Mr. Jon Edwards reports

ADASTRA HOLDINGS ANNOUNCES SALE OF PERCEIVE MD

Adastra Holdings Ltd. has entered a share purchase agreement, between Adastra Labs Inc., a wholly owned subsidiary of the company, and Majik Psilocybin Ventures Inc., effective Nov. 5, 2024.

Pursuant to the terms of the agreement, the vendor sold 100 Class A common shares and 100 Class B common shares in the capital of 1225140 B.C. Ltd. (Perceive MD), being all of the issued and outstanding shares of Perceive MD, to the purchaser.

The aggregate purchase price for the shares was nominal and the purchaser has also assumed all obligations of Perceive MD following closing of the transaction.

This transaction aligns with Adastra's broader strategic objectives as the company continues to focus on its core business areas and emerging market opportunities.

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.

We seek Safe Harbor.