An anonymous director reports

ADASTRA HOLDINGS LTD. ANNOUNCES 10:1 SHARE CONSOLIDATION

Adastra Holdings Ltd. is seeking approval from the Canadian Securities Exchange for the consolidation of the company's issued and outstanding common shares at a ratio of one postconsolidation common share for every 10 preconsolidation common shares.

The consolidation will reduce the number of issued and outstanding common shares of the company from 55,970,547 common shares to approximately 5,597,055 common shares. Proportionate adjustments will be made to the company's outstanding options.

No fractional common shares will be issued pursuant to the consolidation. Any fractional common share resulting from the consolidation will be rounded to the nearest whole number of postconsolidation common shares, with any fractional interest representing 0.5 or more common share entitling holders thereof to receive one whole postconsolidation common share. In calculating such fractional interests, all common shares registered in the name of each registered shareholder will be aggregated.

Subject to the approval of the consolidation by the CSE, the common shares are expected to begin trading on the CSE on a consolidated basis on or around Oct. 15, 2024, and will continue to trade on the CSE under the trading symbol XTRX. New Cusip and ISIN numbers will be assigned to the common shares following the consolidation.

National Securities Administrators Ltd., acting as the transfer agent for the consolidation, has mailed a letter of transmittal to the company's registered shareholders in respect of the consolidation. Registered shareholders will be required to send their certificate(s) representing preconsolidation common shares of the company, along with a properly executed letter of transmittal, to NSA in accordance with the instructions provided in the letter of transmittal. Beneficial shareholders (that is, non-registered shareholders) who hold their common shares through an intermediary such as a bank, trust company, securities dealer or broker should note that these intermediaries may have their own procedures for processing the consolidation which may differ from those described above for registered shareholders. Non-registered shareholders who have questions should contact their intermediary for more information.

A copy of the letter of transmittal will be available on the company's profile on SEDAR+ and will also be posted on the company's website.

Pursuant to the provisions of the Business Corporations Act (British Columbia) and the articles of the company, the consolidation was approved by way of resolutions passed by the board of directors of the company. The company has applied to the CSE for approval of the consolidation.

About Adastra Holdings Ltd.

Adastra has become one of Canada's leaders in the supply and manufacturing of ethnobotanical and cannabis products for lawful adult use. It serves medical markets and engages in forward-looking therapeutic applications. With cannabis concentrate products sold through retailers at more than 2,000 locations across Canada, the brands Phyto Extractions and Endgame Extracts are well established with a growing distribution presence. As a Health Canada-licensed facility, the Langley facility specializes in extraction, distillation and manufacturing of a range of cannabis-derived products. Adastra partners with health care professionals and practitioners within the regulated environment to create products suitable for the medical cannabis market, with the ultimate aim of addressing the needs of patients.

We seek Safe Harbor.