Adastra Accelerates Growth; 152% Increase in Shipment Volume

• Record shipment volume of 379,343 grams and 1,300+ orders during January and February 2023
• 152% increase in shipment volume for the first two months of 2023 over the monthly average shipments of 2022
• Adastra engages Hybrid Brand Management to expand sales coverage and product sell-through in BC, AB, SK, MB and ON
• Adastra in-house brand Endgame Extracts' concentrates SKUs rank 2, 3, 4, 5, 7 and 8 of the top selling concentrates in British Columbia¹

LANGLEY, BC / ACCESSWIRE / March 16, 2023 / Adastra Holdings Ltd. (CSE:XTRX)(FRA:D2EP) ("Adastra" or the "Company"), a leading cannabis company focused on processing, adult-use and medical sales, organoleptic testing and analytical testing, announces 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 ("Hybrid") 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.

"Adastra already has a strong presence across Canada for products we are licensed to sell, and we're focused on covering more ground to build on the momentum we have achieved over the past year," said Michael Forbes, CEO of Adastra. "The Hybrid team has deep relationships and understands the market, which we believe will further strengthen our position in key regions by promoting our in-house brands' products in existing retailers and accelerating adoption of current and new SKUs in other retailers."

"We're thrilled to be working with Adastra," said Scott Adair CEO of Hybrid Brand Management. "Adastra produces some of the best and most competitive cannabis products on the market, and we intend to help them become one of the leading producers in the country. Our team intends to grow their sales substantially by building distribution, boosting retailer and consumer engagement, and building brand equity."

Adastra products are currently stocked in approximately 1,600 retailers. With 30 vaporizer cartridge SKUs and 16 concentrate SKUs, such as: shatter, THCa diamonds, sugar wax, full spectrum extract cartridges, and one infused pre-roll SKU.

Adastra currently has 26 Phyto Extractions products and 24 Endgame products on the market with 7 more being developed and prepared for commercialization. The Phyto Extractions and Endgame products are available for sale in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, Yukon, Northwest Territories, and Nunavut.

Adastra's in-house brand Endgame Extracts' concentrates SKUs are ranking as 2, 3, 4, 5, 7 and 8 of the top selling concentrates in British Columbia¹.

The Company intends to continue to work with retailers to enhance customer retention and lifetime value on existing products, whilst carefully assessing any new potential product development opportunities that may arise from either institutional or public clients, depending on the product category and relevant licence conditions.

^{1 Source: Headset data March 15, 2023}

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 1,600 locations across Canada, Adastra's Phyto Extractions and Endgame Extracts brands are now well established with a solid 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.

Contacts

Michael Forbes
CEO, Corporate Secretary & Director
(778) 715-5011
michael@adastraholdings.ca

Alyssa Barry
Media & Investor Relations
(604) 997-0965
ir@adastraholdings.ca

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable securities legislation in Canada concerning the business of the Company. Forward-looking information is based on certain key expectations and assumptions made by the management of the Company. Although the Company believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that they will prove to be correct. Forward looking information in this news release includes statements regarding, but not limited to: the intention to accelerate product and brand presence across Canada; the intention to expand the presence and effectiveness of the Company's sales force; the belief that the appointment of Hybrid will generate growth for the Company; the expectation that Hybrid will grow the Company's sales substantially by building distribution, boosting retailer and consumer engagement, and building brand equity; that additional products are being developed and prepared for commercialization; the Company intends to continue to work with retailers to enhance customer retention and value; and the intention to work closely with public and private stakeholders to serve patient needs that can reduce harm. There are numerous risks and uncertainties that could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. Important factors that could cause actual results to differ materially from those expressed in the forward-looking information include: changes in the laws and underlying regulations governing controlled substances and regulated products in Canada; the availability of a qualified workforce; changes in regulations or licensing affecting the Company's business; patients' access to products containing controlled substances and licensed products and other factors beyond the control of the Company. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company does not intend to update these forward-looking statements.

SOURCE: Adastra Holdings Ltd.