Australian medical cannabis company Althea Group Holdings Limited (ASX: AGH) says its Canadian subsidiary has signed a manufacturing agreement with another cannabis company in that country.
The agreement is between Peak Processing Solutions and Delshen Therapeutics Corp’s wholly owned subsidiary 48North Cannabis Corp and involves Peak manufacturing four products for 48North’s Latitude brand. The products are: a CBD body lotion, a 1:1 THC/CBD body lotion, CBD bath salts, and a 1:1 THC/CBD bath salts.
Minimum order quantities under the agreement have a combined value of approximately CAD$1.25 million.
“This agreement with 48North is once again recognition that Peak is becoming a major player in the Canadian legal cannabis market,” said Althea CEO Joshua Feagan.
Peak operates from a 3,716 square metre facility in Ontario, Canada; making products for that country’s recreational and medical cannabis markets. Althea completed its acquisition of Peak Processing Solutions, which was founded by several former Althea employees, in October 2019 for CAD$4.1 million in cash and 6,833,839 shares.
In other relatively recent news from Althea, late last month the company announced it exported its first commercial shipment from Australia destined for sale in South Africa’s medicinal cannabis market. The products were shipped to Althea’s local partner, Africann, which focuses on importing and distribution of medicinal cannabis products.
Althea struck the partnership with Africann in December last year. Overall forecasted sales under the initial 2.5 year term of the agreement are expected to be approximately A$650k.
Althea is a licensed producer, supplier and exporter of pharmaceutical grade medicinal cannabis and currently operates in Australia, Germany and the United Kingdom, with plans to expand into emerging markets throughout Asia and Europe. The company also operates an online service called Concierge that is designed to simplify the process for accessing medicinal cannabis for patients, healthcare professionals and pharmacies. The Concierge service, currently available in Australia, Germany and the UK, has been registered with Australia’s Therapeutic Goods Administration (TGA) as a medical device.
While results for Althea’s full financial year 2020/21 are yet to be published, in the half-year to 31 December 2020, Althea generated revenue of $5,098,000; an increase of 175.3% on the prior corresponding period.