Phyto Extractions Inc. is a holder of a federal licence to process and sell cannabis extract products, edibles, and topicals under the Cannabis Act. The Company is pleased to announce that it has submitted a licence amendment to Health Canada that, if approved, will enable Phyto to sell dried cannabis flower to provincially authorized distributors and retailers and registered medical patients.
The licence amendment would allow Phyto’s wholly owned Health Canada licenced subsidiary, Adastra Labs Inc. (“Adastra“), to leverage its agricultural product fulfillment capabilities to package, produce and sell dried flower based products across Canada, which would open the pathway to higher profit margins by eliminating the necessity to sell to other licence holders.
Michael Forbes, CEO and a director of Phyto, states, “The ability to sell dried cannabis products directly to provincial distributors and retailers represents a major milestone in the development of Phyto’s growth-oriented business plan. Direct sales will increase margins and provide critical access to retail space as flower and pre-rolls represent the largest cannabis market segments in Canada while bringing more eyes to our brands.”
Dried Cannabis products are in high demand from provincial distributors and medical clients. Sales continue to dominate the legal Canadian recreational market, accounting for roughly three quarters of all sales and totaling over $2 billion in 2020.1
“We intend to leverage Phyto’s brand awareness and sales momentum in the concentrates space to commercialize dried cannabis products under the brand to drive topline revenue with these high gross margin products,” said Donald Dinsmore, COO, Corporate Secretary and a director of Phyto.
About Phyto Extractions™ and Adastra Labs Inc.
Founded in 2014, Phyto Extractions™ built a successful reputation as a household name in cannabis concentrates among consumers and retailers alike. Adastra Labs Inc. was founded in 2018 and is an agricultural-scale cannabis extraction, distillation, and product manufacturer, located in Langley, BC. Operating out of its 13,000 sq. ft. Health Canada Licensed Standard Processing facility, now named Phyto Extractions Inc., the Company produces and distributes cannabis-derived products, designed for medical cannabis and forward-looking therapeutic use. As a leading supplier, Phyto Extractions™ currently distributes its product-line to 1400+ adult-use retailers and a web-based medical platform, CannMart Inc., across the country seeking to provide consistent, quality concentrate products and alternative treatment options to patients.To learn more about the Phyto Extractions™ team, please watch the following video: https://youtu.be/mtC9QicyeuI