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PEAK PROCESSING LIMITED — Capital/Financing Update 2020
Nov 30, 2020
65568_rns_2020-11-30_263cd2cd-0900-471e-a9ad-5760d1794094.pdf
Capital/Financing Update
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ASX Announcement | 01 December 2020 Althea Group Holdings (ASX:AGH)
Peak to manufacture US cannabis brand Tinley’s™ in Canada
Peak selected as the exclusive manufacturer of Tinley’s™ cannabis-infused beverages for the Canadian market
Investment Highlights:
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Althea subsidiary Peak Processing Solutions has entered an agreement with The Tinley Beverage Company (CSE:TNY) for the manufacture and distribution of three non-alcoholic cannabis-infused beverages into the Canadian adult use cannabis market - being Tinley’s™ ’27 elixirs, Coconut Cask, Cinnamon Cask and Almond Cask
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Tinley’s™ won the coveted Gold and Silver awards at the most recent Emerald Cup - the largest cannabis competition in the world - held in Northern California
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An initial order representing more than CAD $100,000 in revenue for Peak is planned for delivery in early Q1 2021, with strong consumer demand expected to result in similar monthly orders
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Peak is on track to deliver on its revenue objectives in the short, medium, and long term
01 December 2020: Australian pharmaceutical company Althea Group Holdings Limited (ASX:AGH) (‘Althea’ or ‘the Company’) is pleased to announce that the Company’s subsidiary, Peak Processing Solutions (“ Peak ”), has entered an agreement with The Tinley Beverage Company (“Tinley’s”) for the manufacture and distribution of three non-alcoholic cannabis-infused beverages into the Canadian adult use cannabis market (“Agreement”) - being Tinley’s™ ’27 elixirs, Coconut Cask, Cinnamon Cask and Almond Cask.
Tinley’s™ is a leading cannabis beverage brand in the United States and the company itself is listed on the Canadian Securities Exchange (TNY:CSE). Tinley’s™ won the coveted Gold and Silver awards at the most recent Emerald Cup, the largest cannabis competition in the world, held in Northern California.
Under the Agreement, Peak holds exclusivity for the manufacture and distribution of the three Tinley’s products in Canada until Tinley’s meets established minimum quantities. An initial order representing more than CAD $100,000 in revenue for Peak is planned for delivery in early Q1 2021, with strong consumer demand expected to result in similar monthly orders. The Agreement is for an initial 3-year period.
Commenting on the Agreement, Althea CEO, Josh Fegan, said: “The Agreement with Tinley’s is yet another key milestone for Peak and immediately follows the Company announcing an increase in its forecasted revenue of up to CAD$4.65M, over the next 12 months. With Peak having successfully obtained its Standard Processing Licence from Health Canada in only September 2020, the team has been quick to further ramp up business development. The addition of the Tinley’s Agreement to Peak’s growing list of contracts increases our 12 months expected revenue yet again and keeps the Company well on track to deliver on our revenue objectives in the short, medium and long term.”
Tinley’s President of California, Rick Gillis, said: “The Agreement with Peak is an exciting step for our company, as we seek to further drive geographic expansion through launch of our second product family in the Canadian market. Peak’s facility and team of professionals deliver the world class standard of Cannabis 2.0 co-packing services that we strive to provide at our own licensed copacking facility in Long Beach, California. Peak’s team has already demonstrated expert capabilities with the depth and rigor required to produce our sophisticated formulations in a compliant and
consistent manner. Our team is confident that they can support the growth and scalability we anticipate requiring to execute in Canada’s booming infused drink category in the months and years to come.”
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Image 1 - Tinley’s™ ’27 elixirs - Coconut Cask, Cinnamon Cask and Almond Cask, which will be manufactured by Peak in Canada (California packaging shown)
Peak’s progress to date
In June 2020, Peak entered into a cannabis beverage production agreement with Collective Project Limited, the cannabis-focused sister company of Collective Arts Brewing Limited, for the manufacture and distribution of cannabis-infused canned beverages into the Canadian Cannabis 2.0 market.
On 14 September 2020 Althea announced that Peak had obtained its Standard Processing Licence from Health Canada, a major milestone for Althea with commercial operations commencing immediately.
In November 2020, Peak entered into a License Agreement with Canadian-based, Earth Kisses Sky, to produce two customer branded topical products, with 65,898 units (previously reported incorrectly as 150,000 units with no impact on revenue) expected to be purchased in year one. Peak also signed a Manufacturing and Distribution Services Agreement with Canadian cannabis beverage start-up, Electric Brands, to produce two canned beverage SKUs with an initial order of 50,000 units anticipated.
This latest Agreement with leading US cannabis-infused beverage brand Tinley’s™ is further proof of Peak’s unique production capabilities and superior customer service.
-ENDS-
Authorised by: Robert Meissner, Company Secretary
For further information, please contact:
Althea Media Enquiries Investor Relations Josh Fegan Dan Francome Jane Morgan CEO & Managing Director Media Relations Investor Relations Partner M: 1300 70 20 20 P: +613 9650 5096 M: +61 405 555 618 E: [email protected] E: [email protected] E: [email protected]
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
The Tinley Beverage Company Inc. (CSE:TNY)
The Tinley Beverage Company has built the largest cannabis beverage co-packing facility in California. Its liquor-inspired, cannabis-infused beverages won the #1 and #2 awards in California’s Emerald Cup and are available in licensed dispensaries throughout the state.
The Company sells non-infused versions of its liquor-inspired products for the “Low and No Alcohol” consumer in major retailers across the USA including Costco and Ralphs/Kroger and is launching in Canada in late 2020.