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Althea Group Holdings Ltd (ASX:AGH) has sold its MyAccess Clinics business in the United Kingdom and Ireland to Montu UK Ltd for $1 million as part of a streamlining plan.
MyAccess, which manufactures and retails cannabis products, provided medical cannabis treatments to help patients dealing with chronic pain, mental health, and sleep conditions.
The sale should help Althea achieve operating cost savings of around $1.5 million, as well as annualised cost savings of $4 million (previously announced in May).
On top of that, the ASX-listed company will now be able to concentrate on expansion of its North American operations, particularly targeting the cannabis beverage sector through Peak Processing Solutions – its recreational cannabis business whose products are marketed to retail stores.
Althea CEO Joshua Fegan said the decision would boost the company’s ability to grow in North America in particular.
“The completion of this sale marks a significant step in AGH’s strategy to streamline our operations and sharpen our focus on high-growth opportunities,” he said.
“By divesting MyAccess Clinics, we are better positioned to accelerate our North American expansion, particularly in the cannabis beverages market through Peak Processing Solutions.”
Althea shares fell on the news, and at 14:14 AEDT, they were trading at 4 cents – a fall of 6.98% since the market opened.
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