- Althea Group's (AGH) subsidiary, Peak Processing Solutions, has received a purchase order from Cronos Group's subsidiary, Peace Naturals Project
- The order is valued at C$134,000 (roughly A$137,216) and will see Peak extract cannabinoids using the hydrocarbon extraction method to process these into cannabis concentrate products
- Significantly, Peak is one of the few processors in Canada capable of producing hydrocarbon extracted cannabis concentrates
- This puts Althea's subsidiary at the forefront of servicing an in-demand product type
- Production is expected to begin this month and products will be sold into the Canadian cannabis market
- Althea's shares are up a slight 0.98 per cent and are trading at 51.5 cents
Althea Group's (AGH) subsidiary, Peak Processing Solutions, has received an C$134,000 (roughly A$137,216) purchase order from Peace Naturals Project.
Peace Naturals is a subsidiary of Canada-based cannabis company, Cronos Group.
The one-year commercial services agreement will see Peak execute the hydrocarbon extraction of cannabis biomass and process the extract into cannabis concentrate products. Once they're ready, they'll be sold in the Canadian cannabis market.
Hydrocarbon extraction is a method used to extract cannabinoids from cannabis plant material. Hydrocarbons, such as propane and butane, essentially act as solvents that can strip cannabinoids from plant material.
Peak specialises in manufacturing cannabis-infused drinks, concentrates and topical products at its facility in Ontario. The facility is one of the first large-scale, independent processing facilities of its kind.
The subsidiary is also one of the few processors in Canada that is capable of producing hydrocarbon extracted cannabis concentrates. This puts Peak at the forefront of servicing this in-demand product type.
"It is pleasing to see how quickly the Peak business is taking off this year, attracting a world-class supply agreement with Peace Naturals, just a few months post licensing," Althea CEO Joshua Fegan said.
In September last year, Health Canada granted Peak a Standard Processing Licence which allowed it to start manufacturing and selling cannabis products.
"We look forward to continuing to secure supply agreements with other like-minded players in the fast-growing Cannabis 2.0 space and further demonstrating the world-class cannabis extraction capabilities of Peak," Joshua concluded.
Production is expected to begin this month.
Althea's shares are up a slight 0.98 per cent and are trading at 51.5 cents at 1:04 pm AEDT.