- Australian pharmaceutical company Althea Group Holdings (AGH) Canadian subsidiary, Peak Processing Solutions, has received its cannabis licence and will commence operations
- The company will now manufacture cannabis- infused beverages, concentrates and tropicals at its facility in Tecumseh, Ontario
- Peak Processing Solutions is aiming to achieve C$25 million (around A$26 million) revenue within 18 months
- Additionally, Peak signed with a second beverage company, Blum Beverages, which is a Canadian non-alcoholic beverage company
- On the market this afternoon, Althea is up 9.48 per cent and is trading for 63.5 cents per share
Althea Group Holdings (AGH) Canadian subsidiary, Peak Processing Solutions, has commenced operations after receiving its cannabis licence.
Peak has received its Standard Processing Licence from Health Canada and will immediately commence commercial operations.
The company will now manufacture cannabis-infused beverages, concentrates and tropicals (Cannabis 2.0 products) at its facility in Tecumseh, Ontario. The facility is one of the first large-scale independent processing facilities of its kind.
Peak will manufacture Cannabis 2.0 products on behalf of third parties as well as supply medicinal products to Althea. The company is also aiming to achieve C$25 million (around A$26 million) revenue within 18 months.
Research has estimated that the Cannabis 2.0 market is currently worth C$2.7 billion (around A$2.8 billion) annually, with cannabis extract-based products accounting for C$1.6 billion (approx A$1.5 billion).
The Blum Beverage Agreement
In addition to the licence, Peak has also signed an agreement with Blum Beverages, a Canadian non-alcoholic beverage company.
Under the agreement, Blum will be able to place orders for Peak to manufacture and distribute cannabis beverages. The beverages will have 5 milligrams of tetrahydrocannabinol (THC).
The commercial terms for this agreement remain confidential.
Althea CEO, Josh Fegan, is pleased with the cannabis licence.
"This is a major milestone and will allow Peak to immediately commence production of cannabis-infused canned beverages for Collective Project and Blum, sign further customers who were waiting for the licence to be granted, and start supplying our own pharmaceutical operations with finished (Althea) products at a drastically lower cost than we currently pay to third party suppliers," he said.
"We are excited by the potential to serve the burgeoning Cannabis 2.0 market and look forward to providing updates on our progress," he added.
On the market this afternoon, Althea is up 9.48 per cent and is trading for 63.5 cents per share at 12:19 pm AEST.