Phyto Extractions Inc. - which has changed its name to Adastra Holdings (CSE:XTRX, FRA:D2EA) Ltd. with effect from September 1, 2021 - said it has acquired, indirectly through its wholly-owned subsidiary Adastra Labs Inc., all of the issued and outstanding shares in the capital of 1225140 B.C. Ltd., doing business as PerceiveMD, under the terms of a share purchase agreement dated August 10, 2021.
In consideration for the acquisition of PerceiveMD, the company paid to the vendors, on a pro-rata basis, an aggregate purchase price of $2.3 million consisting of $10,000 by Adastra as a non-refundable deposit on the execution of the share purchase agreement; and $2.290 million by way of the issuance by Phyto, on behalf of Adastra, of 2,513,720 unrestricted common shares in the capital of Phyto.
In a statement, Phyto Extractions COO Donald Dinsmore commented: "The acquisition of PerceiveMD opens the door for Phyto and Adastra to break new ground as providers of cannabis and psychedelic therapies to Canadians and people around the world."
READ: Phyto Extractions announces a name change to Adastra Holdings
"We believe that the use of these drugs has the potential to revolutionize healthcare. Leveraging Adastra's high-capacity, world-class laboratory and PerceiveMD's lean digital patient care platform will establish Phyto as a leader in this exciting field of drug development and patient care," Dinsmore added.
The company's acquisition of PerceiveMD constitutes a "related party transaction" as Michael Forbes, Phyto's chief executive officer, is also a director and controlling shareholder of PerceiveMD.
Separately, Phyto Extractions said its shares will begin trading under the new name of Adastra Holdings (CSE:XTRX, FRA:D2EA) Ltd. with a new CUSIP number from today, September 1, 2021. The XTRX trading symbol will remain the same.
Founded in 2014, 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 award-winning agricultural-scale cannabis extraction, distillation, and product manufacturer, located in Langley, British Columbia. Operating out of a 13,500 square foot Health Canada Licensed Standard Processing facility, the company produces and distributes cannabis-derived products, designed for medical cannabis and forward-looking therapeutic use.
As a leading supplier, Phyto Extractions currently distributes its product line to 1400-plus adult-use retailers and a web-based medical platform, CannMart Inc., across the country seeking to provide consistent, quality concentrate products and alternative treatment options to patients.
Contact the author at jon.hopkins@proactiveinvestors.com