Adastra Holdings (CSE:XTRX) Ltd said it has positioned itself for future growth, having received a key controlled drug and substances dealer's license on August 24 this year which allows the company to process psilocybin and psilocin, the active compounds derived from psychedelic mushrooms.
"This is another significant step forward in the next phase of Adastra's goal to become a leader in alternative, plant-based treatments and remedies for physical, mental health and optimal functioning," noted Michael Forbes, CEO of Adastra, in a statement.
"We believe our dealer's license offers Adastra a preemptive advantage over our peers, by having our processes for the extraction and formulation of psilocybin validated before any future potential changes in regulations, enabling us to stay ahead," he added.
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"Having foresight over what we can control today - standardization of our processes and training of our personnel - we believe positions Adastra for continued growth as we expand our capabilities and revenue streams," Forbes concluded.
With the license, Adastra can possess up to 1,000 grams of psilocybin and psilocin at any time and can transfer the extracted material to other companies that hold a valid dealer's license.
Adastra plans to use its in-house analytical testing lab Chemia Analytics to validate and develop its extraction processes, to optimize and enhance efficiency ahead of any potential regulatory modifications.
As the market matures to include regulations for other compounds such as MDMA, LSD, 5-MeO-DMT and ketamine, Adastra plans to include these substances in future amendments to its dealer's license, it told investors.
"When approved, the company will be permitted to process and formulate a variety of psychedelic compounds, increasingly used and sought-after by patients and healthcare practitioners to combat a variety of physical and mental ailments," the company added.
Adastra is a manufacturer and supplier of innovative ethnobotanical and cannabis science products designed for adult-use, medical markets and therapeutic applications.
Adastra is recognized as a high-capacity processor and co-manufacturer throughout Canada. The company acquired 100% of the legacy-built brand Phyto Extractions in September last year, and also operates Adastra Labs, a 13,500 square foot agricultural-scale Health Canada-licensed facility in Langley, British Columbia.
Contact the writer at giles@proactiveinvestors.com