B2B Cannabis and Hemp Extraction Services
This Adastra Labs Holdings Ltd. profile is part of a paid investor education campaign.*
Adastra Labs Holdings Ltd. is in the process of becoming a standard cannabis processor and analytical testing laboratory in Canada. The company has applied for its standard processing license which it expects to receive in the near term and has received an analytical testing license from Health Canada. When the company obtains both licenses, Adastra Labs intends to become a one-stop-shop for cannabis concentrates and value-added cannabis products.
With the cannabis extracts market expected to reach $2.1 billion by 2020, CBD extracts are part of the fastest-growing segment in the Canadian cannabis market. This is further compounded by Health Canada, who has announced that new cannabis products will be legally available in Canada by mid-December. These products include vaporizers, edibles, beverages and topicals.
Adastra Labs owns a 13,000-square-foot former food packaging facility in Langley, British Columbia. The company is currently retrofitting the building, which has been designed with good manufacturing practices (GMP) compliance in mind. The facility is expected to produce significant amounts of cannabis and hemp oil for the Canadian wholesale medical and recreational markets.
The processing facility is also expected to feature a co-located in-process testing lab. As the facility is built, the company intends to pursue its EU-GMP certification, which is necessary to enter the European cannabis market. The lab is expected to provide a full-spectrum of third-party analytical testing for licensed producers.
Adastra Labs intends to offer a suite of value-added products to its B2B clients and partners under several existing consumer-focused brands. The company currently offers its clients a high-THC or CBD distillate, bulk vape formulations, capsule formulations and water-soluble formulations. To date, Adastra Labs has signed a supply agreement with SugarBud Craft Growers Corp. (TSXV:SUGR).
A highly diverse team of scientists, consultants and leaders lead Adastra Labs with strong collective experience in quality control and regulatory compliance in the cannabis industry. Notable members of the team include CEO Andy Hale, Quality Assurance Person Donald Dinsmore and Head of Laboratory Priyanka Nalawade.
Adastra Labs’ Company Highlights
- Adastra Labs aims to be a leading standard cannabis processor.
- The company’s B2B strategy bridges the gap between cannabis cultivators and extraction.
- Adastra Labs plans to be a one-stop-shop for cannabis concentrates.
- The company owns a 13,000-square-foot facility in Langley, British Columbia that is being built to GMP standards.
- Supply agreement in place with SugarBud.
- A highly diverse team of scientists, consultants and leaders lead Adastra Labs with strong collective experience in quality control and regulatory compliance in the cannabis industry.
Adastra Labs’ Product Formulations
Looking to capitalize on the second round of cannabis legalization, Adastra Labs has developed several product types that the company intends to offer to its B2B clients. Adastra Labs’ value-added products include:
- A high THC or CBD distillate
- Bulk vape formulations
- Capsule formulations
- Water-soluble formulations
Adastra Labs is also looking to expand its product offerings to include cannabinoid isolates in the future.
Adastra Labs’ Processing Facility
Adastra Labs owns a 13,000-square-foot former food packaging facility in Langley, British Columbia. The building is less than an hour’s drive to the Vancouver airport or downtown Vancouver. The facility is one of the first buildings in the Lower Mainland to be zoned specifically for cannabis processing and testing.
Adastra Labs is currently retrofitting the building, which has been designed with GMP compliance in mind. Once complete, the facility is expected to process over 400,000 kilograms of dried cannabis per year and over 30,000 liters of highly-refined cannabis oil distillate. The facility is also expected to host a 13,200-square-foot secure storage facility that can accommodate over 7,500 kilograms of dried cannabis while even leaving room for finished products.
Adastra Labs’ processing facility is also expected to feature a co-located in-process testing lab. As the facility is built, Chemia intends to pursue its ISO 17025 certification to compliment the GMP certification that the rest of the facility is adhering to. The Chemia lab is expected to provide a full-spectrum of third-party analytical testing for licensed producers, including:
- Potency testing
- Cannabinoid profiling
- Pesticide screening
- Mycotoxin analysis
- Heavy metal analysis
- Microbial contamination
The company plans to package Chemia’s testing services with its white label and toll processing services, creating a time-saving and cost-effective solution for clients.
Adastra Labs’ Business Model
Toll Processing, White Label Manufacturing and Cannabis Testing
Adastra Labs offers white label and toll processing services to cultivators who choose to outsource their cannabis extraction and processing needs. Through its white label and toll processing services, the company can offer its clients turnkey solutions that fit each client’s specific needs.
Adastra Labs also offers third-party cannabis testing services for Canadian licensed producers through the company’s state-of-the-art testing lab. Third-party control testing is a requirement all licensed producers must adhere to.
To date, Adastra Labs has signed a supply agreement for dried flower and trim with SugarBud. Under the terms of the agreement, SugarBud is expected to provide a minimum of 900,000 grams of premium dry cannabis flower to Adastra Labs over a nine-month period. Adastra Labs hopes to further its relationship with SugarBud moving forward.
Adastra Labs’ Management Team
Andy Hale, MBA, BSAE, PMP — CEO, Co-Founder and Director
Andy Hale has 35 years of experience leading high-performing technical teams in regulated environments spanning the US Navy, where he commanded three nuclear-powered submarines, to a $3 billion Canadian Government shipbuilding portfolio at Seaspan Shipyard.
Steve Brohman, CPA, CA — CFO
Steve Brohman has extensive experience as CFO and Director of various public and private companies in Canada, the US and Europe, focusing on CSE, TSXV and OTC-listed companies. He has led public and private capital raises, acquisitions and executive management committees.
Blaine Bailey, CPA, CGA, B.Comm. — Director
Blaine Bailey is an experienced Independent Director, Chief Financial Officer and Controller for public and private companies in Canada. He has extensive mining sector, public and private company CFO experience. He was the former Controller for Nabob Coffee Co., one of Canada’s largest coffee companies.
Georges E. Routhier – Director
Georges Routhier is the CEO at PipeDreemz Inc., a premier cannabis licensing regulations consulting company responsible for the successful licensing of nearly 30 percent of cannabis licensed producers across Canada over the past six years. He has had a lengthy and distinguished career within the high technology sector.
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