In a recent move, Health Canada has granted British Columbia-based cannabis company Adastra Labs permission to possess, produce, sell, and distribute cocaine, psilocybin, and psilocin. This news comes after the company received its Controlled Drug and Substances dealer’s license for the psychedelics in August 2022, which was then amended in February 2023 to include cocaine. This article explores the details of Adastra’s approval and what it means for the cannabis and drug industries.
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Overview of Adastra’s Approval
Adastra Labs has received approval from Health Canada to possess, produce, sell, and distribute cocaine, psilocybin, and psilocin.
The company was granted its Controlled Drug and Substances dealer’s license for the psychedelics in August 2022, and the license was amended in February 2023 to include cocaine.
The dealer’s license allows the company to possess, produce, sell, and distribute up to 250 grams (8.8 ounces) of cocaine and to import and manufacture coca leaves to create synthetics. Additionally, it allows the company to possess, produce, sell, and distribute up to 1,000 grams of psilocybin and psilocin.
A dealer’s license allows sales for clinical and scientific research or for medical purposes that have been legalized.
Decriminalization of Drug Possession in British Columbia
British Columbia decriminalized drug possession, effective Jan. 31, to allow adults 18 and older to possess up to 2.5 grams of opioids, cocaine, methamphetamine, and MDMA.
Trafficking those drugs remains illegal.
In an effort to prevent overdoses, groups such as the Drug User Liberation Front (DULF) offer a “safe supply” of tested, untainted cocaine, heroin, and methamphetamines to drug users in Vancouver.
Advocates want legal avenues to buy drugs from pharmaceutical sources but currently procure them through “the illicit market through community connections and darknet markets, sourcing from vendors in Canada,” according to DULF documents.
Access to Psilocybin and Psilocin in Canada
Canadians who want to legally access psilocybin and psilocin for medical purposes must apply through Health Canada’s special access program.
Harm reduction is a critically important and mainstream topic, and Adastra is staying at the forefront of drug regulations across the board.
Adastra Holdings CEO Michael Forbes said in a statement, “We will evaluate how the commercialization of this substance fits in with our business model at Adastra in an effort to position ourselves to support the demand for a safe supply of cocaine.”
Adastra’s Background and Financials
Formerly called Phyto Extractions, Adastra Holdings trades as XTRX on the Canadian Stock Exchange.
The cannabis extraction, distillation, and manufacturing-focused company produces concentrates under the Phyto Extractions brand.
According to its most recent earnings report, the company had a working capital deficiency of $2,802,516 as of Sept. 30, 2022.
Adastra incurred a net loss of $1.6 million for the nine months ending Sept. 30, 2022.
The report notes that “These events and conditions indicate a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern.”
Conclusion
Adastra’s approval to sell cocaine is a significant development in the drug industry. It highlights the shifting attitudes towards drugs, particularly in Canada, where drug decriminalization has become a mainstream topic. While Adastra’s license is
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