- Althea’s (AGH) subsidiary, Peak Processing Solutions, signs a two-year manufacturing deal with 48North Cannabis’ subsidiary Delshen Therapeutics
- Peak will manufacture four THC and CBD products for 48North’s well-known Latitude brand
- The deal includes at two orders with a combined value of C$1.25 million (A$1.34 million)
- Althea CEO, Joshua Fegan, says this deal allows Peak to demonstrate its ability to produce high-quality topical and bath products consumers will love
- Company shares are up 1.43 per cent and were trading at 35.5 cents
Althea’s (AGH) subsidiary, Peak Processing Solutions, has signed a manufacturing agreement with Delshen Therapeutics.
Delshen Therapeutics is a wholly-owned subsidiary of well-known Canadian cannabis licensed operator and brand marketer, 48North Cannabis. 48North is considered an early mover in the cannabis industry with brands that span the medical, recreational, wellness and cannabis accessory sectors.
Under the two-year, non-exclusive deal Peak will manufacture four products for 48North’s Latitude brand. The four products include a cannabidiol (CBD) body lotion, a 1:1 tetrahydrocannabinol (THC)/CBD body lotion, CBD bath salts, and a 1:1 THC/CBD bath salt product.
The 1:1 bath salt product is already on the market and is reportedly performing strongly as it’s the only item of its kind currently available.
Althea CEO, Joshua Fegan, said he was pleased Peak would be able to demonstrate its capabilities.
“This agreement with 48North is once again recognition that Peak is becoming a major player in the Canadian legal cannabis market. The opportunity to supply the well-known Latitude brand will enable the team at Peak to demonstrate their ability to produce fantastic topical and bath products which consumers will love.”
Peak is a licensed cannabis producer who specialises in formulating and making innovative cannabis-infused products. It operates from a purpose-built 3716-square metre facility in Ontario which offers its partners access to a broad range of cannabis production capabilities.
The agreement includes at least two orders that have a combined value of C$1.25 million (A$1.34 million). The order quantities will operate on a per product basis,
and are required to be purchased over a 12-month period starting from the date Peak accepts the first purchase order.
48North CEO, Charles Vennat, was also pleased to be partnering with Althea’s subsidiary.
“Given the in-market reputation of these products, we don’t make such decisions lightly. From our time working with the team at Peak, we have full confidence that Peak is the perfect partner to produce our Latitude products.”
Company shares were up 1.43 per cent and were trading at 35.5 cents at 10:15 am AEST.