PEAK PROCESSING LIMITED — Capital/Financing Update 2019

Oct 27, 2019

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ASX Announcement | 28 October 2019 Althea Group Holdings (ASX:AGH)

Althea launches new full spectrum CBD product for high-demand market

INVESTMENT HIGHLIGHTS:

• Althea CBD100 is Althea’s first highly concentrated CBD product and has been formulated to compete with ‘CBD only’ products, which are generally purified or isolate CBD

• Althea CBD100 has a full spectrum cannabinoid profile that provides it with a competitive advantage in the market compared to ‘CBD only’ products

• Althea expects that Althea CBD100 will substantially increase its patient growth rate

• Althea CBD100 is manufactured in Australia, GMP certified and ready for export to international markets

28 October 2019: Australian medicinal cannabis company Althea Group Holdings Limited (ASX:AGH) (‘Althea’ or ‘the Company’) is pleased to announce the launch of Althea CBD100 today, a new, highly concentrated cannabidiol (CBD) oral oil product.

What is Althea CBD100?

Althea CBD100 is a full spectrum cannabis-derived extract oral oil comprised predominantly of cannabidiol (CBD), along with small traces of terpenoids, flavonoids, and other cannabinoids. Containing less than 1mg per ml of tetrahydrocannabinol (THC), Althea CBD100 will be Althea’s most highly concentrated CBD medicinal cannabis product.

Althea CBD100’s competitive advantage

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

Full spectrum cannabis extract captures not only CBD, the primary cannabinoid, but also hundreds of other identified phytotherapeutic agents including cannabichromene (CBC), cannabigerol (CBG), and tetrahydrocannabivarin (THCV) as well as a range of terpenoids.

Reports suggest that researchers have found that CBD may have increased therapeutic benefits when in whole-plant extracts (full spectrum), where other cannabinoids and terpenes are present, as opposed to isolated form.[1]

Clinic data shows untapped market

Information provided by Cannvalate (a company with one of Australia’s largest network of prescribing clinics) indicates that product prescriptions of similar ‘CBD only’ products account for approximately 30% of their total prescriptions.

Cannvalate CEO Dr Sud Agarwal explains : “Althea CBD100 contains minimal THC (<0.08%) and so should meet the needs of Cannvalate’s network of 1000+ doctors, especially those who want a pure CBD product, those who are concerned about driving impairment and for certain paediatric patient populations.”

1 Mechoulam R, Ben-Shabat, S. From gan-zi-gun-nu to anandamide and arachidonoylglycerol: the ongoing story of cannabis. Nat. Prod. Rep. 1999; 16, 131-143 https://www.civilized.life/articles/mythbusting-cbd-5-popular-misconceptions-debunked/

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Data from Cannabis Access Clinics (CAC), one of Australia’s prominent medicinal cannabis clinics, also indicates that Althea CBD100 has the potential to address a significant proportion of their clientele.

Given the demand for ‘CBD only’ products in the Australian medicinal cannabis market, Althea expects that Althea CBD100 will substantially increase Althea’s patient numbers.

GMP certification

Good Manufacturing Practice (GMP) describes a set of principles and procedures that, when followed, helps ensure that therapeutic goods are of high quality.[2]

GMP is standard practice in pharmaceutical manufacturing and is a prerequisite in many emerging medicinal cannabis markets including Australia, the United Kingdom and Germany.

Althea CBD100 is manufactured in Australia, GMP certified and ready for export to international markets.

Althea Group Holdings CEO Josh Fegan said: “Launching Althea CBD100 fills an important gap in our existing product portfolio. Based on our extensive market research including discussions with various clinics, doctors and patients, we believe that Althea CBD100 will be well received in the marketplace.

We are very proud of the fact Althea CBD100 is formulated and manufactured in Australia under GMP.”

-ENDS-

For further information, please contact:

Althea Media Enquiries Australian Investors Josh Fegan Julia Maguire PAC Partners Securities CEO & Managing Director The Capital Network M: 03 9114 7401 M: 1300 70 20 20 M: +61 419 815 386 E: enquiries@pacpartners.com.au E: contact@althea.life E: julia@thecapitalnetwork.com.au

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 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 emerging markets throughout Asia and Europe.

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

2 Australian Government, Department of Health, Therapeutic Goods Administration website - https://www.tga.gov.au/good-manufacturing-practice-overview

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