Althea subsidiary Peak Processing to immediately commence operations following granting of Canadian cannabis licence
Second manufacturing and distribution agreement signed
- Althea’s wholly-owned subsidiary Peak Processing Solutions will immediately commence commercial operations having successfully obtained its Standard Processing Licence from Health Canada
- Peak will manufacture Cannabis 2.0 products on behalf of third parties as well as supply medicinal products to Althea’s pharmaceutical operations, greatly reducing Althea’s cost of goods sold
- Peak has also signed a manufacturing and distribution agreement with a second beverage customer and is advancing a rapidly growing pipeline of potential customers
- Peak is ideally positioned to capitalise on the Canadian boom in Cannabis 2.0 products including cannabis-infused beverages, edibles, concentrates and topicals
Recent research by Deloitte estimates that the Cannabis 2.0 market for edibles and alternative cannabis products is currently worth C$2.7bn per annum with significant growth forecast1
The Licence allows operations to commence at the recently completed 3,716 sqm facility in Tecumseh, Ontario. The facility is one of the first large-scale independent processing facilities of its kind, specialising in the manufacturing and distribution of cannabis-infused beverages, concentrates and topicals (‘Cannabis 2.0 products’).
Peak will manufacture Cannabis 2.0 products on behalf of third parties as well as supply medicinal products to Althea Company Pty Ltd, greatly reducing the company’s cost of goods sold. Peak aims to achieve C$25 million revenue within 18 months.
Specifically, the licence provides Peak with the ability to:
- Extract fresh and dried cannabis material for its own use and as a service on behalf of third parties
- Produce and package cannabis-derived beverages/extracts/topicals for sale on behalf of third parties
- Package dried flower for medical and recreational markets
Commenting on the granting of the licence Althea CEO, Josh Fegan, said: “We are very pleased that Health Canada has issued our processing licence. This is a major milestone and will allow Peak to immediately commence proaction 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. We are excited by the potential to serve the burgeoning Cannabis 2.0 market and look forward to providing updates on our progress.”
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