Adastra Holdings (CSE:XTRX) Ltd said it has struck a new wholesale agreement with micro-cultivator Sitka Weed Works Inc that will see it package and sell Sitka’s craft cannabis directly to provinces.
Sitka operates the largest micro park in Canada, with 51 micros that specialize in growing craft cannabis with high THC percentages.
Under the agreement, Sitka will supply its cannabis to Adastra, which will package, excise and sell finished goods to provincial wholesalers. Adastra told investors that it expects to start shipments in the coming months.
READ: Adastra Holdings expands Phyto Extractions product sales into Canada’s Yukon territory
"Our partnership with Sitka assures the supply of high-quality biomass, enabling us to manufacture and sell premium strain-specific cartridges derived from Sitka Cannabis,” Adastra’s COO Donald Dinsmore said in a statement.
“The business arrangement is more than a supply agreement; it represents an important step as Adastra seeks to build upon the already popular Phyto Extractions brand, which we now own outright. Strong partnerships with organizations like Sitka are key to delivering on our innovation strategy for premium products, which are highly sought after by Canadian consumers," he added.
Dinsmore noted that Sitka’s micro-cultivation park is home to some of British Columbia's best legacy growers' crops, which “aligns well with Adastra’s in-house brand Phyto Extractions' institutional knowledge of the industry and product landscape.”
Stuart Leith, Sitka’s facility manager, called Adastra an “emerging leader in premium cannabis distribution and commercialization.”
“(We) expect our relationship with them to help us grow our presence in this expanding market," Leith added.
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.
Its line of Phyto Extractions-branded cannabis concentrate products is available on shelves at over 1,400 adult-use retailers across the country.
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