Adastra Holdings Ltd. (CSE: XTRX) (FRA: D2EP) (“Adastra” or the “Company”) today filed its consolidated financial statements and related MD&A for the three and nine months ended September 30, 2021 and 2020. both available at www.sedar.com.
Third Quarter 2021 Highlights
- Turnover of approx. $1.8 million compared to approximately $1.2 million in Q2 2021, a sequential increase of 46%. Since the beginning of the year, revenues have increased $2.4 million or 190%, compared to last year.
- Distillate production (grams) increased 275 kg, or 190%, year-to-date and 56 kg, or 86%, in Q3 2021 compared to last year.
- Broken food production (grams) increased by 124 kg year-to-date and by 52 kg in Q3 compared to last year.
- Gross profit of approx. $934,000 in the third quarter of 2021 almost doubled from approximately $546,000 in the second quarter of 2021, with gross margins increasing from 44% to 52% over the same period.
- Net loss and overall loss reduced to approximately $208,000 compared to approximately $510,000 in Q2 2021. This operating loss was driven by professional fees incurred in connection with the two acquisitions made during the quarter and is expected to further reduce in Q4 2021.
- Net increase in cash of approximately $62,000 in the first nine months of 2021, despite higher spending $1 million on inventory.
- Refinancing of the mortgage facility to provide $1.0 million cash to the Company.
Michael Forbes, President and CEO of Adastra, commented, “I am very excited about the future of Adastra and how hard the team has worked to restructure and reduce costs. We are hitting our stride in the fourth quarter, positioning ourselves for rapid growth and positive cash flow. flows over the next quarter. We have a large national sales footprint which we leverage into new products, especially infused pre-rolls, which we believe can quickly turn newly introduced products into high revenue generators. I am confident that our sales will be fast and help us achieve $5 million monthly sales by the end of 2022.”
“Our business is showing strong momentum sequentially from the second quarter of 2021 through the third quarter of 2021,” Forbes added. “This translates into an 18% increase in sales to the provinces, including 107% growth in Ontario and entry during the quarter into yukon , our sixth province. Additionally, after introducing a new line of shatter vaporizer cartridges over the summer, we grew this category from zero revenue in Q1 to over $400,000 in Q3 2021, the growth we believe is driven by our dominant shelf space across Canada .”
“Strategically, we remain focused on the following growth areas: medical extraction, premium branded extraction products, floral products, drug formulation, sales force expansion and international. We are especially excited about the upcoming launch of infused pre-rolls, one of the fastest growing cannabis product categories in both Canada and the United States As we do with shatter, we plan to leverage our storage space to sell in the provinces, and we expect this category to eventually be a bigger contributor. »
“Combined, these efforts and these financial results give us optimism as we approach 2022,” Forbes concluded. “We believe we have established a platform for profitable growth, with multiple revenue streams and market differentiation. We seek to leverage this platform over the coming months to create lasting value for our customers, partners and shareholders.
About Adastra Holdings Ltd.
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 and medical markets and patient-oriented therapeutic applications. ‘to come up. Adastra is renowned throughout Canada for its popular line of Phyto Extractions branded cannabis concentrates available on the shelves of over 1,400 adult retailers nationwide. The Company also operates Adastra Labs, a 13,500 square foot Health Canada-licensed farm-scale facility located in Langley, BC ., focused on the extraction, distillation and manufacture of cannabis-derived products. Adastra has now successfully taken the first steps to becoming a licensed cultivator, tester, extractor and seller of controlled substances including Psilocybin, Psilocin, MDMA, N, N-Dimethyltryptamine (DMT), 5-Meow- DMT and LSD by applying for a controlled substance dealer license, which is under review by Health Canada. Pending Health Canada approval, Adastra is poised to become a leader in drug formulation and development in this emerging area. Additionally, with the recent acquisition of 1225140B .VS. Ltd., doing business as PerceiveMD, Adastra operates a multidisciplinary center for medical cannabis and psychedelic therapies, working alongside physicians and healthcare professionals in a regulated environment to help create effective remedies that meet the real patient needs.
Disclaimer Regarding Forward-Looking Information
All statements, other than statements of historical facts, included herein are forward-looking statements subject to risks and uncertainties. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “shall”, “should”, “could” or “could” occur or be achieved and other similar expressions. Forward-looking statements in this press release include statements regarding, but not limited to, the anticipated reduction in operating loss in the fourth quarter of 2021; how the combination of revenue growth through provincial sales and strategic acquisitions, coupled with reduced overhead, can drive sustainable profitability for the company; the expected benefits of the company’s plan to leverage its storage space to sell its infused pre-rolls in the provinces and any expected revenue growth therefrom; and other general statements regarding the Company’s profitable growth platform. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements, including, without limitation, adverse market conditions and other factors beyond the Company’s control and which are further described in the Company’s annual and quarterly MD&As and other documents filed by the Company with Canadian authorities securities under the Company’s profile at www.sedar.com. The new strain of coronavirus, COVID-19, also poses new risks that are currently indescribable and immeasurable. Forward-looking statements are based on management’s estimates and opinions as of the date the statements are made. The Company undertakes no obligation to update forward-looking statements, except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.
SOURCE Adastra Holdings Ltd.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/December2021/02/c8350.html