Adastra Holdings (CSE:XTRX) Ltd. said 2022 has started strongly for the company as it signed co-manufacturing agreements to produce high-potency, pure hydrocarbon-extracted concentrate products, continuing to expand its portfolio of brand partners, and growing its dossier of stock-keeping units (SKUs) in the Canadian market.
The Langley, British Columbia-based company said this brings it closer to exceeding its goal of $5 million per month in sales by summer 2022.
In an update on its facility expansion, Adastra said it 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. The company has committed to purchase critical equipment that will effectively quadruple its hydrocarbon extraction capabilities, it added.
READ: Adastra Holdings says its subsidiary Adastra Labs receives flower sales license from Health Canada
"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,” CEO Michael Forbes said in a statement.
“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 (business-to-business) customers,” he added.
Additionally, the company said it expects to commission a high-capacity automated pre-roll machine in April 2022. Once commissioned, it said this equipment will enable it to produce upwards of 10 million dried flower and infused pre-rolls a quarter, allowing it to tap into an extremely fast-growing market segment.
It said it 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.
Adastra also informed investors that Forbes and the company’s chief operating officer, Donald Dinsmore, recently purchased shares of the company on the open market, the details of which have been set out in their respective SEDI reports.
"This is another opportunity to show investors that Adastra management is committed to creating long-term shareholder value,” Forbes concluded.
“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.”
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.
Contact the author at stephen.gunnion@proactiveinvestors.com