PEAK PROCESSING LIMITED — Capital/Financing Update 2019

Feb 20, 2019

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FOR IMMEDIATE RELEASE

Althea Signs Product Supply and Distribution Agreement with Cannvalate and reaches 354 Patients & 109 Prescribers

• Althea has signed a product supply and distribution agreement with Cannvalate, providing Althea with access and support to one of Australia’s largest network of medicinal cannabis prescribing clinics

• 354 Patients have now been prescribed Althea’s medicinal cannabis products

• 109 Healthcare Professionals are prescribing Althea’s products in Australia

Melbourne, Australia, 21 February 2019: Medicinal cannabis company, Althea Group Holdings Limited (ASX:AGH) through its wholly-owned subsidiary Althea Company Pty Ltd (“ Althea ”) has signed a product supply and distribution agreement with Cannvalate Pty Ltd (“ Cannvalate ”), a company with one of Australia’s largest network of medicinal cannabis prescribing clinics spanning all states of Australia.

The agreement appoints Cannvalate as a non-exclusive distributor of Althea’s medicinal cannabis products in Australia with the aim of rapidly increasing Althea’s network of existing prescribers, primarily specialist doctors and, ultimately, its patient base.

Cannvalate CEO, Dr Sud Agarwal says: “Cannvalate are honoured and thrilled to be representing Althea and its high-calibre medicinal cannabis products through our network of more than 1,000 doctors and 600 pharmacies. Cannvalate led prescriptions currently account for over 30% of the Australian market, which has seen the number of total monthly prescriptions increase by over 800% in the last twelve months.

Our specialist medical panel have reviewed Althea’s product range and have provided a detailed plan on how to target each of its products to the most appropriate specialists and our education team have been briefed to provide the support necessary to allow Althea to carve a strong market presence.

We look forward to working with Althea and its team to ensure maximal uptake of its products in the Australian cannabis marketplace.”

Althea’s CEO, Mr Joshua Fegan says: “Establishing a product supply and distribution agreement with Cannvalate, a company that provides access to one of Australia’s largest networks of medicinal cannabis prescribing clinics provides Althea with an excellent partner for the distribution of our medicinal cannabis products. This agreement is expected to further accelerate our sales growth and is evidence of the rapidly growing market and validity of what we are doing in Australia.”

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Althea continues to increase its prominence in Australia’s medicinal cannabis market with 354 patients being prescribed Althea’s medicinal cannabis products through 109 prescribing doctors and an increasing network of pharmacies dispensing Althea medicinal cannabis products.

Althea CEO, Mr Joshua Fegan, adds: “With Cannvalate’s broad network of prescribing doctors in addition to our on-ground team and Concierge patient access platform, we believe we can reach as many individual patients in the quickest manner possible. Althea continues to assess partnership opportunities with a view to continuing to strengthen our footprint and will update the market as material developments emerge.”

-ENDS-

About Althea

Althea Group Holdings Limited (ASX:AGH) is a patient-focused medicinal cannabis company that has all the required licenses and permits to import, cultivate, produce and supply medicinal cannabis in Australia.

Through a strategic partnership with cornerstone investor Aphria Inc., one of the largest cannabis companies listed in North America, Althea has become a leading supplier of medicinal cannabis in the Australian market.

Althea’s focus on patient care underpins its business strategy. To this end, Althea has developed a mobile application and web-based platform to educate healthcare professionals on the benefits of medicinal cannabis and assist them in navigating the regulatory landscape. Althea is currently planning the construction of its own production facility and is in the process of expanding its product portfolio, patient numbers, and global footprint.

To learn more please visit: www.althea.com.au

Althea:

Josh Fegan, CEO & Managing Director 1300 70 20 20 | contact@althea.com.au

Investors:

PAC Partners Securities

03 8633 9834 | enquiries@pacpartners.com.au

Media contacts:

The Capital Network

Julia Maguire, Executive Director 0419 815 386 | julia@thecapitalnetwork.com.au