PEAK PROCESSING LIMITED — Capital/Financing Update 2020

Jun 21, 2020

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ASX Announcement | 22 June 2020 Althea Group Holdings (ASX:AGH)

Peak signs binding cannabis beverage production agreement with Collective Project

Investment Highlights:

• Peak Processing Solutions has entered into a cannabis beverage production agreement with Collective Project Limited, the cannabis focused sister company of Collective Arts Brewing Limited

• Manufacturing will commence following Peak receiving its Health Canada Standard Processing Licence

• Peak has had a significant number of customer enquiries and aims to secure further orders soon

• Peak's license application continues to progress with Health Canada

22 June 2020: Australian pharmaceutical company Althea Group Holdings Limited (ASX:AGH) (‘Althea’ or ‘the Company’) is pleased to announce that its wholly owned subsidiary, Canadian-based Peak Processing Solutions (‘ Peak ’), has entered into a cannabis beverage production agreement with Collective Project Limited (‘Collective Project’), the cannabis focused sister company of Collective Arts Brewing Limited (‘ Collective Arts ’).

Binding production agreement

Under the binding production agreement Peak will manufacture and distribute cannabis-infused canned beverages on behalf of Collective Project. Manufacturing at Peak’s custom 3,716 square metre (40,000 square feet) facility in Tecumseh, Ontario, is subject to Peak receiving its Health Canada Standard Processing Licence.

The agreement is an important milestone for Peak and early validation of the industry leading production capabilities that Peak will be able to offer its customers following receipt of its Standard Processing Licence. Once licenced, in addition to manufacturing cannabis-infused products, Peak will support its clients with a suite of professional services including product and brand development, regulatory affairs, warehousing and distribution.

Collective Project Co-Founder Matt Johnston said: “We're excited to be partnering with Peak in our first foray into the cannabis beverage world as they will be an integral piece to helping us create quality beverages that push the boundaries and stay true to our mission of being creative and innovative in everything we do.

Peak’s highly experienced team of experts in quality, regulatory, and manufacturing combined with their indepth knowledge of cannabis specific compliance requirements mandated by Health Canada provides us with the confidence we need in a partner to ensure the success of our project.”

Peak President Gregg Battersby said: “We are extremely excited to partner with a proven company like Collective Arts on their cannabis beverage project. Collective Arts is a grassroots brewer that stands for quality and creativity, so it was no surprise to us that they would be a pioneer in the cannabis beverage space.

From recognized beverage and alcohol companies to well-known cannabis licenced producers looking to expand their offerings, aspiring market entrants are getting very excited about the next generation of adult-use cannabis products. Peak is right in the thick of the action and will be ready to service our clients from day one, just as things begin to normalise following the pandemic.”

Since announcing its Health Canada evidence package submission, Peak has had a significant number of customer enquiries and aims to secure further orders soon. Peak's license application continues to progress with Health Canada.

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-ENDS-

Authorised by: Robert Meissner, Company Secretary

For further information, please contact:

Althea Media Enquiries Joshua 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

About Collective Project

Collective Project is committed to producing high-quality, innovative beverages that redefine social occasions and are inspired by creativity. Their beverages are made with real ingredients that are well-balanced in both flavour and dose, using cannabis emulsions that are all natural, gluten-free and produced with non-GMO ingredients.

Collectiveproject.com / @collectiveprojectca

Collective Project Media Contact Toni Shelton +1 905.515.7104 toni@collectiveproject.com

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