Canadian Weed Company Adastra Reports Triple-Digit Q1 Revenue Growth, What's Behind The Figures?

Cannabis producer Adastra Holdings Ltd. XTRX (FRA: D2EP) XTXXF reported on Tuesday financial results for the three months ended March 31, 2023.

During the first quarter of 2023, the Langley, British Columbia-based cannabis concentrates manufacturer garnered CA$ 9.5 million ($6.98 million) in gross revenues, representing an increase of 315% year-over-year and 39% quarter-over-quarter.

Michael Forbes, the company's CEO, attributed the triple-digit revenue growth to the market demand for its products and its nationwide presence.

"Our ownership of both the legendary legacy brand, Phyto Extractions, and the dynamic in-house brand, Endgame Extracts, has solidified our position in the Canadian concentrate market with numerous top-selling products," Forbes said.

Q1 Financial Highlights

• Net revenue totaled CA$5.77 million, compared to CA$2.29 in the same period of fiscal 2022.
• Total operating expenses slightly increased year-over-year to CA$1.88 million from CA$1.69 million.
• Net loss and comprehensive loss amounted to CA$308,626, down from CA$908,091 in the first quarter of last year.
• Gross profit totaled CA$1.7 million, up by 102% year-over-year.
• As of March 31, 2023, the company had CA$33.5 million in total assets, CA$15.6 million in total liabilities and CA$1.93 million in cash.

Adastra's Plan To Produce Cocaine

Adastra got the green light from Health Canada to produce and sell cocaine in March, but B.C. Premier David Eby said he was unaware of the move, reported CityNews Vancouver.

Eby explained that he opposes the decision allowing Adastra to not only interact with up to 250 grams of cocaine but to possess, produce, sell and distribute up to 1,000 grams of psilocybin and psilocin as well.

CEO Forbes said at the time the company, which supplies over 1,400 cannabis retailers nationwide with products, "proactively pursued the amendment to our Dealer's License to include cocaine back in December 2022."

"Harm reduction is a critically important and mainstream topic, and we are staying at the forefront of drug regulations across the board," he added.

Photo: Courtesy of (NikolayFrolochkin and ganjaspliffstoreuk by Pixabay