- Generated record gross revenues of
$5.6 million in 2021, representing 124% growth YOY - Maintained a strong capital position with
$28.8 million of assets, and$6.4 million of liabilities
"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
"Combined, our production rollout and market expansion strategies give us optimism for 2022 and beyond," added
- 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 forAdastra'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 endedDecember 31, 2021 , compared to approximately$0.8 million during the year endedDecember 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 endedDecember 31, 2021 from approximately$7.9 million during the year endedDecember 31, 2020 due to a reduction in non-cash share based payment expenses, advertising and promotional costs and professional fees.
- 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 andNorthwest Territories . - Received licensing by
Health Canada that will enable the Company to sell dried cannabis flower products provincially and territorially inCanada through authorized distributors and retailers. - Refinancing of mortgage facility to provide incremental
$1.0 million of liquidity allowingAdastra 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.
For the three months and years ended
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 | ||||
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.
The Company is also pleased to announce that it has cancelled 10 million shares that were voluntarily returned to treasury for no valuable consideration by certain founders of the Company. The share cancellation was effective
As a select number of founders voluntarily surrendered the shares for no valuable consideration, the share cancellation did not constitute an "issuer bid" or an "offer to acquire" as defined in National Instrument 62‐104 – Take‐Over Bids and Issuer Bids. The total number of the issued and outstanding common shares of
Founded in 2018 and formerly known as
This news release contains forward-looking information within the meaning of Canadian securities legislation concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward looking information because the Company can give no assurance that they will prove to be correct. Forward looking information in this news release includes statements regarding, but not limited to: the Company's plans to grow in the following areas: medical product development and formulation, premium branded extraction products, dried flower products, drug formulation, sales force expansion and global opportunities; the expected benefits of the Company's plan to leverage its shelf space to sell its pre-rolls to the provincial distributors and any expected revenue growth therefrom; and other general statements regarding the Company's platform for profitable growth and creation of sustainable value for customers, partners and shareholders. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward looking information. Important factors that could cause actual results to differ materially from those expressed in the forward-looking information include: the availability of a qualified workforce; changes in
regulations or licensing affecting the Company's business; reduced demand for cannabis and cannabis related products; reductions in the Company's retail space and store locations; and other factors beyond the control of the Company. These and all subsequent written and oral forward looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward looking statements.
SOURCE
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