Peak Processing Limited (ASX: PKP), a leading manufacturer of THC-infused beverages that develops premium, compliant products for adult consumers in regulated global markets, including USA and Canada, announced on 1 May 2026 that it has successfully secured A$2.4 million (before costs) through binding commitments for an unsecured Loan Note issue. The capital raise, from sophisticated and professional investors, is primarily earmarked to fund the company’s Q4 FY26 production ramp-up, supporting an inventory build for approximately 1.5 million beverage units.
This funding initiative is critical for Peak Processing as it aims to achieve a positive working capital position following the conversion of the Notes, subject to shareholder approval at A$0.015 per share. The company noted that this raise completes the balance sheet repair undertaken in FY26 under new leadership and follows a period of significant operational improvements. Notably, March 2026 marked Peak Processing’s first month of positive EBITDA under its new operating model, reporting approximately A$159,000 EBITDA on around A$1.2 million revenue.
Managing Director and CEO, Barry Katzman, stated that the raise provides the necessary inventory and working capital to deliver on contracted Q4 production volumes and further build the US operating footprint. Non-Executive Chairman, Manik Pujara, emphasised that every dollar is allocated against existing purchase orders, capital expenditure with sub-12-month payback, and working capital to convert Q3’s operational momentum into Q4 cash generation. The funds will be allocated approximately A$1.5 million for inventory build, A$445,000 for accretive capital expenditure, and A$455,000 for general working capital and offer costs.
High-conviction investment specialist Powerhouse Ventures (ASX: PVL) acted as the sole lead manager for the Loan Note raising, with its Funds Management division also participating as a cornerstone investor on the same terms. The conversion of the Notes and other related security issues remain subject to shareholder approval, with a general meeting expected to be convened in due course to consider these matters.
