Medicinal cannabis and research company Althea Group (ASX: AGH) has today announced that its Canadian subsidiary, Peak Processing, has received a binding purchase order from WeedMD Rx (A subsidiary of canadian listed company WeedMD Inc, TSX-V: WMD).
The CAD$130,000 order will see Peak perform a variety of services for WeedMD, including hydrocarbon extraction of fresh-frozen cannabis biomass used to produce live resin cannabis concentrate products for sale in the Canadian adult use cannabis market
Cannabis for recreational use has been legal in Canada since 2018. The market saw sales of CA$2.6B in 2020, a rise of 120% from 2019.
“We are pleased to have received this initial purchase order from WeedMD, a like-minded innovator in the Canadian adult-use cannabis market. The PO and associated commercial agreement provide further recognition from an industry leader that Peak has the capability to produce and deliver cannabis products of the highest quality”, said Althea CEO, Joshua Fegan.
“Peak continues to attract strong interest from companies across Canada and the United States looking to enter the Canadian recreational cannabis market.”
“We are extremely excited to be working with the Peak team on this first of its kind product for our company and I have the utmost confidence in our execution-focused team of experts. Live resins are a premium offering that are in high demand in the Canadian market and I am confident we have a product that will exceed expectations,” said WeedMD Executive Chairman & CEO, George Scorsis.
The announcement continues an exciting period for Althea, after recently becoming the first Australian producer of commercial cannabis products to be granted the required licenses in Germany for sales and distribution.
The licenses were granted by Germany’s health department alongside Althea’s partnership with German distributor Nimbus Health GmbH which will pay for 2,000 cannabis products up front and then share 50% of profit with Althea.
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