PEAK PROCESSING LIMITED — Investor Presentation 2018

Dec 9, 2018

December 2018

Althea Group Holdings Limited ACN 626 966 943 (Company) has prepared this presentation (Presentation) dated 10 December 2018 to provide current and prospective investors in the Company with an update in relation to the Company, its subsidiaries and their activities.

This Presentation contains summary information about the Company, its subsidiaries and their activities which is current as at the date of this Presentation. The information in this Presentation is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in Althea Group Holdings Limited or that would be required in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act 2001 (Cth). This Presentation has not been and will not be filed with or approved by any regulatory authority in Australia, including the Australian Securities and Investments Commission (ASIC), or any other jurisdiction.

The historical information in this Presentation is, or is based upon, information that has been lodged with the Australian Securities Exchange (ASX) and released on the ASX Market Announcements Platform. This Presentation should be read in conjunction with the Company's other periodic and continuous disclosure announcements which are available at www.asx.com.au (Company Code: AGH) or www.althea.com.au.

This Presentation does not constitute and should not be considered as an offer, invitation or recommendation to subscribe for or purchase any security in the Company in any jurisdiction. In particular, this presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The Company's securities have not been, and will not be, registered under the U.S. Securities Act of 1993 (Securities Act) or the securities laws of any state or other jurisdiction in the United States and may not be offered or sold in the United States without registration except in a transaction exempt from, or not subject to, the registration requirements of the Securities Act and any other applicable U.S. State securities laws.

Neither this Presentation nor anything contained in it forms the basis of any contract or commitment and no agreement to subscribe for securities will be entered into on the basis of this Presentation. This Presentation does not take into account any recipient's individual investment objectives, financial situation or particular needs. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own investment objectives, financial situation and needs and seek legal, accounting and taxation advice appropriate to their jurisdiction. The Company is not licensed to provide financial product advice in respect of any security in the Company.

To the maximum extent permitted by law, no representation, warranty or undertaking (express or implied) is made, and no responsibility is accepted by the Company or any of its affiliates, related bodies corporate, partners, shareholders, directors, officers, employees, representatives, consultants or advisers or any other person (Parties) as to the adequacy, accuracy, completeness or reasonableness of any statement or any of the information contained in or referred to in this Presentation or as to any other related matter. To the maximum extent permitted by law, none of the Parties takes any responsibility for any loss or damage suffered as a result of any inadequacy, incompleteness or inaccuracy in any such statement or information. To the maximum extent permitted by law, the Parties do not accept any liability to any person for any direct, indirect or consequential loss or damage arising from the use of this material. This Presentation is not a recommendation by any of the Parties that any recipient invest in the Company.

Past performance information provided in this presentation may not be a reliable indication of future performance. This Presentation contains certain forward looking statements and comments about future events. Forward-looking statements involve known and unknown risks, significant uncertainties, assumptions, contingencies, and other factors, many of which are outside the control of the Company, are subject to change without notice, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct, and which may cause the actual results or performance of the Company to be materially different from any results or performance expressed or implied by such forward-looking statements. Such forward-looking statements speak only as of the date of this Presentation. Forward looking statements should not be relied on as an indication or guarantee of future performance. No representation, warranty or undertaking is made that any projection, forecast, assumption or estimate contained in this Presentation should or will be achieved. Recipients must conduct their own independent investigation, evaluation and analysis of the matters and data set out in this Presentation, and rely entirely on such investigation and analysis. Recipients must form their own opinion as to whether or not to enter into any arrangements with the Company.

The distribution of this document in jurisdictions outside Australia may be restricted by law. If you are outside Australia, you may not be a person to whom an offer of securities in the Company may lawfully be made under the applicable laws in the jurisdiction in which you are situated without registration, lodgement or approval of a formal disclosure document or other filing in accordance with the laws of that foreign jurisdiction. Any such restrictions should be observed.

By accepting this Presentation, you agree to be bound by the foregoing limitations and conditions.

ASX Code: AGH

IPO Price: $0.20

Current Share Price: $0.2051

Market Capitalisation: $40.68 million2

Total Shares on Issue: 203,310,000

Options to acquire shares: 2,675,000

Performance Rights: 5,100,0003

Escrowed Securities: 89,060,000 Shares , 2,675,000 Options and 5,100,000 Performance Rights

Cash as at Bank (7 December 2018): Approximately $20.56million

Cash per Ordinary Share: $0.101

1 Closing price of Althea Shares on the ASX on 7 December 2018 2 Calculated as the total number of Shares on issue in Althea as at 7 December 2018 multiplied by the closing price of Althea Shares on the ASX on 7 December 2018 3 Performance Rights granted by Althea Group Holdings to Joshua Fegan under the LTI Plan

Board

Andrew Newbold: Independent Non Exec Chairman

Qualified lawyer. Extensive business experience and current director of Supra Capital, a Commissioner of the AFL and director of Golf Australia

Joshua Fegan: CEO / Managing Director

Founder of Althea in 2016. Previosly held a number of senior management roles at Strathfield Group

Alan Boyd: Non Exec Director

Currently CFO and Co. Sec at Ridley Corp Ltd (ASX:RIC). Previously a director of Avexa Ltd and Zenyth Therapeutics Ltd

Penelope Dobson: Non Exec Director

Pharmacist and experienced global healthcare executive. Previously with Merck and Company and its subsidiaries MSD and Banyu Pharma in Australia, NZ, US and Japan

Gregg Battersby: Non Exec Director (Aphria Inc. representative)

Currently Vice President of Commercial Strategy at Aphria Inc. Previously at Jamieson Labs Ltd

Major Shareholders

Joshua Fegan 28% Aphria Inc. ~25%

• Strong month-on-month patient and prescriber growth:
  • 214 patients prescribed Althea medicinal cannabis products from May 2018 with average month-on-month increase of 174%
  • 70 Healthcare Providers (HCPs) from May 2018 with average month-onmonth increase of 185%
  • 1,832 total SAS B application approvals1 between May 2018 and November 2018 with average month-on-month increase of 157%2
  • Althea est. 17% market share2 based on SAS B application approvals1
  • TGA notes "approval numbers do not equal the actual number of patients"1
  • All Althea patients were prescribed under the care of Specialists and / or GPs. Everyday doctors treating real world patients (not observational studies)

• Althea scheduled to receive a large shipment of its five medicinal cannabis products (four oils and one dried flower) by 15th December 2o18

• Planning is underway to secure up to 12 months future inventory in Australia for supply until Althea's own production commences in early 2020

• New Products In 1H 2019, Althea plans to launch two additional products:

  • Gel capsules
  • 115ml oromucosal spray (mouth and nose spray)

• Althea Concierge patient / doctor portal launched September 2018

  • 285 Patient registrations
  • 132 HCP registrations

• Regular updates of the Althea Concierge platform next major update to feature integration with the official TGA portal

• Increased user uptake will be a particular focus in 1H,2019

• Althea Concierge is a complimentary service. Althea believes patients have the right to talk to 'everyday' doctors about medicinal cannabis, including bulk billing clinics

• Althea has been granted all required Office of Drug Control (ODC) licenses including Import, Cultivation, Manufacturing and Export licenses

• Design of ODC approved state-of-the-art production facility complete

• Planning permit lodged November 2018

• Expected completion of production facility Q4, 2019

• Domestic production early 2020

• Production facility to provide seed-to-sale business model with existing distribution channel

• Althea's response to the medicinal cannabis patient access dilemma:

• Evidence-based Medical Education

  • Althea representatives work with doctors (specialists, GPs, psychiatrists etc.) face-to-face, helping them understand Althea medicinal cannabis as a treatment option for their patients

• Regulations

  • Doctors are time poor and can't spend extended periods learning to navigate regulations such as the TGA's Special Access Scheme
  • Althea provides assistance to doctors in understanding the regulatory framework and in the application process to the TGA and relevant state offices

• Althea Concierge

  • Everyday doctors prescribing to everyday patients: Althea Concierge is a complimentary patient – doctor portal where people considering medicinal cannabis can find a doctor to talk to them responsibly about Althea medicinal cannabis

• Patient X: 17 year old female, 5 years post surgery

  • Indications: Chronic pain, spasms, limited physical ability (could not go up stairs)
  • Progress: 1 month post commencing Althea medicinal cannabis dancing and sleeping in her own second floor bedroom

• Patient Y: 5 year old female

  • Indication: Autism
  • Progress: 2 months post commencing Althea medicinal cannabis, calmer, improved sleep, no aggression and developing problem solving skills

Patient HCP's

Based on SAS B Application numbers released by the TGA:https://www.tga.gov.au/access-medicinal-cannabis-products-1

• Althea commenced importing and supplying medicinal cannabis to patients in Australia in May 2018
• Althea maintains an extensive medical education program, employing medical science liaisons all over the country, to assist Healthcare Providers (HCP) with prescribing Althea medicinal cannabis
• Althea's world-first Althea Concierge platform a patient and doctor portal facilitates access to medicinal cannabis through education and technology
• Althea has a long term supply agreement with Aphria Inc., one of the largest Canadian cannabis companies licensed by Health Canada:
  • Planning underway to secure up to 12 months future inventory in Australia for supply until Althea's own production commences in early 2020
• A 3PL warehousing and distribution agreement with Melbourne-based pharmaceutical company ensures Althea is able to store controlled substances until its own facility is complete

• Althea currently sells four oil products and one dried flower product to eligible patients in Australia
• The benefits of Althea's medicinal cannabis oil include:
  • Providing patients with a slower and longer release of medicinal cannabis which is beneficial for treatment of specific conditions
  • Versatility of administering Althea's medicinal cannabis
• The benefits of Althea's medicinal cannabis dried flower include:
  • Providing patients the ability to smoke Althea's medicinal cannabis for a quicker onset of medicinal cannabis
  • Providing patients that have difficulty with swallowing pills with an alternative option to administering medicinal cannabis

• Althea will add two additional products, gel capsules and a 15ml spray, to its product range in the first half of 2019

• The benefits of Althea's medicinal cannabis gel capsules include:

  • Controlled dosage in a familiar preparation
  • A slower and longer onset, beneficial for treatment of specific conditions
  • A more discreet administration method

• The benefits of Althea's medicinal cannabis 15ml spray include:

  • Cost-effective for new patients to trial Althea medicinal cannabis
  • Higher margins per ml
  • Offers patients a fast and discreet delivery method

• 285 patient registrations and 132HCP registrations since September 2018, creating a growing channel that is proactively engaged with Althea, its products and educational content

• Althea intends to accelerate its sales efforts to supply more medicinal cannabis products to eligible patients seeking treatment in Australia by investing in its complimentary Althea Concierge service, provide regular updates to the platform and through targeted awareness campaigns and activities

• The Althea Concierge platform features a collaborative patient treatment plan, which enables:

  • Patients to keep track of their treatment plan in real-time and record notes about their progress and wellbeing
  • Medical practitioners to maintain their patients' virtual patient treatment plan and monitor patient progress

• To further support patient access, the Althea Concierge platform also contains a directory of registered medical practitioners and pharmacists with the relevant licences and approvals to prescribe and supply Althea's medicinal cannabis products

• The Office of Drug Control (ODC) has granted Althea the full suite of applicable licenses in Australia for it to execute its business plan, including:

  • Cultivation and Manufacture licence providing Althea with the right to grow and manufacture its own medicinal cannabis products at its upcoming facility. Althea intends to use these licences to produce its own medicinal cannabis products for distribution in the Australian market from 2020
  • Import licence - providing Althea with the right to import finished medicinal cannabis products ready for distribution to patients in Australia. Althea is expecting its second major shipment of Althea medicinal cannabis products from Canada in December 2018
  • Export licence – providing Althea with the right to distribute its Australian produced medicinal cannabis products. This license will provide Althea with the ability to export Althea medicinal cannabis products, if appropriate opportunities arise, into other jurisdictions and when such expansion is supported by an appropriate business case
  • Althea is one of only a small number of companies in Australia to be granted the above licenses for medicinal cannabis1

• Design and drawings complete

• Planning and Building permit lodged November 2018

• Expected completion Q4,2019

• Althea has entered into a 30 year lease for a 10-acre parcel of land in Victoria and has received its Office of Drug Control licences for cultivation and manufacture

• Althea plans to grow and manufacture its own high-quality medicinal cannabis for supply to eligible patients in Australia. Althea expects to distribute its Althea medicinal cannabis products through its existing distribution channels in early 2020

• The establishment by Althea of a medicinal cannabis cultivation, cannabinoid extraction and manufacturing facility is a key milestone in Althea's business plan, as it transitions to Australian grown versions of its imported medicinal cannabis products

• The ODC approved 4,080 m² cultivation, extraction and manufacturing facility is fully scalable with the option to increase to 21,000 m². Althea initially aims to produce approximately 3,000 Kgs of cannabis each year and up to 20,000 Kgs at maximum capacity

• Subject to a supportive business case, Althea may in the future choose to expand this facility beyond its initial first stage to supply increased domestic demand and / or to allow for the servicing of any future export market

• The export of medicinal cannabis products from Australia was legalised in February 2018 through the Narcotic Drugs Amendment (Cannabis) Regulations 2018. The primary driver for the legalisation of exports is to enhance the viability of the medicinal cannabis industry within Australia, in turn improving supply of medicinal cannabis for Australian patients. It allows Australian producers to access overseas markets where importation is legal1

• A number of jurisdictions have recently made medicinal cannabis legal or have announced that they intend to legalise medicinal cannabis in the near future, including the United Kingdom (pop. 66m) and South Korea (pop. 51m)

• As and when appropriate opportunities arise Althea may consider and assess the business case and potential to extend its business model to access potential export demand