PEAK PROCESSING LIMITED — Regulatory Filings 2020

Nov 17, 2020

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ASX Announcement | 18 November 2020 Althea Group Holdings (ASX:AGH)

Althea products approved for sale in Germany

Investment Highlights:

• Germany’s health department (BfArM) has now granted all necessary licenses for the sale and distribution of Althea products in Germany

• An initial order of 2,000 Althea products is expected to be delivered to Althea’s German distribution partner, Nimbus Health GmbH, in December 2020

• Althea will become the first commercial supplier of Australian made medicinal cannabis extract products sold and distributed in the German market to date

• Public health insurers typically cover the entire cost of medicinal cannabis in Germany

18 November 2020: Australian pharmaceutical company Althea Group Holdings Limited (ASX:AGH) (‘Althea’ or ‘the Company’) is pleased to announce the following update regarding its German market entry with distribution partner Nimbus Health GmbH (‘ Nimbus’ ).

German Sales and Distribution

Further to the Company’s announcement of 1 May 2020 regarding the supply and distribution agreement executed with Nimbus, Althea is pleased to announce that Germany’s Federal Institute for Drugs and Medical Devices (Bundesinstitut für Arzneimittel und Medizinprodukte) (‘ BfArM ’) has now granted all necessary licenses required for the sale and distribution of Althea products in Germany.

This significant milestone will see Althea become the first commercial supplier of Australian made medicinal cannabis extract products sold and distributed in the German market to date. With the licenses granted, Nimbus and Althea will now expedite the application of the required import and export permits.

Althea expects the first shipment of 2,000 products to take place in December 2020 and will receive payment for products supplied to Nimbus, along with 50% of the net profit on sales.

Nimbus will adopt the same Althea sales strategy that has been successfully implemented in Australia and the UK in support of the products’ launch in Germany, including a high performance in-field sales team used in conjunction with a localised version of its signature Althea Concierge™ platform. Althea will retain ownership of all real-world anonymised patient data collected through Althea Concierge™.

Significant Market Potential

With a population of approximately 83 million and a reported estimated medicinal cannabis market of €1.5 billion by 2025[1] , the German market represents a significant opportunity for Althea. In conjunction with Nimbus’ strong market presence and local expertise, Althea believes that it is ideally positioned to become the market leading medicinal cannabis brand in Germany.

1 https://www.healtheuropa.eu/exploring-growth-in-the-european-medical-cannabis-market/100849/

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Althea CEO, Joshua Fegan, commented: “We are very pleased that all relevant licenses have been granted. This will now allow Althea to focus on the sale and distribution of our products in the German market through Nimbus. We expect to see rapid uptake given Althea’s reputation and Nimbus’ established market presence in Germany.”

Nimbus Founder and CEO, Linus Maximilian Weber, commented: “ It has been amazing to see how Althea and our team have worked closely together to achieve this milestone. We are very pleased that Nimbus is the first distributor bringing Australian made extracts to patients in Germany and will further increase the value of cannabis-based medicines in country.”

-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: contact@althea.life E: dfrancome@althea.life E: jm@janemorganmanagement.com.au

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

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