This Cannabis Company Grew Revenues 222%

It takes a special business to overcome the endless challenges that face our economy today.

But that is exactly what Adastra Holdings (Canada: XTRX) is accomplishing.

Despite high inflation, rising interest rates, and fragility in the financial markets, Adastra continues its pursuit of dominating the Canadian cannabis market.

And as a result, the Company is raking in sales like never before.

In this article, we’ll explore how Adastra achieved this record-breaking growth, what it plans to do moving forward, and why it is unlike any cannabis company you’ve ever seen.

If you want to capitalize on one of North America’s fastest-growing markets, you’ll want to understand what Adastra Holdings has to offer.

What is Adastra Holdings?

Adastra is not your typical cannabis company by any means.

Through its Adastra Labs division, the Company combines the art and science of cannabis extraction to create masterfully crafted cannabis extracts that are bursting with potency and flavor.

To do so, Adastra strategically built a 13,500-square-foot extraction facility, located in British Columbia, where its dynamic team conducts research and development at scale using its cutting-edge technology.

This includes a five-step process that involves cryo-freezing and reclaiming ethanol, then heating, distilling, and formulating its premium cannabis extracts.

To ensure that its products exceed customer expectations, Adastra follows a careful due diligence process, whereby the Adastra Analytics team searches for impurities and additives that may impact its quality, while also adhering to the strict Health Canada guidelines.

This extensive effort sets an industry precedent with Adastra being a household name in the Canadian cannabis market.

Today, Adastra’s concentrates, under its in-house Endgame Extracts brand, rank as the 3rd, 4th & 5th best-selling concentrates in British Columbia.

What’s more, the Company is penetrating the medical market through its wholly-owned subsidiary, PerceiveMD, whose digital patient care platform allows Adastra to reach new customers and help those seeking cannabis and psychedelic-assisted therapies.

With both its Endgame Extracts and 100%-owned Phyto Extractions products being sold in over 1,600 retail stores across Canada, Adastra is already a key player in this revolutionary industry.

Adastra By The Numbers

Demand for Adastra’s products is increasing exponentially.

But to truly understand how successful the Company has been, you need to dive into its 2022 numbers.

Over the past year, Adastra has taken important steps to improve its financial standing and strengthen its competitive position.

In 2022 alone, it achieved record gross revenues of $18.1 million and gross profits of $6.1 million, representing a 222% and 214% increase, respectively, from 2021.

Not only that, but the Company also became cash flow positive in the year prior with its cash flow from operations reaching $1.3 million, compared to an operating loss of $1.1 million in 2021.

​CEO Michael Forbes attributes this astronomical growth to, “the resilience and adaptability of our team, as we continue to navigate evolving market dynamics with agility and innovation.”

Fortunately, it appears that Adastra is more than capable of overcoming a difficult market as its 2023 results have been no different.

Earlier this year, Adastra reported record shipment volumes of 379,343 grams and 1,300+ orders in January and February.

This represented a 152% increase in shipment volume, compared to its monthly average shipments in 2022.

However, the Company didn’t stop there as Forbes reported another “record-breaking month of shipments in April” as well.

As you can see, the Company is on a strong trajectory, with ample tailwinds fueling its growth.

But this is only the beginning for Adastra.

The Future of Adastra

While its historical results are impressive, Adastra has already moved on from its past and is determined to expand and strengthen its presence in the marketplace.

To do so, the Company is continuing to roll out new products and penetrate new markets.

For example, Adastra released new SKUs under Endgame Extracts that included infused pre-rolls, infused flowers, THCa diamonds & sauce.

And in Ontario, Alberta, Nova Scotia, and Newfoundland, 19, 20, 1, and 1 new SKUs were accepted for listing as of Q1 2023., respectively.

Currently, Adastra operates in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Yukon, Northwest Territories, Nunavut, and Nova Scotia.

But as mentioned, they are shortly launching in Newfoundland as well.

To help them further expand into these markets, Adastra also partnered with Hybrid Brand Management to increase sales coverage and product sell-through in BC, AB, SK, MB, and ON.

Hybrid serves roughly 2,800 cannabis retailers in Canada, making it an excellent choice for future expansion.

When discussing its 2023 outlook, CEO Michael Forbes highlighted, “We are rapidly expanding into Eastern Canada, driven by our commitment to reaching new customers and patients. By actively developing our medical portal, we aim to onboard patients efficiently, unlocking the true value of PerceiveMD. Our relentless pursuit of excellence propels us forward on a path of success and continued growth.”

CFO Lachlan McLeod also noted, “Adastra continues to improve processes and find efficiencies to increase growth, lower operating costs and drive the Company to profitability.”

In all, these efforts are bound to pay off tremendously as Adastra continues to innovate, evolve, and improve its offerings for customers, while also engaging new activities to reach a broader market.

Who Leads Adastra?

By now we’ve mentioned CEO & Director Michael Forbes once or twice.

But if you want to truly understand how Adastra achieved its success, it largely depends on the efforts made by him and his team.

Forbes is no rookie when it comes to developing successful businesses in the cannabis and medical industries.

With a Bachelor’s in Pharmaceutical Sciences from the University of British Columbia, Forbes leveraged his skillset to found and operate several clinics, pharmacies, wellness centers, a cannabis production facility, and more.

These include 3 methadone clines, 5 cannabis medical clinics (Concord Medical Clinic), the Sitka Weed Works cannabis production facility, 14 cannabis retail stores (Choom Cannabis), the Ageless Living Wellness Centre and Ageless Living Expo, and Canada’s first Biohacking Centre, among others.

What’s more, Forbes is a recipient of the prestigious Quantum Shift fellowship award, which is awarded each year to 40 of Canada’s most promising entrepreneurs, and backed by KPMG, the Ivey Institute of Entrepreneurship, TD Commercial Bank, and the Globe and Mail.

Combined, these efforts and achievements have translated well for Michael with him now focused on creating the high-caliber business that is Adastra Holdings today.

With him at the helm, Adastra’s opportunities are endless.

Wrapping It Up

There is no more intriguing company in the Canadian cannabis market today.

Adastra Holdings (Canada: XTRX) is a proven business, with a differentiated business model, that enables it to generate high ROI and value for shareholders.

Moreover, with an experienced management team led by CEO Michael Forbes, Adastra is poised to continue evolving at an unprecedented rate.

While the Company is only in its early stages, it is clear that they are more than capable of competing and becoming a top player in the Canadian market and beyond.

If you plan to invest in the emerging cannabis industry, be sure that you add Adastra Holdings to your watchlist to make the most of this exciting opportunity.

We can’t wait to see what the future has in store for Adastra.

To learn more about Adastra Holdings (Canada: XTRX), check out its investor presentation below.

ADASTRA (Canada: XTRX.CN)

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