Australian pharmaceutical company Althea Group Holdings (ASX: AGH) has announced plans to enter the cannabis-infused beverage market, through their Canadian subsidiary.
Althea was founded in Australia back in 2017. Now, the company has expanded into the Canadian market through subsidiary Peak Processing Solutions.
Peak’s Standard Processing license was granted by Canadian Health earlier this week, giving them the green light to begin producing cannabis-related products.
Specifically, Peak will now be producing cannabis-infused beverages, concentrates and tropicals out of their facility in Tecumseh, Ontario. Peak’s 3,716 sqm facility is the first large-scale independent processing facility of its kind in Canada.
Althea projects Peak’s revenue at over $26 million AUD within 18 months. The company will manufacture Cannabis 2.0 products for other companies, as well as supply medical cannabis back to Australia.
Canada’s Cannabis 2.0 market includes all edibles, beverages and other creative cannabis products. It is worth roughly $2.8 billion AUD in 2020. Cannabis extract-based products like cannabis drinks account for $1.5 billion of this market.
Althea has also announced that Peak will be producing cannabis-infused drinks through Canadian drinks company Blum Beverages. The drinks will contain 5 milligrams of THC each. THC (tetrahydrocannabinol) is one of the psychoactive components of cannabis.
Peak is also providing cannabis-infused beverages to The Collective Project. These beverages will be distributed throughout the US and Canada later this year.
Longterm, Althea expect this expansion to be favourable for Australian shareholders. Althea’s CEO Josh Fegan shared his excitement with The Market Herald, saying:
We are excited by the potential to serve the burgeoning Cannabis 2.0 market and look forward to providing updates on our progress.
As of September 15, Althea is down 6.20% and is trading at $0.60 per share. You can find Althea’s database listing here.