Adastra Holdings Confirms Current Management

Rhea-AI Summary

Adastra Holdings (CSE: XTRX) (FSE: D2E0), a cannabis processor and producer of concentrates, has issued a clarification regarding its current management structure following a review by the British Columbia Securities Commission. Lachlan McLeod resigned as Interim CEO on September 26, 2024, and as CFO and Corporate Secretary on October 5, 2024.

McLeod continues to provide financial services through Stornoway Consulting Corp, under an agreement effective until May 31, 2025. The scope includes assistance with financial statements preparation, annual budget planning, and support for external auditors. Currently, management activities are being handled by the board of directors: Jon Edwards, Andrew Hale, and Paul Morgan. The company is actively seeking candidates to fill the CEO, CFO, and Corporate Secretary positions.

Positive

• None.

Negative

• Loss of key executives (CEO, CFO, and Corporate Secretary) with positions still vacant
• Temporary management structure with board members handling operations
• Reliance on external consulting for critical financial functions

Langley, British Columbia--(Newsfile Corp. - January 20, 2025) - Adastra Holdings Ltd. (CSE: XTRX) (FSE: D2E0) ("Adastra" or the "Company"), a leading cannabis processor and producer of two top Canadian concentrates brands with a focus on product innovation and commercialization for adult-use and medical markets, wishes to confirm the current management of the Company.

As a result of a review by the British Columbia Securities Commission, the Company is issuing the following press release to clarify our disclosure.

In news releases dated September 26, 2024 and October 8, 2024, the Company announced that Lachlan McLeod had resigned as Interim Chief Executive Officer ("CEO") effective September 26, 2024, and as Chief Financial Officer ("CFO") and Corporate Secretary effective October 5, 2024.

Mr. McLeod continues to provide financial services to the Company as an external consultant. On October 15, 2024, the Company entered into an agreement (the "Stornoway Agreement") with Stornoway Consulting Corp. ("Stornoway"), an entity controlled by Mr. McLeod. Pursuant to the Stornoway Agreement, Stornoway provides certain financial consulting services to the Company on a part-time basis, including: (i) assisting management with the preparation and filing of quarterly and annual financial statements with the Company's external advisors; (ii) assisting management with the preparation of the Company's annual budget; and (iii) supporting the Company's external auditors with its annual audit. The Stornoway Agreement is effective until May 31, 2025, unless extended by mutual agreement of the parties.

The management activities of the Company are currently being performed by the Company's board of directors, consisting of Jon Edwards, Andrew Hale and Paul Morgan. The Company is in the process of identifying candidates to fill the roles of CEO, CFO and Corporate Secretary.

About Adastra Holdings Ltd.

Adastra has become one of Canada's leaders in the supply and manufacturing of ethnobotanical and cannabis products for lawful adult-use. It serves medical markets and engages in forward-looking therapeutic applications. With cannabis concentrate products sold through retailers at more than 2,000 locations across Canada, Adastra's Phyto Extractions and Endgame Extracts brands are now well established with a growing distribution presence. As a Health Canada licensed facility, it specializes in extraction, distillation and manufacturing of a range of cannabis-derived products. Adastra partners with healthcare professionals and practitioners within the regulated environment to create products suitable for the medical cannabis market, with the ultimate aim of addressing the needs of patients. For more information, visit: www.adastraholdings.ca.

For additional information, please contact:
(778) 715 5011
info@adastraholdings.ca

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This news release includes certain "forward-looking information" as defined under applicable Canadian securities legislation, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding the search for a permanent full-time CEO, CFO and Corporate Secretary. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information.

Investors are cautioned that forward-looking information is not based on historical fact but instead reflects management's expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although the Company believes that the expectations reflected in such forward-looking information are reasonable, such information involves risks and uncertainties, and undue reliance should not be placed on such information, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the Company. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking information are the following: regulatory and licensing risks; changes in consumer demand and preferences; changes in general economic, business and political conditions, including changes in the financial markets; the global regulatory landscape and enforcement related to cannabis, including political risks and risks relating to regulatory change; compliance with extensive government regulation; public opinion and perception of the cannabis industry; and the risk factors set out in the Company's management's discussion and analysis for the nine months ended September 30, 2024, filed with Canadian securities regulators and available on the Company's profile on SEDAR+ at www.sedarplus.ca.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors that could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only as of the date of this news release. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237901

FAQ

When did Lachlan McLeod resign from his positions at Adastra Holdings (XTRX)?

Lachlan McLeod resigned as Interim CEO on September 26, 2024, and as CFO and Corporate Secretary on October 5, 2024.

Who is currently managing Adastra Holdings (XTRX) after the executive departures?

The company's board of directors, consisting of Jon Edwards, Andrew Hale, and Paul Morgan, is currently performing management activities.

What is the duration of Adastra Holdings' (XTRX) agreement with Stornoway Consulting?

The agreement with Stornoway Consulting is effective until May 31, 2025, unless extended by mutual agreement.

What services does Stornoway Consulting provide to Adastra Holdings (XTRX)?

Stornoway provides financial consulting services, including assistance with financial statements preparation, annual budget planning, and support for external auditors.