Adastra Holdings Ltd. announced that it has filed its consolidated financial statements and related management discussion and analysis for the year ended December 31, 2021, both of which are available at www.sedar.com.
Michael Forbes, Chief Executive Officer of Adastra, commented, “2021 was a transformative year for Adastra. Having joined in May of 2021, I have seen considerable progress being made on many fronts – we acquired Phyto Extractions and PerceiveMD to vertically integrate our product reach; introduced several new, innovative cannabis products; entered new domestic markets; and created marketing and sales initiatives that have raised brand awareness among consumers and retailers. The team has worked diligently in restructuring and reducing costs giving us a solid foundation as we move forward.”
“Strategically, our focus remains on the following growth areas: medical product development and formulation; premium branded extraction products; dried flower products; drug formulation; sales force expansion; and global opportunities. One of the fastest growing cannabis product categories in both Canada and the U.S. is infused pre-rolls. We are excited to be launching these types of pre-rolls shortly. As we are succeeding with shatter SKU expansion, we plan to leverage our shelf space to sell to the provincial distributors and anticipate this category being a big contributor to our success.”
“Combined, our production rollout and market expansion strategies give us optimism for 2022 and beyond,” added Mr. Forbes. “We believe we have established a platform for profitable growth, with multiple revenue streams and differentiation in the marketplace. We look to leverage this momentum over the coming months to create sustainable value for our customers, partners and shareholders.”
Key 2021 Annual and Q4 Financial Highlights
- Achieved record revenues of approximately $5.6 million in 2021, compared to approximately $2.5 million in 2020 – an increase of 124%, demonstrating significant demand for Adastra’s in-demand cannabis concentrate brands and products.
- Achieved revenues of approximately $2.0 million in Q4 2021, compared to approximately $1.2 million in Q4 2020 – an increase of 67%.
- Achieved gross profit of approximately $1.9 million during the year ended December 31, 2021, compared to approximately $0.8 million during the year ended December 31, 2020 – an increase of 138%, noting that the current year included approximately $0.4 million of inventory write-downs.
- Reduced operating expenses to approximately $4.3 million during the year ended December 31, 2021 from approximately $7.9 million during the year ended December 31, 2020 due to a reduction in non-cash share based payment expenses, advertising and promotional costs and professional fees.
Key 2021 Annual and Q4 Corporate and Business Highlights
- Completed a full corporate rebrand of “Phyto Extractions Inc.” to “Adastra Holdings Ltd.” to better align the Company’s name and image as a comprehensive leader in cannabis extraction, distillation and product manufacturing.
- Acquired PerceiveMD, which opened the door for Phyto and Adastra to break new ground as providers of cannabis and psychedelic therapies to Canadians and people around the world.
- Launched Phyto Extractions Full Spectrum Vape Cartridge Line.
- Completed the acquisition of Phyto Extractions to drive accelerated growth and profitability through a comprehensive strategy of product innovation and enhanced retail engagement.
- Entered the market with the creation of THC-Free 99% Pure CBD Isolate.
- Expanded Phyto Extractions product line distribution into Yukon and Northwest Territories.
- Received licensing by Health Canada that will enable the Company to sell dried cannabis flower products provincially and territorially in Canada through authorized distributors and retailers.
- Refinancing of mortgage facility to provide incremental $1.0 million of liquidity allowing Adastra to expand production capabilities for future growth.
- Distillate production increased by 134 kg, or 90% in Q4 2021 from Q4 2020.
- Distillate production increased from 150kg in Q4 2020 to 284kg in Q4 2021.
- Shatter production increased to 50 kg in Q4 2021 – no shatter was produced in Q4 2020.
Results of Operations
For the three months and years ended December 31, 2021 and 2020
|
Q4 2021 |
Q4 2020 |
YTD 2021 |
YTD 2020 |
|
|
Revenue |
$ |
$ |
$ |
$ |
|
Cost of sales |
1,989,604 |
1,245,097 |
5,628,616 |
2,499,355 |
|
Gross profit |
(1,712,154) |
(625,053) |
(3,684,925) |
(1,713,77) |
|
Operating expenses |
277,450 |
620,044 |
1,943,691 |
785,581 |
|
Net income (loss) and comprehensive income (loss) |
(2,292,255) |
(426,180) |
(4,335,429) |
(7,950,595) |
|
(1,668,673) |
90,473 |
(2,749,939) |
(7,615,864) |
|
|
As of December 31, 2021 and 2020 |
||||
|
2021 |
2020 |
|||
|
$ |
$ |
|||
|
28,775,450 |
13,736,950 |
|||
|
1,041,467 |
60,000 |
|||
The above number have been subject to audit and reflect the consolidated results of the Company.
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-use and medical markets and forward-looking therapeutic applications. Adastra is recognized as a high-capacity processor and co-manufacturer throughout Canada. Adastra is known for its popular line of Phyto Extractions branded cannabis concentrate products available on shelves at over 1,400 adult-use retailers across the country. The Company also operates Adastra Labs, a 13,500 sq. ft. agricultural-scale Health Canada licensed facility located in Langley, BC, focused on extraction, distillation, and manufacturing of cannabis-derived products. or more information, visit: www.adastraholdings.ca.
