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- Althea Group (AGH) is getting ready to raise more capital, while also announcing a new deal with a Canopy Growth Corporation subsidiary
- AGH placed its shares in a trading halt on Monday morning, with full details of the fundraise set to be released by Wednesday, August 25
- The cannabis business also announced today that its subsidiary, Peak Processing Solutions, has signed a deal with Supreme Cannabis
- Under the manufacturing agreement, Peak will perform extraction services for Supreme with minimum order quantities of C$600,000 (A$655,000)
- Shares in Althea Group last traded at 28.5 cents each
Althea Group (AGH) is getting ready to raise more capital, while also announcing a new deal with a Canopy Growth Corporation’s subsidiary.
AGH placed its shares in a trading halt on Monday morning, with full details of the fundraise set to be released by Wednesday, August 25.
The cannabis business also announced today that its subsidiary, Peak Processing Solutions, has signed a deal with Supreme Cannabis.
Supreme is a subsidiary of Canopy Growth, which is one of the world’s largest cannabis companies.
Under the manufacturing agreement, Peak will perform hydrocarbon extraction services to create various concentrate products for Supreme using their cannabis.
The deal has minimum order quantities of C$600,000 (A$655,000) over one-year, with the agreement able to be extended.
Althea Group CEO Joshua Fegan said he was pleased to see Peak sign another deal, with the subsidiary bringing in $1.52 million in revenue over FY21
“It’s pleasing to see Peak sign yet another substantial manufacturing agreement with such a strong and recognised licensed producer in the Canadian recreational cannabis market,” Mr Fegan said.
“This really highlights the capabilities of the Peak business and further exemplifies the confidence that premium brands are placing in the team at Peak.”
AGH expects Peak to generate $15 million in revenue over FY22, with its own pharmaceutical cannabis business achieving revenue of $10.02 million in FY21.
Shares in Althea Group last traded at 28.5 cents each.
