Adastra Announces Muskoka Grown Split Tolling Agreement

LANGLEY, BC / ACCESSWIRE / July 31, 2020 / Adastra Labs Holdings Ltd. (CSE:XTRX)(FRANKFURT:D2EP) ("Adastra") a Health Canada Licensed cannabis processing and analytical testing services Company, is pleased to announce a tolling agreement with Muskoka Grown Ltd. ("Muskoka Grown").

"We are pleased to have received two shipments from Muskoka Grown, a small batch, high quality cannabis cultivator. We are fortunate to be able to leverage Muskoka Grown's quality growing with over 900 KG of quality cannabis flower and trim received to date under a split tolling agreement. Muskoka Grown's cannabis has been producing high-quality distillate and we look forward to continuing this tolling agreement." – Andy Hale, CEO Adastra.

Under the terms of the tolling agreement, Muskoka Grown provides cannabis biomass for toll processing by Adastra into cannabis distillate. The two Companies share the high-grade cannabis distillate produced.

"While Muskoka Grown remains focused on producing freshly packaged dried products, we are thrilled to provide our high grade cannabis as biomass for processing. We value this strategic partnership that has allowed us an opportunity to expand our revenue streams." David Grand, CEO & Founder, Muskoka Grown.

About Adastra Labs Holdings Ltd.

Adastra Labs Holdings Ltd. is a Langley, BC-based cannabis company with a co-located Health Canada Licensed Standard Processing Facility and Analytical Testing Laboratory. Adastra can produce cannabis extract through supercritical CO2 extraction and secondary distillation as well as conduct in-process quality testing. Such extracts can easily be incorporated into edibles, beverages, topicals, tinctures, vape cartridges and other products that will serve the Canadian medical and adult-use cannabis markets.

www.adastralabs.ca

About Muskoka Grown Limited
Muskoka Grown is a community-focused cannabis company committed to providing high-quality craft cannabis products, building meaningful connections with surrounding communities and positively contributing to the conservation of our natural surroundings. Muskoka Grown operates a purposely-built 65,000 sq. ft. cannabis cultivation and processing facility in Ontario. The company is passionate about cultivating in small-batch grow rooms and bringing freshly packaged cannabis to legal recreational adult-use markets.

For more information about Muskoka Grown, please visit our website, www.muskokagrown.com

For investor inquiries please contact:

Broidy Rondelet
Corporate Development and Investor Relations
roidyrondelet@muskokagrown.com

Andrew Hale
Chief Executive Officer
Adastra Labs Holdings Ltd.
Phone: (778) 715-5011
Email: andy@adastralabs.ca

Stephen Brohman
Chief Financial Officer
Adastra Labs Holdings Ltd.
Phone: (778) 715-5011
Email: steve@adastralabs.ca

Address: 5451 275th Street, Langley, BC V4W 3X8
Telephone: 778-715-5011
Fax: 844-874-9893

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION: This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate, among other things, to: Adastra's expectations concerning fulfilling its obligations under its agreements, purchase orders and receiving the economic benefits of such agreements or purchase orders. Forward-looking statements are 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 statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, Adastra assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.

SOURCE: Adastra Labs Holdings Ltd.

ReleaseID: 599529