Australian pharmaceutical company Althea Group Holdings Limited’s (ASX:AGH) Canadian subsidiary, Peak Processing Solutions, has received a binding purchase order from WeedMD Rx, a subsidiary of Canadian publicly listed cannabis producer WeedMD Inc.
The initial order, performed as part of a one-year commercial services agreement, is valued at approximately C$130,000 and is slated for delivery in March 2021.
Althea CEO, Joshua Fegan, said that under the agreement Peak will perform a variety of services for WeedMD, including the hydrocarbon extraction of fresh-frozen cannabis biomass used to produce live resin cannabis concentrate products for sale in the Canadian adult-use cannabis market.
We are pleased to have received this initial purchase order from WeedMD, a like-minded innovator in the Canadian adult-use cannabis market,” Mr Fegan said.
“The PO and associated commercial agreement provide further recognition from an industry leader that Peak has the capability to produce and deliver cannabis products of the highest quality. Peak continues to attract strong interest from companies across Canada and the United States looking to enter the Canadian recreational cannabis market.”
Althea Group Holdings Ltd is a global pharmaceutical company and supplier of medicinal cannabis. Althea also offers a range of education, access and management services to support eligible patients and healthcare professionals in navigating medicinal cannabis treatment pathways.
Althea currently operates within highly regulated medicinal cannabis markets including Australia, United Kingdom and Germany, with plans to expand into emerging markets throughout Asia and Europe.
WeedMD Inc. owns and operates a 158-acre state-of-the-art greenhouse, outdoor and processing facility located in Strathroy, Ontario as well as a fully licensed 26,000 sq. ft. Aylmer, Ontario processing facility, specialising in cannabis extraction.