Adastra Holdings Ltd. XTXXF XTRXD has been served with a civil claim filed in the Supreme Court of British Columbia pursuant to the Class Proceedings Act, R.S.B.C. 1996, c. 50 alleging that the company's press release of February 22, 2023 misstated certain material facts which mislead the plaintiff in the claim. The suit also names the company's subsidiary Adastra Labs Inc. and the company's CEO Michael Forbes.
The press release was regarding its receipt of Health Canada approval for the amendment to include cocaine under its controlled substances license, and Adastra also released a clarification of that press release.
The company denies the allegations in the claim and specifically that the press release was misleading and intends to vigorously defend against these allegations should the class action be certified.
Currently, no specific amount of damages is claimed.
Record Shipment Volume
Separately, the company announced record shipment volume for January and February 2023 and plans to further accelerate product and brand presence across Canada.
During January and February of 2023, Adastra shipped a record volume of 379,343 grams of cannabis products and achieved this result with over 1,300 orders, across a range of resellers who bought a variety of products, including its famous THC range and products under its Endgame brand, most notably "Astro Pink", "Kush Mints", "Tiger Cake x KK Mints", "Double Hitter" as well as at least ten other popular SKUs. This shipment volume is an increase of 152% over the average monthly shipments during 2022.
Adastra has also engaged Hybrid Brand Management to expand its sales coverage and product sell-through in British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario, with regular in-store activations and staff product education sessions. Hybrid serves approximately 2,800 cannabis retailers in Canada.
Price Action
Adastra shares were trading 71.42% higher at $0.84 per share at the time of writing Thursday morning.
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