PEAK PROCESSING LIMITED — Capital/Financing Update 2019

Dec 16, 2019

ASX Announcement | 17 December 2019 Althea Group Holdings (ASX:AGH)

Althea approaching 4,000 patients in Australia amid record breaking patient growth and successful CBD product launch

Investment Highlights:

• 3,688 patients have now been prescribed medicinal cannabis products in Australia as Althea approaches the 4,000 patient milestone
• An average of 35 new patients have been added each business day in the first half of December, up 46% from November
• Althea CBD100 sales are exceeding expectations with 206 bottles sold in the first 18 business days since product launch
• 408 Healthcare Professionals have now prescribed Althea medicinal cannabis

17 December 2019: Australian medicinal cannabis company Althea Group Holdings Limited (ASX:AGH) ('Althea' or 'the Company') is pleased to provide the following market update with regards to the uptake of its medicinal cannabis products in Australia.

4,000 patient milestone imminent

Althea is fast approaching its 4,000 patient milestone in Australia after a solid performance in November that has carried over into a record first half of December, where an average of 35 new patients are currently being added every business day, up 46% from November and 67% from October.

There are now 408 Australian Healthcare Professionals ('HCPs') who have prescribed Althea's products.

Chart 1: Patient Growth as at 16 December 2019 (December partial month)

Chart 2: HCP Growth as at 16 December 2019 (December partial month)

Althea's newly launched CBD product sales are exceeding expectations

Althea CBD100 sales have been exceptionally strong, with 206 bottles sold in the first 18 business days of the full spectrum cannabis-derived extract oral oil being available to patients.

Comprised predominantly of cannabidiol (CBD), along with small traces of terpenoids, flavonoids, and other cannabinoids, and containing less than 1mg per ml of tetrahydrocannabinol (THC), Althea CBD100 is Althea's most highly concentrated CBD medicinal cannabis product.

Althea CBD100's full spectrum cannabinoid profile provides it with an advantage over existing products in the market, which are generally 'purified' or 'isolate' CBD (otherwise known as 'CBD only').

Althea CEO Josh Fegan said: "Business is great, with patient numbers, prescriber numbers and product sales all increasing at a healthy rate going into the holiday period. Althea CBD100 has launched successfully and we are already receiving positive feedback from doctors, patients and pharmacists about the product's efficacy and price point. In fact, many of our sales have come from prescribers switching their patients to Althea CBD100 from other brands. Althea Concierge continues to underpin the Company's market leading strategy and we are well positioned to continue to improve patient access to medicinal cannabis treatment in Australia and beyond for many years to come."

-ENDS-

Authorised by: Robert Meissner, Company Secretary

For further information, please contact:

Althea Josh Fegan CEO & Managing Director M: 1300 70 20 20 E: contact@althea.life

Media Enquiries Kirby Symes Media Relations P: +613 9650 5096 E: ksymes@althea.life

Althea Group Holdings Limited (ASX:AGH)

Althea is an Australian licensed producer, supplier and exporter of pharmaceutical grade medicinal cannabis and is listed publicly on the Australian Securities Exchange (ASX:AGH). Althea also offers a range of products, 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 and the United Kingdom, with plans to expand into Germany, emerging markets throughout Asia and other parts of Europe.

To learn more, please visit: www.althea.life