Althea Group Holdings (ASX: AGH) has secured $4 million in funding to accelerate the commercial expansion of its THC beverage business in North America. The funds were raised through a share placement and loan notes placement, attracting support from both new and existing sophisticated investors.
The company will allocate the capital to scaling its Peak USA THC beverage production, expanding its Canadian operations, and strengthening working capital across its business.
Expanding North American THC beverage operations
Althea’s wholly-owned subsidiary, Peak Processing Solutions, focuses on manufacturing and distributing cannabis-infused beverages in Canada and the United States. The company has recently completed its first commercial production run in the U.S., with the new funding supporting further expansion.
Managing Director Joshua Fegan said the investment would solidify Peak’s leadership in THC beverages.
“This strategic funding strengthens Peak North America’s position and allows us to rapidly scale in the U.S. while continuing to build on our success in Canada,” Fegan said.
Capital allocation and operational improvements
The $4 million will be directed towards several key initiatives, including:
- Increasing Peak USA’s production and distribution capacity
- Securing critical raw materials for Canadian operations
- Expanding wastewater infrastructure
- Automating tax stamp application processes
- Boosting production capacity by an additional 3 million THC beverage cans
Funding structure and shareholder approval
The capital raise includes a placement of 125 million ordinary shares at $0.02 per share, raising $2.5 million, and the issue of 1.5 million unsecured loan notes at $1.00 each, raising $1.5 million. Shareholder approval will be required for the issuance of 111 million shares and the potential conversion of loan notes into equity.
Directors Vaughan Webber and Joshua Fegan have subscribed for up to $120,000 in the share placement, subject to shareholder approval at a meeting scheduled for late March 2025.
