Adastra Holdings (CSE:XTRX) Ltd said its CEO Michael Forbes has published a letter to shareholders, in which he has laid out the company’s progress and established strategic areas of focus for the future after roughly a year on the job.
Chief among those goals is manufacturing alternative plant-medicine treatments such as capsules and tinctures for sale in the medical market. To do that, Forbes wants to maximize the potential of Adastra's wholly-owned PerceiveMD platform, which assesses patients seeking alternative treatments and provides documentation to enable access.
The company has submitted a Medical Sales Licence application to Health Canada, which will allow it to manufacture and sell medical cannabis product formats to the Canadian medical market, Forbes said.
“We believe PerceiveMD addresses the gap that exists in the market today for a patient access platform,” the CEO wrote. “Having this online platform in-house provides us with an advantage over many of our peers to meet the existing demand that we believe is underserved today.”
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Meanwhile, Adastra launched its Endgame Extracts brand in British Columbia earlier this year and achieved a 100% case sell-through in 48 hours. Endgame is currently ranked third and fourth for its shatter sales in the province, and launches are planned in Alberta and Ontario, Forbes said.
In terms of market trends, Forbes has his eye on new premium cannabis extract product innovations, specifically citing THCA diamonds (high potency extracts), single-source shatter, full-spectrum vape cartridges and dried flower products.
Single-source shatter “is a growing product category that we are pleased to serve with our institutional knowledge and expertise,” Forbes said, noting that pre-rolls are currently the fastest growing segment in the Canadian cannabis market, while infused pre-rolls have outpaced dried flower-only pre-rolls in legal US markets.
“We see significant opportunity to continue to grow our pre-roll business (pre-rolls, infused pre-rolls, and larger quantity flower) for our Endgame and Phyto brands,” he added.
“We have demonstrated our ability to stay ahead of consumer trends by proactively amending our licenses and expanding our capabilities to meet the ever-evolving preferences of consumers and the companies we partner with,” Forbes said. “In particular, we are seeing a significant movement towards alternative medicine. Having been involved in the cannabis industry for more than a decade, combined with my experience running pharmacies and wellness clinics, I have seen firsthand the positive impact and efficacy of cannabis for certain patients, as well as the increasing popularity of alternative treatments and remedies.”
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.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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