Adastra Holdings Ltd. announced that the Company’s wholly-owned subsidiary Adastra Labs Inc. (“Adastra Labs”) has received its flower sales license amendment from Health Canada effective December 17, 2021 (the “Flower Sales License”). The Flower Sales License will allow Adastra Labs to sell dried cannabis flower products provincially and territorially in Canada through authorized distributors and retailers.
“Receiving our flower sales license is a significant milestone and provides Adastra with an additional pathway to pursue higher-margin revenue growth within the Canadian cannabis market,” said Donald Dinsmore, COO & Director. “With the ability to be a direct supplier, we are now even better positioned to leverage the strong awareness and existing shelf space of our popular Phyto Extractions brand, as well as our national inside sales force, by offering an expanded portfolio of other products targeted at the cost-conscious and the premium craft consumers that will include pre-rolls and dried flower offerings.”
Dried cannabis flower is in high demand from provincial distributors and medical clients. According to Statistics Canada, dried flower sales accounted for nearly three-quarters of legal recreational cannabis sales in the first half of 2021, worth over $1.3 billion in sales.1
Michael Forbes, Chief Executive Officer of Adastra, commented, “Adastra is in a great position to maximize profits through the continued reduction in biomass costs and the little need for capital expenditure. I am particularly excited about the upcoming launch of infused pre-rolls, as they are the fastest-growing segment in the flower category. With national shelf space to leverage, the facility, and the team to execute, these new flower SKUs will propel Adastra into record sales and profitability.”