PEAK PROCESSING LIMITED — Capital/Financing Update 2020

Jun 23, 2020

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ASX Announcement | 24 June 2020 Althea Group Holdings (ASX:AGH)

Althea ramps up UK expansion as MyAccess Clinics enters Project Twenty21 MOU and receives approvals for additional clinics

Investment Highlights:

• Althea’s MyAccess Clinics has entered into an MOU with Drug Science, an independent scientific committee in the UK

• Drug Science may refer patients to MyAccess Clinics for assessment by its prescribers for inclusion and treatment in Project Twenty21

• Project Twenty21 is the UK’s first national pilot for medical cannabis which aims to enrol 20,000 patients before the end of 2021

• Althea is also seeing strong growth across MyAccess Clinics’ key metrics and has received approval for five new clinics which will bring the total number of clinics up to seven

• MyAccess Clinics have accelerated the rollout of telehealth services in response to COVID-19

24 June 2020: Australian pharmaceutical company Althea Group Holdings Limited (ASX:AGH) (‘Althea’ or

‘the Company’) is pleased to announce that its wholly-owned subsidiary MMJ Clinic Group Limited t/a MyAccess Clinics (‘MyAccess Clinics’) has made significant progress in the UK, securing a new patient referral agreement and further CQC approvals for additional clinic locations.

MOU with Drug Science creates additional pathway to boost UK patient numbers

MyAccess Clinics has entered into a memorandum of understanding (‘MOU’) with Drug Science, an independent scientific committee which is conducting the UK’s first national pilot for medical cannabis. The pilot, Project Twenty21, aims to enrol 20,000 patients before the end of 2021.

Under the MOU, Drug Science can refer patients to MyAccess Clinics for assessment by its prescribers for inclusion and treatment in Project Twenty21.

MyAccess Clinics’ prescribers will be able to provide assessment services for the full Project Twenty21 product formulary. Patients will pay regular MyAccess Clinics consultation fees (£150 initial consultation and £50 for follow up consultations). The MOU does not restrict the clinical freedom of MyAccess Clinics’ prescribers.

Strong growth across key metrics and new clinic locations approved

In parallel to the MOU, the Company continues to see strong growth across MyAccess Clinics’ key metrics, despite the recent disruptions caused by the COVID-19 lockdowns.

Over the last two months, MyAccess Clinics received almost double the number of web-based enquiries, increasing from 339 to 673. There was also a significant rise in month-on-month patient consultations, which were up 50% over the same period. Prescriptions saw a 94% conversion rate from completed patient consultation to prescription for medical cannabis.

In response to COVID-19, MyAccess Clinics also accelerated the rollout of its telehealth services, which allow prescribers to conduct video consultations with patients located anywhere in the UK.

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MyAccess Clinics can provide telehealth services due to its Care Quality Commission (CQC) licence, which it obtained from the independent regulator of health and social care in England in Q4 CY19 [ASX Announcement: 14 November 2019].

The CQC has also recently approved five new clinic locations – bringing the total number of MyAccess Clinics up to seven. In addition to the existing clinics in London and Bristol, MyAccess Clinics now has approval for a second location in London as well as clinics in Birmingham, Leeds, Liverpool and Manchester.

Approval of the CQC licence was a significant milestone in the Company’s UK expansion plans and it has provided further regulatory acceptance of cannabis-based medicines being used as a treatment option.

Althea CEO Josh Fegan said: “ We are very pleased with the progress MyAccess Clinics is making in the UK, despite the challenges caused by COVID-19. Project Twenty21 will not only create additional patient consultation opportunities for our clinics, but will also yield valuable data that can be used to strengthen the case for wider use of cannabis-based medicines and the need for reimbursement through the NHS. We are excited to be participating in the project and are pleased to see UK patients gaining increasing access to Althea’s high-quality medical cannabis products.”

-ENDS-

Authorised by: Robert Meissner, Company Secretary

For further information, please contact:

Althea Media Enquiries Josh Fegan Dan Francome CEO & Managing Director Media Relations M: 1300 70 20 20 P: +613 9650 5096 E: contact@althea.life E: dfrancome@althea.life

Althea Group Holdings Limited (ASX:AGH)

Althea Group Holdings Ltd (ASX:AGH) 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 further expand into emerging markets throughout Asia and Europe.

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

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