- Althea Group (AGH) secures an additional $2.2 million in funding through convertible notes
- The funding boost comes from US-based institutional investor, Obsidian Global Partners
- The money will support the launch of AGH’s new SKU’s, and continue growing its existing product range and provide general working capital
- Althea remains fully funded and expects cashflow breakeven and operating profitability during March 2023
- Shares in AGH are up 9.09 per cent, trading at 6 cents at 11:39 am AEDT
Cannabis-based medicine supplier Althea Group (AGH) has secured an additional $2.2 million in funding.
The funding boost comes from US-based institutional investor, Obsidian Global Partners, through convertible notes. AGH has capped the maximum amount of shares to be issued at 54,206,846.
The money will go towards supporting the launch of the company’s new SKU’s in the coming months, continue growing its existing product range and also provide general working capital.
Althea Group CEO Joshua Fegan said contributions from US-based investors are essential in a bid to attract new shareholders.
“The company believes that the participation of US investors is pivotal to attracting new long-term shareholders to AGH, especially with Peak well positioned in the burgeoning North American recreational cannabis market,” he said.
“AGH remains fully funded and focused on returning value to shareholders in 2023, through prudent financial controls and a profitable, sustainable future.”
Obsidian’s investment follows Althea raising $2.08 million in the December quarter. A further $4.32 million in funding was secured in January and February 2023 (including Obsidian’s investment).
The company aims to continue its aggressive pursuit of initiatives to increase revenue and build on its 1H2023 milestone, as a result of sales growth and record gross profit margins.
Althea insists it remains fully funded and aims to achieve cashflow breakeven and operating profitability during March 2023.
Shares in AGH were up 9.09 per cent, trading at 6 cents at 11:39 am AEDT.