Proactive Research Analyst Ed Stacey presents his research on Adastra, a cannabis company based in British Columbia with a strong presence in the recreational market. The company recently reported quarterly earnings showing very strong revenue growth.
Adastra operates a 13,000 sq ft extraction facility with a full suite of capabilities for performing super-critical CO2 extraction, ethanol extraction and hydrocarbon extraction.
Revenues were +119% versus Q3 2020 and gross profit margin increasing to 52% versus 44% in the previous quarter. Furthermore, during the quarter, Adastra completed the 100% acquisition of the Phyto Extractions brand of cannabis concentrates, which provides Adastra with an in-house brand with wellestablished reputation among consumers.