- B.C. law firm Slater Vecchio LLP is proposing a class-action lawsuit on behalf of investors citing Adastra’s claims that it was authorized to sell cocaine
- The suit claims the company artificially inflated its stock price in breach of B.C.’s Securities Act through “inaccurate public representations”
- The company previously announced that it had received approval “to include cocaine as a substance that the company can legally possess, produce, sell and distribute.”
- The class-action suit has not been certified, and none of the claims have been proven in court
- Adastra is a B.C.-based manufacturer and supplier of ethnobotanical and cannabis science products designed for the adult-use and medical markets
- Adastra Holdings Ltd. (XTRX) opened trading at C$0.67
Adastra Holdings (XTRX) is facing a proposed class-action lawsuit citing its claim it had received authorization from Health Canada to sell cocaine.
In a statement dated Feb. 22, Adastra Holdings announced that Adastra Labs received approval “to include cocaine as a substance that the company can legally possess, produce, sell and distribute.”
Following the company’s initial announcement, shares of Adastra Holdings more than doubled to $2 per share.
On March 3, Adastra clarified its original statement, saying it may only produce 1,000 grams of psilocybin and 250 grams of cocaine in 2023 and that the Dealer’s License does not permit Adastra to sell coca lea, psilocybin or cocaine to the general public.
Slater Vecchio LLP said it had filed a proposed securities class action on behalf of investors who suffered losses claiming the company artificially inflated its stock price in breach of B.C.’s Securities Act through “inaccurate public representations” regarding its ability to sell cocaine.
Adastra is a B.C.-based manufacturer and supplier of ethnobotanical and cannabis science products designed for adult-use medical markets and forward-looking therapeutic applications.
Shares of Adastra Holdings Ltd. (XTRX) opened trading at C$0.67.