Althea Group Holdings Ltd (ASX: AGH), a leading FMCG organisation specialising in the manufacturing, sales, and distribution of THC beverages, has announced it has secured $2.55 million through a share placement to drive growth initiatives. The company, through its innovative business unit Peak Processing Solutions, develops premium, compliant products that resonate with adult consumers in regulated global markets, including USA and Canada.
The placement involved the issue of approximately 141.7 million ordinary shares at $0.018 each to sophisticated and professional investors in Australia. Managed by Taurus Capital Group, the funds raised will be directed towards targeted growth initiatives, customer development activities, and selected capital expenditure projects at Peak Processing, AGH’s wholly-owned subsidiary and Canada’s market-leading THC beverage manufacturer.
Interim CEO Barry Katzman stated that the capital raise comes at a pivotal time following the completion of AGH’s strategic transformation. The company is focusing on leveraging Peak’s proprietary Envision Emulsion™ technology and favourable market conditions to expand its presence in both Canadian and US markets. Peak holds a national market share of approximately 35% in Canada and is strategically positioned for capital-light expansion into the US.
AGH believes that the market for THC beverages is experiencing strong growth, driven by factors such as emerging direct-to-store distribution, the introduction of multi-packs, and increasing consumer acceptance. The company anticipates that these trends will accelerate revenue opportunities for Peak, supported by its competitive advantages, including a diverse range of SKUs, expertise in various beverage types, and long-term contracts with industry-leading manufacturers.
