Adastra Labs : Announces Private Placement Financing

June 18, 2020 - Adastra Labs Holdings Ltd. (CSE: XTRX) (FRANKFURT: D2EP) ('Adastra', 'XTRX', or the 'Company') a Health Canada Licensed cannabis processing and analytical testing company announced today that it will be conducting a non-brokered private placement of units (the 'Units') at a price of $0.30 per Unit for gross proceeds of up to $1,000,000 (the 'Offering'), subject to the acceptance of over-allotments as described below.

Each Unit will be comprised of one common share in the capital of the Company (a 'Common Share') and one common share purchase warrant of the Company (a 'Warrant'). Each Warrant shall be exercisable to acquire one Common Share (a 'Warrant Share') at a price per Warrant Share of $0.50 for a period of 24 months from the date of issuance.

Provided that the closing price of the Common Shares exceeds $0.70 per share for 10 consecutive trading days on the CSE, then the expiry date of the Warrants will be accelerated at the Company's option to the date that is 30 days after the date the Company provides notice by press release to the holders of the Warrants.

The Units to be issued under the financing will be subject to a four month and one day hold period. There is no minimum offering amount. The Company may close the Offering in one or more tranches. The Company may pay commissions or finder fees on the amount raised through the Offering. The Company has authorized the acceptance of any over allotted subscriptions under the Offering subject to the condition that the total Offering after taking into account any over allotments shall not exceed $2,000,000. The terms of the financing are subject to applicable securities laws and regulatory approval.

Additionally, the Company announces that it has entered into agreements to settle outstanding indebtedness of $543,715 through the issuance of 1,941,840 common shares of the Corporation at a deemed price of $0.28 per common share (the 'Debt Settlement'). The common shares issued in connection with the Debt Settlement are subject to a hold period that expiring four months and one day from the date of issuance.

The Company intends to use the proceeds of the Offering to fund equipment expansion, marketing expenses and for general working capital.

About Adastra Labs Holdings Ltd.

Adastra Labs Holdings Ltd. is a Langley, BC-based cannabis company with a co-located Health Canada Licensed Standard Processing Facility and Analytical Testing Laboratory. Adastra can produce cannabis extract through supercritical CO₂ extraction and secondary distillation as well as conduct in-process quality testing. Such extracts can easily be incorporated into edibles, beverages, topicals, tinctures, vape cartridges and other products that will serve the Canadian medical and adult-use cannabis markets.

www.adastralabs.ca

On behalf of the Board of Directors of the Company,

Andrew Hale
Chief Executive Officer
Adastra Labs Holdings Ltd.
Phone: [phone]
Email: [e-mail]
Address: 5451 275^thStreet, Langley, BC V4W 3X8
Telephone: [phone]
Fax: 844-874-9893