Adastra Labs : Progresses Toward Iconic Phyto Extractions Brands Acquisition

LANGLEY, BC / ACCESSWIRE / October 7, 2020 - Adastra Labs Holdings Ltd. (CSE: XTRX) (FRANKFURT: D2EP) ('Adastra') a Health Canada Licensed cannabis processing and analytical testing services Company, is pleased to announce completion of initial due diligence for the acquisition of Phyto Extractions Brands ('Phyto Extractions').

Following the Letter of Intent ('LOI') announced September 18, 2020 between Adastra and a BC-based company, Adastra has completed its initial due diligence for the acquisition of the Phyto Extractions set of cannabis concentrates brands. The LOI is non-binding and negotiation is currently underway towards a definitive agreement for the acquisition of all of the assets of the private company. The terms will be announced once the definitive agreement is signed.

'We are excited to progress the due diligence for the Phyto Extractions brand acquisition. We have requested a third party valuation be conducted to complete the terms negotiation that has been ongoing. We expect this valuation to be completed shortly and look forward to advancing towards a definitive agreement.' Stephen Brohman, CFO Adastra.

Under the terms of the LOI, Adastra and Phyto Extractions are negotiating the purchase of intellectual property and existing licensing agreements. Phyto Extractions has trademarked 21 design and wordmarks associated with their cannabis concentrates and two for CBD-related concentrates in Canada, as well as submitted trademark protection in the U.S.

Phyto Extractions products have been available in the regulated Canadian cannabis market since December 2019. A total of 11 vaporizing SKUs are currently offered and Phyto Extractions recently introduced two live resin SKUs, along with a unique High-Terpene Full Spectrum Extract (HTFSE) CO₂ terp sauce SKU.

'With strong penetration in BC, AB, MB, SK and ON, Phyto Extractions is now available, on average, in approximately 28% of the licensed retailers in those provinces and rapidly growing. For example, in BC, over 50% of the licensed retailers stock Phyto Extractions products. The exceptionally high brand recognition and loyalty are converting to strong market presence and market-share in the recently legalized cannabis concentrates category.'- Andy Hale, CEO Adastra.

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

Andrew Hale
Chief Executive Officer
Adastra Labs Holdings Ltd.
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Stephen Brohman
Chief Financial Officer
Adastra Labs Holdings Ltd.
Phone: [phone]
Email: [e-mail]

Address:5451 275^th Street, Langley, BC V4W 3X8
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