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Althea Group (ASX:AGH) one step closer to license green light

Health Care
ASX:AGH      MCAP $12.16M
07 April 2020 10:15 (AEST)
Althea Group (ASX:AGH) - CEO, Joshua Fegan

Source: Althea

Althea Group’s (AGH) subsidiary, Peak Processing Solutions, has submitted its evidence package to Health Canada.

The submission marks the final step in the lengthy application process to receive its standard processing license.

Once approved, Peak Processing Solutions will be able to commence operations at its recently completed 40,000 square foot facility in Tecumseh, Ontario. The site is one of the country’s first large-scale processing facilities.

It will specialise in the production of cannabis-infused beverages, edibles, concentrates and topicals. The facility will also be able to manufacture pharmaceutical-grade medicinal cannabis products.

The evidence package submitted to Health Canada included a full video tour of every room at the facility, including manufacturing areas, packaging lines, receiving and shipping warehouses, extraction rooms and offices.

Gregg Battersby, founder and President of Peak Processing Solutions, said that the submission of the final evidence package is an exciting milestone for the company.

“I am confident that the combination of Peak’s highly capable leadership team, unique production capabilities and focus on quality, will position us as the leading supplier to the rapidly growing Cannabis 2.0 market in Canada,” Greg said.

“Based on internal forecasting and modelling, we have projected to achieve revenue of $25 million within 18 months of being granted our licence from Health Canada,” he added.

In addition to manufacturing its own products, Peak’s facility will offer its services to other consumer packaged goods and unlicensed parties, including beverage and alcohol companies.

Further to this, the company will also offer a variety of professional services, including research and development, product formulation, regulatory affairs, warehousing and distribution.

Joshua Fegan, CEO of Althea Group, also commented on the “imminent” approval.

“Peak is the first production facility in the AGH group of companies and can supply a full range of final dose form medicinal cannabis products to Althea, which mitigates our reliance on third party manufacturers and reduces our cost of goods (sold) dramatically,” Joshua noted.

“Our Canadian team also have some exciting product technologies, especially around product administration and the onset/offset of active ingredients, which Althea can leverage,” he concluded.

Althea Group is trading grey today, with shares selling for 29 cents each at 10:15 am AEST.

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