PEAK PROCESSING LIMITED — Capital/Financing Update 2021

Aug 24, 2021

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ASX Announcement | 25 August 2021 Althea Group Holdings Limited (ASX:AGH)

AGH completes $10.64m capital raising to support strategic growth initiatives and continued global expansion

Highlights:

• AGH has successfully completed a placement which received strong support from existing institutional shareholders, new institutional investors and new sophisticated investors

• The company received commitments for approximately $10.64m

• Proceeds from the capital raising will be used to invest in further growth initiatives across the company’s pharmaceutical business and supporting working capital

25 August 2021: Althea Group Holdings Limited (ASX:AGH) (‘AGH’, or ‘the Company’) , a global leader in the manufacturing, sales and distribution of cannabis-based medicines and recreational cannabis products, is pleased to announce the results of a successful capital raising.

Capital raising

The Company is pleased to announce it has received commitments from institutional and sophisticated investors to raise approximately $10.64m (before costs) via an institutional placement (‘ Placement’ ).

The Placement received strong demand from existing institutional shareholders, new institutional investors and new sophisticated investors. AGH will issue 44,351,885 new fully paid ordinary shares under the Placement using the Company’s Listing Rule 7.1 (20,359,299) and 7.1A (23,992,586) capacity at an issue price of $0.24 per New Share, which represents a 15.8% discount to the last closing price of AGH’s shares ($0.285) before the Company’s shares went into a trading halt on 23 August 2021.

Canaccord Genuity Australia Limited acted as Lead Manger to the placement.

Use of Funds

The proceeds raised (after costs) will be used to fund a range of growth initiatives across the Company’s pharmaceutical business Althea, to support further expansion in Australia, Europe and other international markets, and to fund general working capital.

Althea Group Holdings CEO, Joshua Fegan said: “We are very pleased to have received strong interest for this capital raising. The additional funding will fuel a range of strategic growth initiatives in our pharmaceutical business, and I’d like to take this opportunity to thank our new and existing shareholders for their support. We look forward to updating the market with news regarding our progress in established territories, as well as our ongoing international expansion.”

-ENDS-

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Authorised by: Robert Meissner, Company Secretary

For further information, please contact:

Althea Group Holdings Ltd Media & Investor Enquiries Josh Fegan Dan Francome CEO & Managing Director Media & Investor 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 (‘AGH’) is a global leader in the manufacturing, sales and distribution of cannabis-based medicines and recreational cannabis products. AGH services these sectors via two distinct business units. Althea, the company’s pharmaceutical business, offers a comprehensive range of cannabis-based medicines which are made available to patients via prescription. Peak Processing Solutions, AGH’s recreational cannabis business, produces legal cannabis products purchased by adult consumers in retail stores.

AGH operates in highly regulated and legal cannabis markets across the world with burgeoning operations in Europe, North America, Australia and Africa.

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

For more information on Peak, please visit: www.peakprocessing.com

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