Adastra Submits Medical Sales License Application And Engages IR Labs To Provide Investor Relations Services

Adastra Holdings Ltd. XTXXF XTRX D submitted medical sales license application to Health Canada on April 1, 2022.

A medical sales license would permit Adastra to perform the following activities:

• Sell cannabis extracts to medical cannabis patients and licensed health practitioners;

• Develop products classified as cannabis extracts:

  • Inhaled (vaporizer cartridge and shatter),

  • Ingested (tincture, oil, capsule, soft gel and oral spray),

  • Other (suppository);

• Sell dried cannabis

"I am particularly excited about the future of cannabinoid-based medical treatments, especially the pharmaceutical distribution of these remedies," stated Michael Forbes, CEO, corporate secretary and director of Adastra. "Having strong ties to the medical community, I am confident that CBD, CBN and CBG specifically will play a significant role in the Canadian medical market in the near future. Adastra's ability to sell to the growing and established medical market positions the company to leverage its existing clinics for direct-to-patient sales and pharmacy sales soon. We are also uniquely positioned to tap into my pharmacy retail network in order to provide Adastra's medical cannabinoid products to patients across Canada."

Engagement with irlabs

Adastra has entered into an engagement letter dated effective April 8, 2022 with IR Labs Inc., whereby irlabs has agreed to provide the company with certain investor relations services in the areas of:

• capital markets advisory, including strategic advisory and introductions to investors and investment bankers

• the development and management of an investor relations and communications program, including public relations/media, social media and stakeholder relations

Either party may terminate the agreement at any time by providing the other party with 30 days' prior written notice of termination. In consideration for the services, the company has agreed to pay irlabs a monthly fee of $10,000 in cash, plus applicable taxes, due and payable on the last day of each month. The first payment will be $15,000 in cash, plus applicable taxes, due and payable on April 30, 2022. The company has also agreed to reimburse irlabs for all reasonable out-of-pocket expenses incurred in connection with irlabs performing the services. In addition, irlabs will bill a monthly charge totalling 3% of the Monthly Fee to cover subscription fees for market intelligence platforms, media monitoring, certain information retrieval services, and other ordinary course items that will not be billed to the company on an itemized basis. irlabs has agreed not to incur any aggregate disbursements greater than $500 a month without the company's approval.

Photo: Courtesy of CNW Group/Adastra Holdings Ltd.

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