Althea Group Secures $2.55m to Expand Peak Processing’s 35% Canadian Market Share
Althea Group Holdings has secured $2.55 million through a share placement to fuel expansion of its Canadian THC beverage manufacturing arm, Peak Processing, as it targets growth in both Canadian and US markets.
- Raised $2.55 million via share placement at $0.018 per share
- Strategic focus shifted solely to THC beverage manufacturing through Peak Processing
- Peak holds ~35% Canadian market share with $15.5 million revenue in FY25
- Growth initiatives include product expansion, multi-packs, and US market entry
- Lead manager Taurus Capital Group receives options and placement fees
Capital Raise to Support Growth
Althea Group Holdings (ASX – AGH) announced a successful capital raise of $2.55 million through a share placement priced at 1.8 cents per share. The funds are earmarked for growth initiatives, customer development, and selected capital expenditure projects. This raise comes as the company completes a strategic reset, now singularly focused on THC beverage manufacturing through its Canadian subsidiary, Peak Processing.
Peak Processing – Market Leader in Canada
Peak Processing operates a 9 million-can annual capacity facility in Windsor, Ontario, and commands approximately 35% of the Canadian THC beverage market. In FY25, Peak generated around $15.5 million in revenue, producing over half a million cans in the US. The company leverages its proprietary Envision Emulsion™ technology, which underpins its product quality and manufacturing capabilities.
Market Dynamics and Growth Drivers
The Canadian THC beverage market is experiencing robust year-on-year growth, supported by regulatory easing and shifting consumer preferences. Key trends include the move towards direct-to-store distribution, introduction of multi-packs, and increasing acceptance of on-premise and public consumption. In the US, THC beverages are gaining shelf space in mainstream alcohol retail outlets, signaling growing market acceptance.
Strategic Initiatives for FY26
Under interim CEO Barry Katzman, Peak plans to expand its product range through new entrants and existing customers, launch proprietary brands, and increase sales of ancillary products like live resin extraction. Cross-border brand introductions between Canada and the US and the rollout of multi-packs are also key initiatives. The company’s partnership with a third-party manufacturing site in Florida aims to accelerate US market penetration.
Financial and Shareholder Considerations
The share placement was managed by Taurus Capital Group, which will receive a 6% fee and 22 million unlisted options exercisable at 2.5 cents until September 2028. The capital raise and strategic focus position AGH to capitalize on the rapidly evolving THC beverage sector, though investors should remain mindful of regulatory and market risks inherent in this nascent industry.
Bottom Line?
With its strategic reset complete and capital secured, AGH is poised to deepen its foothold in the burgeoning THC beverage markets of Canada and the US.
Questions in the middle?
- How will regulatory changes in the US states impact Peak’s expansion plans?
- What are the expected timelines and financial impacts of the new product launches and multi-pack introductions?
- How sustainable is Peak’s market share amid increasing competition in the THC beverage sector?