Adastra Holdings completes acquisition of Phyto Extractions
by CM Staff
The acquisition is expected to be immediately accretive to Adastra.
The Acquisition provides additional detail on the strategy to leverage the Phyto brand to drive accelerated growth. The Company expects $5 million in monthly sales by July 2022 (CNW Group/Adastra Holdings Ltd.)
LANGLEY — Adastra Holdings Ltd. announced the completion of its previously-announced acquisition of privately held 1204581 B.C. Ltd., doing business as Phyto Extractions, the owner of the intellectual property rights for the Phyto Extractions brand. With complete control of the popular Phyto Extractions brand asset, Adastra intends to leverage Phyto Extractions’s product development experience, coast-to-coast sales force, and existing relationships with over 1,400 retail stores across Canada to drive growth and profitability for an expanded portfolio of Phyto Extractions branded cannabis products. The acquisition is expected to be immediately accretive to Adastra.
“As a cannabis retail operator, I recognize the tremendous value Phyto Extractions will bring to Adastra,” said Michael Forbes, Chief Executive Officer of Adastra. “Phyto Extractions has already gained the trust of over 1,400 retailers and consumers across Canada, representing over 70% of all regulated Cannabis retail stores. I am confident that Adastra will leverage this position in the Canadian cannabis market to accelerate overall growth over the coming quarters as we enter new product categories. Adding flower and other SKUs, we expect to achieve $5 million in monthly sales by July 2022.”
Having completed its acquisition of Phyto Extractions, Adastra intends to try and drive accelerated growth and profitability through a comprehensive strategy of product innovation and enhanced retail engagement. Key elements include:
New Product Introduction: Adastra plans to increase the number of provincially listed Phyto Extractions branded SKUs in the Canadian market from 18 to 48 over the next year by expanding its offering into new product categories that meet the evolving preferences of Canadian cannabis consumers.
Optimize In-Store: With full ownership of the Phyto Extraction brand asset, Adastra intends to engage in a targeted retail engagement strategy to optimize its existing in-store presence.
New Store Penetration: Adastra intends to continue to expand its retail footprint by leveraging the strength of the Phyto Extractions brand and its coast-to-coast sales force across seven provinces and territories.
Sales Force Expansion: Adastra employs a highly-skilled inside sales force of 8 salespeople across Canada that it intends to continue to scale and support as the business grows.
Operating Synergies: Adastra expects to realize operating synergies on unified management through leveraging Adastra Labs’ state-of-the-art 13,000 sq. ft. agricultural scale facility.
