Adastra Holdings Ltd says ‘strong demand’ drove record Q1 revenue and gross profit

Adastra Holdings (CSE:XTRX) Ltd reported record revenue and gross profit for the three months ended March 31, 2022, which the company said demonstrated “significant demand” for its cannabis concentrate brands and products. .

BC’s leader in innovative ethnobotanical and cannabis science products reported first-quarter revenue of $2.3 million, a 288% increase over the prior year , bringing new brands to market, adding to its co-manufacturing portfolio and increasing its production capacity.

“The year got off to a record start with strong momentum for the year ahead. We delivered record revenue and gross profit, while maintaining a strong capital position,” said company CEO Michael Forbes, in a statement.

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“Our focus remains on implementing production deployment, generating multiple revenue streams and creating market expansion strategies. We made proactive progress in all of these areas, which ultimately resulted in a solid foundation for the continued growth of our business,” he added.

The company posted gross profit of $827,713 in the first quarter, up from $105,411 a year ago, a jump of 685%, while operating expenses in the three months rose to 1 $695,682 versus $467,771 in 1Q 2021.

During the quarter, Adastra launched the Endgame Extracts brand, with four initial SKUs, to the British Columbia Liquor Distribution Branch to increase its revenue stream. The products were sold out within 48 hours, the company noted.

It also ordered automated pre-roll equipment for the production of infused pre-roll and submitted medical sales license and controlled substance dealer license applications in line with its market expansion strategy.

“We look forward to building on our reputation as a leader in cannabis and patient-focused psychedelics to deliver on our commitment to creating long-term value for our customers, partners and shareholders,” Forbes said.

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 therapeutic applications aimed at the future.

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