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Adastra Labs (CSE:XTRX) and Muskoka Grown collaborate on cannabis processing

Cannabis
CSE:XTRX
31 July 2020 13:43 (EDT)

Adastra Labs (XTRX) has entered into a split tolling agreement with fellow cannabis company, Muskoka Grown.

Under the terms of the agreement, Muskoka Grown is providing Adastra Labs with cannabis biomass, which the company will process into distillate. Adastra is able to produce cannabis extract through carbon dioxide extraction and secondary distillation.

Extracts and distillates can be incorporated into a variety of Cannabis 2.0 products. These include edibles, beverages, topicals, tinctures, vape cartridges, and others.

Adastra Labs and Muskoka Grown will share the high-grade cannabis distillate which is produced from the processing.

Adastra Labs’ CEO, Andy Hale, commented on how the companies’ agreement is progressing thus far.

“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 kilograms 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,” he said.

Muskoka Grown’s founder and CEO, David Grand, also commented on the agreement, and the benefits it has brought to the company.

“While Muskoka Grown remain focused on producing freshly packaged dried products, we are thrilled to provide out high-grade cannabis as biomass for processing.

“We value this strategic partnership that has allowed us an opportunity to expand our revenue streams,” he said.

Adastra Labs (XTRX) is down 1.11 per cent and is trading at C$0.89 per share at 3:16pm EDT.

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