Adastra Holdings sells subsidiaries for $4M to streamline operations and cut debt

* Adastra Holdings (OTC:XTXXF [https://seekingalpha.com/symbol/XTXXF]) has entered agreements to sell all shares of its three wholly-owned subsidiaries Adastra Labs Holdings, 1178562 B.C., and Adastra Brands.
* The total transaction value is $4M, including $495,000 for Adastra Labs via a 12% interest-bearing promissory note, $3.5M for 1178562, settled through assumption of mortgage debt on its Langley, BC property and $5,000 in cash for Adastra Brands.
* A lease agreement has been signed for Adastra Labs to continue operating from the Langley facility, paying $35,000 per month for 13,000 sq ft of space.
* An IP licensing agreement allows Adastra Holdings to retain use of its existing brands and trademarks for nominal consideration.
* The divestiture is part of Adastra’s strategy to reduce debt, improve its balance sheet, and streamline operations.
* The transactions are expected to close shortly.
* Source: Press release [https://seekingalpha.com/pr/20259945-adastra-holdings-enters-into-agreements-to-sell-subsidiaries]

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* Financial information for Adastra Holdings  [https://seekingalpha.com/symbol/XTXXF/income-statement]