Adastra Holdings Ltd. (OTCPK:XTXXF) (CSE:XTRX) (FRA:D2EP) has received its Controlled Drug and Substances Dealer's License on August 24, 2022. This license allows Adastra to process psilocybin and psilocin, the active compounds derived from psychedelic mushrooms.
Under the dealer's license, Adastra can possess up to 1,000 grams of psilocybin and psilocin at any time and can transfer the extracted material to other companies who hold a valid dealer's license. Adastra intends to utilize its in-house analytical testing lab, Chemia Analytics, to validate and develop its extraction processes, to optimize and enhance efficiency ahead of any future potential regulatory modifications to the existing psychedelics framework.
As the market matures to include regulations for other compounds, such as MDMA, LSD, 5-MeO-DMT and Ketamine, Adastra plans to include these substances in future dealer's license amendments, positioning itself to leverage clinic and patient demand. When approved, the company will be permitted to process and formulate a variety of psychedelic compounds, increasingly used and sought-after by patients and healthcare practitioners to combat a variety of physical and mental ailments.
Legacy Supply Agreement
The company has entered into an agreement, with a third party, whereby Adastra has the right and option to terminate an exclusive amended license agreement dated December 4, 2020 between the third party and 1204581 B.C. Ltd. ("Phyto"), a wholly-owned subsidiary of Adastra which was acquired by Adastra on September 15, 2021.
The Phyto license …