Adastra Holdings Ltd. XTXXF XTRXD was served with a civil suit filed with the Supreme Court of British Columbia under the Class Proceedings Act, RSBC 1996, c. 50 alleges that the company’s press release dated February 22, 2023 misrepresented certain material facts that mislead the plaintiff in the complaint. The lawsuit also names the company’s subsidiary Adastra Labs Inc. and the CEO of the company Michael Forbes.

The press release related to the receipt of Health Canada Approval for the amendment to include cocaine in its controlled substances license, and so does Adastra published a clarification this press release.

The company disputes the allegations in the lawsuit, particularly that the press release was misleading, and intends to vigorously defend itself against these allegations should the class action lawsuit be allowed.

No specific amount of damage is being claimed at this time.

Record shipment volume

Separately, the company announced record shipping volumes for January and February 2023 and plans to continue accelerating product and brand presence across Canada.

In January and February 2023, Adastra shipped a record volume of 379,343 grams of cannabis products, achieving this result with over 1,300 orders from a range of resellers who purchased a variety of products including the famous THC range and products below endgame Brand, specifically Astro Pink, Kush Mints, Tiger Cake x KK Mints, Double Hitter, and at least ten other popular SKUs. This shipment volume is a 152% increase over average monthly shipments in 2022.

Adastra has also gotten involved Hybrid branding to expand its sales coverage and product uptake in British Columbia, Alberta, Saskatchewan, Manitoba and Ontario through regular in-store activations and employee product training. Hybrid serves approximately 2,800 cannabis retailers in Canada.

price action

Shares of Adastra were trading up 71.42% at $0.84 per share at the time of writing Thursday morning.

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