Core Points - Adastra Holdings Ltd. has completed the sale of its wholly-owned subsidiaries, including Adastra Labs, 1178562 B.C. Ltd., and Adastra Brands, to 1538634 B.C. Ltd. for a total consideration of $4,000,000 [1][2] - The sale includes $495,000 for Adastra Labs, $3,500,000 for 1178562 through the assumption of mortgage debt, and $5,000 for Adastra Brands [2] - The transactions are expected to strengthen the Company's balance sheet, reduce debt, and streamline operations [4] Financial Details - The total consideration for the subsidiaries was $4,000,000, broken down as follows: $495,000 for Adastra Labs, $3,500,000 for 1178562, and $5,000 for Adastra Brands [2] - The lease agreement for 13,000 square feet of warehouse and office space will generate $35,000 per month for Adastra Labs Inc. [3] Operational Impact - The Company will continue to operate from its existing facility through a leaseback agreement and retains rights to its established brands and trademarks via an intellectual property licensing agreement [4][3] - Adastra Holdings is recognized as a leader in the supply and manufacturing of ethnobotanical and cannabis products in Canada, with a distribution presence in over 2,000 retail locations [5]