extractions Inc., Adastra is a leading manufacturer and supplier of innovative ethnobotanical and cannabis science products designed for the adult-use and medical markets and forward-looking therapeutic applications. Adastra is renowned throughout Canada for its popular line of Phyto Extractions branded cannabis concentrate products available on shelves at over 1,400 adult-use retailers across the country. The Company also operates Adastra Labs, a 13,500 sq. ft. agricultural-scale Health Canada licensed facility located in Langley, BC., focused on extraction, distillation, and manufacturing of cannabis-derived products. Adastra has now successfully taken the first steps in becoming a licensed cultivator, tester, extractor, and seller of controlled substances, including Psilocybin, Psilocin, MDMA, N, N-Dimethyltryptamine (DMT), 5- MeO-DMT, and LSD by applying for a Controlled Substances Dealer's Licence, which is under review by Health Canada. Pending Health Canada approval, Adastra is poised to be a drug formulation and development leader in this emerging sector. In addition, with the recent acquisition of 1225140 B.C. Ltd., doing business as PerceiveMD, Adastra operates a multidisciplinary centre for medical cannabis and psychedelic therapies, working alongside doctors and healthcare professionals within the regulated environment to help create efficacious remedies that address the actual needs of patients.
Connect with Adastra: Email | Website | Instagram | LinkedIn | Twitter | Facebook
Forward -Looking Information
This news release contains forward-looking information within the meaning of Canadian securities legislation concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking information in this news release includes statements with respect to obtaining a Controlled Drugs and Substances Dealer's License from Health Canada; statements regarding anticipated new products, the adoption thereof, the intention to schedule additional shifts to meet consumer demand, and goal of $5 million a month in sales by Summer 2022 and the timelines set out herein. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. Important factors that could cause actual results to differ materially from those expressed in the forward-looking information include the availability of a qualified workforce; changes in regulations or licensing affecting the Company's business; reduced demand for cannabis and cannabis related products; reductions in the Company's retail space and store locations; and other factors beyond the control of the Company. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.
SOURCE Adastra Holdings Ltd.
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%SEDAR: 00007921E
For further information: Michael Forbes, CEO & Director, P: (778) 715-5011, E: michael@adastraholdings.ca
CO: Adastra Holdings Ltd.
CNW 07:30e 23-FEB-22
Adastra Holdings Announces Co-Manufacturing Partnership to bring Zyre Brands to Market
LANGLEY, BC, March 15, 2022 /CNW/ - Adastra Holdings Ltd. (CSE: XTRX) (FRANKFURT: D2EP) ("Adastra" or the "Company") a Health Canada Licensed cannabis processing, sales, organoleptic testing, and analytical testing services company, is pleased to announce a private label manufacturing agreement with Zyre Brands Corp. ("Zyre").
Under the terms of this agreement, Adastra will manufacture custom-formulated cured resin vape products to sell under the Zyre brand in the Canadian adult-use market.
Adastra's ability to produce and formulate quality, in-demand concentrates and vape products has been demonstrated through their established Phyto Extractions brand. The inclusion of Zyre vapes into Adastra's production schedule establishes Adastra's strong footprint in the growing vape and concentrates segment. This agreement expands the Company's rapidly growing contract manufacturing portfolio, highlighting Adastra's capabilities across multiple business verticals.
"We felt Zyre's leadership team and brand strategy was a strong addition to the growing contract manufacturing portion of our business. Its background and success in growing cannabis companies and startups is admirable, and complementary in our burgeoning industry. This, paired with their focus on targeting the young adult GenZ customer as a vapes only brand, gives us confidence that they are heavily invested in growing this partnership to the benefit of both parties." Michael Forbes, CEO, Adastra Holdings Ltd.
"Adastra has a demonstrated track record of success. Its strong extraction and processing capabilities made them our top choice private-label manufacturer, suited to launch our vape brand for the up-and-coming adult consumer. We were impressed by the quality of their input material and extraction capabilities, and look forward to working with the team to introduce our consumer-focused brand into the Canadian adult-use vape market." Audrey Wong, CEO, Zyre Brands Corp.
About Adastra Holdings Ltd.
Founded in 2018 and formerly known as Phyto Extractions Inc., Adastra is a leading manufacturer and supplier of innovative ethnobotanical and cannabis science products designed for the adult-use and medical markets and forward-looking therapeutic applications. Adastra is renowned throughout Canada for its popular line of Phyto Extractions branded cannabis concentrate products available on shelves at over 1,400 adult-use retailers across the country. The Company also operates Adastra Labs, a 13,500 sq. ft. agricultural-scale Health Canada licensed facility located in Langley, BC., focused on extraction, distillation, and manufacturing of cannabis-derived products. Adastra has successfully taken steps in becoming a licensed cultivator, tester, extractor, and seller of controlled substances, including Psilocybin, Psilocin, MDMA, N, N-Dimethyltryptamine (DMT), 5- MeO-DMT, and LSD by applying for a Controlled Substances Dealer's Licence, which is under review by Health Canada. Pending Health Canada approval, Adastra is poised to be a drug formulation and development leader in this emerging sector. In addition, with the recent acquisition of 1225140 B.C. Ltd., doing business as PerceiveMD, Adastra operates a multidisciplinary centre for medical cannabis and psychedelic therapies, working alongside doctors and healthcare professionals within the regulated environment to help create efficacious remedies that address the actual needs of patients.
About Zyre Brands Corp.
The times are changing. Just think, Canadians born in the 2000's only know an adult world of legal cannabis. They won't know legacy when they're hitting their vape. Instead, they'll be looking for a brand that speaks to them. Zyre intends to grow with the evolving community as cannabis vapes become their go-to complement when unwinding, being creative, and enjoying good times. Zyre's Recline/Spotlight/Launch product lines are the sole Canadian vape-only brand in market, dedicated to helping consumers without knowledge of the legacy cannabis era, make decisions about what matters most to them; What activities should I use my vape for? Will I like how it tastes? This laser-sharp customer focus, combined with a regulated CPG-experienced executive leadership team, who have demonstrated success in scaling cannabis businesses and startups, sets Zyre to be the vape brand to watch. For those who want to join the journey find the Zyre community @ZyreLife on TikTok and Instagram and via their website:www.zyrelife.com
Forward-Looking Information
This news release contains forward-looking information within the meaning of Canadian securities legislation concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking information in this news release includes statements with respect to: anticipated future manufacturing under the Zyre brand in the Canadian adult-use market; further expansion of Adastra's market share in the growing vape and concentrates segment; and the future anticipated growth of the partnership with the Zyre brand. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. Except as required by law, the Company does not intend to update these forward-looking statements. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements, including, without limitation, adverse market conditions, and such other factors beyond the control of the Company and which are more fully described in the Company's annual and quarterly management's discussion and analysis and other filings made by the Company with Canadian securities regulatory authorities under the Company's profile at www.sedar.com. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. The Company does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.
Zyre Logo (CNW Group/Adastra Holdings Ltd.)
SOURCE Adastra Holdings Ltd.
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%SEDAR: 00007921E
For further information: Michael Forbes, CEO & Director, P: (778) 715-5011, E: michael@adastraholdings.ca
CO: Adastra Holdings Ltd.
CNW 07:30e 15-MAR-22
Adastra Announces Completed Submission of Controlled Substances Dealer's License Application
LANGLEY, BC, March 25, 2022 /CNW/ - Adastra Holdings Ltd. (CSE: XTRX) (FRA: D2EP) ("Adastra" or the "Company") a Health Canada Licensed cannabis company focused on processing, sales, organoleptic testing and analytical testing, is pleased to announce it completed the submission of its application for a Controlled Drugs and Substances Dealer's License ("Dealer's License") on March 23, 2022.
Adastra Holdings Completed Submission of Controlled Substances Dealer's License Application (CNW Group/Adastra Holdings Ltd.)
A Dealer's License would permit Adastra to perform the following activities:
- 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
Known as a high-capacity processor of cannabis concentrates and extract products, and co-manufacturer for sought after Canadian brands, Adastra has now successfully taken the first steps to become a licensed tester, extractor, and seller of controlled substances, including Psilocybin, Psilocin, MDMA, N, N-Dimethyltryptamine (DMT), 5-MeO-DMT, and LSD. When the Dealer's License is formally approved, Adastra expects to conduct the majority of this work out of its 13,500 square foot, purpose-built extraction, and production facility located in Langley, BC.
The Dealer's License application was originally filed in September, 2021 with a Health Canada audit performed on March 9, 2022. Adastra responded to Health Canada's request for more information and successfully submitted its Dealer's License application on March 23. Unless Health Canada comes back with an additional request for information, the Company expects the Dealer's License to be received by early April 2022.
"We see the expansion of our capabilities as a significant opportunity for Adastra's partners and shareholders," said Michael Forbes, Director and CEO, Adastra. "We are known in the cannabis industry as a reliable partner to many licensed producers and believe broadening the research, production and sale of more regulated products to emerging markets will strengthen our cash flow and profitability. We are excited for what the future holds at Adastra."
About Adastra Holdings Ltd.
Founded in 2018 and formerly known as Phyto Extractions Inc., Adastra is a leading manufacturer and supplier of innovative ethnobotanical and cannabis science products designed for the adult-use and medical markets and forward-looking therapeutic applications. Adastra is recognized as a high-capacity processor and co-manufacturer throughout Canada. Adastra is known for its popular line of Phyto Extractions branded cannabis concentrate products available on shelves at over 1,400 adult-use retailers across the country. The Company also operates Adastra Labs, a 13,500 sq. ft. agricultural-scale Health Canada licensed facility located in Langley, BC, focused on extraction, distillation, and manufacturing of cannabis-derived products. Adastra has successfully taken steps in becoming a licensed cultivator, tester, extractor, and seller of controlled substances, including Psilocybin, Psilocin, MDMA, N, N-Dimethyltryptamine (DMT), 5- MeO-DMT, and LSD by applying for a Controlled Substances Dealer's Licence, which is under review by Health Canada. Pending Health Canada approval, Adastra is poised to be a drug formulation and development leader in this emerging sector. In addition, with the recent acquisition of 1225140 B.C. Ltd., doing business as PerceiveMD, Adastra operates a multidisciplinary centre for medical cannabis and psychedelic therapies, working alongside doctors and healthcare professionals within the regulated environment to help create efficacious remedies that address the actual needs of patients.
Forward-Looking Information
This news release includes forward-looking information within the meaning of Canadian securities legislation, concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward-looking information in this news release includes statements with respect to the anticipated grant of the Dealer's License by Health Canada; the activities that the Company could conduct with a Dealer's License; the Company's expectations to conduct a majority of its work out of the extraction and production facility in Langley, BC upon approval of the Dealer's License; the effect that broadening the research, production and sale of more regulated products to emerging markets will have on the Company's cash flow and profitability; the changing regulations surrounding certain psychedelics and associated treatments; societal acceptance of psychedelic treatments; the ability of the Company to conduct testing, production, or sales of any compounds beyond cannabis; and the ability of the Company to work with partners such as medical doctors, pharmaceutical companies and pharmacies if it is permitted to conduct extraction research and develop psychedelic compounds. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward looking information, including: (i) adverse market conditions; (ii) risks inherent in the cannabis extraction sector in general; (iii) changes in regulations surrounding multiple controlled substances; and (iv) other factors beyond the control of the Company. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.
SOURCE Adastra Holdings Ltd.
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%SEDAR: 00007921E
For further information: Michael Forbes, CEO & Director, P: (778) 715 5011, E:
michael@adastraholdings.ca
CO: Adastra Holdings Ltd.
CNW 07:30e 25-MAR-22
Adastra Announces a Record Production Month and Management Changes
LANGLEY, BC, March 29, 2022 /CNW/ - Adastra Holdings Ltd. (CSE: XTRX) (FRA: D2EP) ("Adastra" or the "Company"), a Health Canada Licensed cannabis company focused on processing, sales, organoleptic and analytical testing, is pleased to report that its wholly owned subsidiary Adastra Labs Inc. achieved a record month of production volume in February, more than doubling outputs.
Adastra Announces a Record Production Month and Management Changes (CNW Group/Adastra Holdings Ltd.)
Hydrocarbon Extraction Output Increased by 24%
Since February, hydrocarbon extraction and processing run times more than doubled, increasing from an average of 2.5 runs per day to 6 runs per day, which equates to 48 kilograms of cannabis biomass extracted each day. In February, a total of 570.9 kilograms of cannabis biomass was extracted. 710.4 kilograms of cannabis biomass has been extracted in March, accounting for a 24% increase in production; this is representative of just one of Adastra's active processing lines.
The significant growth in cannabis biomass extraction was achieved by adding shifts and extending hours during the week. There has been an increase in demand for hydrocarbon-extracted shatter products for Adastra's 100% owned brand, Phyto Extractions, and fulfillments for the Company's co-manufacturing brands, along with the preparation for the launch of a highly-anticipated brand next month. The increased demand has led to seven hydrocarbon production runs per day, or approximately 56 kilograms of cannabis extracted daily. This does not account for Adastra's cryo-ethanol production line, and brings Adastra closer to achieving its goal of $5 million per month in sales by Summer 2022.
Filling and Packaging Increased by 75%
In February, the production team filled and packaged 100,511 vaporizer cartridges and finished products. In March, 75,875 cartridges were filled in two weeks, with an anticipated total of 118,346 cartridges to be filled and packaged by the end of this month.
Filling increased from 6,000 cartridges to 10,500 cartridges per day, accounting for a 75% increase in one month.
"I am extremely proud of our team's commitment and performance which has enabled us to achieve another record production month," said Michael Forbes, Chief Executive Officer and Director, Adastra. "With more SKUs launching and co-manufacturing brands coming to market this Spring and Summer, Adastra intends to invest in more processing equipment, along with automation hardware and software to drive costs down and increase production outputs."
Corporate Update
Adastra announces a recent update to its leadership structure with the departure of Chief Operating Officer, Corporate Secretary and Director, Donald Dinsmore, and the appointment of Michael Forbes as Corporate Secretary.
Donald Dinsmore commented, "After nearly four years of proudly working to build the Adastra team, I am parting ways to pursue other business endeavours. I look forward to what the future has to offer for both myself and the growth of Adastra."
"On behalf of the Board of Directors and the Company, I want to thank Donald for his guidance and support in growing Adastra," said Michael Forbes. "We wish him all the best in his next venture."
About Adastra Holdings Ltd.
Founded in 2018 and formerly known as Phyto Extractions Inc., Adastra is a leading manufacturer and supplier of innovative ethnobotanical and cannabis science products designed for the adult-use and medical markets and forward-looking therapeutic applications. Adastra is recognized as a high-capacity processor and co-manufacturer throughout Canada. Adastra is known for its popular line of Phyto Extractions branded cannabis concentrate products available on shelves at over 1,400 adult-use retailers across the country. The Company also operates Adastra Labs, a 13,500 sq. ft. agricultural-scale Health Canada licensed facility located in Langley, BC, focused on extraction, distillation, and manufacturing of cannabis-derived products. Adastra has successfully taken steps in becoming a licensed cultivator, tester, extractor, and seller of controlled substances, including Psilocybin, Psilocin, MDMA, N-Dimethyltryptamine (DMT), 5- MeO-DMT, and LSD by applying for a Controlled Substances Dealer's Licence, which is under review by Health Canada. Pending Health Canada approval, Adastra is poised to be a drug formulation and development leader in this emerging sector. In addition, with the recent acquisition of 1225140 B.C. Ltd., doing business as PerceiveMD, Adastra operates a multidisciplinary centre for medical cannabis and psychedelic therapies, working alongside doctors and healthcare professionals within the regulated environment to help create efficacious remedies that address the actual needs of patients.
Forward-Looking Information
This news release contains forward-looking information within the meaning of Canadian securities legislation concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward looking information because the Company can give no assurance that they will prove to be correct. Forward looking information in this news release includes statements with respect to: increased production volume; addition of processing, filling and packaging shifts; investment in equipment and automation hardware and software to drive costs down and increase production; anticipated new products, and the adoption thereof; goal of achieving $5 million a month in sales by Summer 2022; an anticipated total of 118,346 cartridges to be filled and packaged by the end of this month; and the timelines set out herein. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward looking information. Important factors that could cause actual results to differ materially from those expressed in the forward-looking information include: the availability of a qualified workforce; changes in regulations or licensing affecting the Company's business; reduced demand for cannabis and cannabis related products; reductions in the Company's retail space and store locations; and other factors beyond the control of the Company. These and all subsequent written and oral forward looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward looking statements.
This news release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about the Company's expected goal of achieving $5 million a month in sales by Summer 2022 and anticipated total of 118,346 cartridges to be filled and packaged by the end of this month, which is subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. The actual financial results of the Company may vary from the amounts set out herein and such variation may be material. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about the Company's anticipated future business operations. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.
Adastra Announces a Record Production Month and Management Changes (CNW Group/Adastra Holdings Ltd.)
SOURCE Adastra Holdings Ltd.
View original content to download multimedia:
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%SEDAR: 00007921E
For further information: Michael Forbes, CEO & Director, P: (778) 715 5011, E: michael@adastraholdings.ca
CO: Adastra Holdings Ltd.
CNW 07:30e 29-MAR-22
FORM 51-102F3
MATERIAL CHANGE REPORT
Item 1. Name and Address of Company
Adastra Holdings Ltd. (the "Company")
5451 - 275 Street
Langley, BC V4W 3X8
Item 2. Date of Material Change
March 24, 2022
Item 3. News Release
The news release was issued and disseminated via Cision on March 29, 2022 and filed on SEDAR at www.sedar.com.
Item 4. Summary of Material Change
The Company announced its goal of achieving $5 million per month in sales by Summer 2022 and that it anticipates filling and packaging a total of 118,346 vaporizer cartridges by the end of this month. The Company also announced management changes.
Item 5. Full Description of Material Change
5.1 Full Description of Material Change
The Company announced its goal of achieving $5 million per month in sales by Summer 2022 and that it anticipates filling and packaging a total of 118,346 vaporizer cartridges by the end of this month.
The Company also announced a recent update to its leadership structure with the departure of Chief Operating Officer, Corporate Secretary and director, Donald Dinsmore, and the appointment of Michael Forbes as Corporate Secretary.
This Material Change Report contains future-oriented financial information and financial outlook information (collectively, "FOFI") about the Company's expected goal of achieving $5 million a month in sales by Summer 2022 and anticipated total of 118,346 cartridges to be filled and packaged by the end of this month. The actual financial results of the Company may vary from the amounts set out herein and such variation may be material. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the FOFI. Important factors that could cause actual results to differ materially from those expressed in the FOFI include: the availability of a qualified workforce; changes in regulations or licensing affecting the Company's business; reduced demand for cannabis and cannabis related products; reductions in the Company's retail space and store locations; and other factors beyond the control of the Company. The Company and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such FOFI. FOFI contained herein was made as of the date hereof and was provided for the purpose of providing further information about the Company's anticipated future business operations. Readers are cautioned that the FOFI contained herein should not be used for purposes other than for which it is disclosed herein.
5.2 Disclosure for Restructuring Transactions
Not applicable.
Item 6. Reliance on subsection 7.1(2) of National Instrument 51-102
Not applicable.
Item 7. Omitted Information
None.
Item 8. Executive Officer
Michael Forbes, CEO, Corporate Secretary and Director
Telephone: (778) 715-5011
Item 9. Date of Report
March 30, 2022