Publicly traded cannabis company Althea Group (ASX:AGH) has announced a new deal that will see the company producing cannabis for Canada’s recreational cannabis market.
Althea Group’s Canadian subsidiary Peak Processing Solutions has received a purchase order from WeedMD RX, a subsidiary of Canadian cannabis giant WeedMD Inc (TSXV:WMD). The purchase order is valued at $130,000 ($CAD130,000) and is part of a one-year commercial agreement between the companies.
The supply deal will see Peak Processing perform several services for WeedMD, including extracting hydrocarbon from fresh-frozen cannabis biomass. This is a key part of a process that turns cannabis flower into live resin cannabis concentrate, which is consumed through vaping or smoking.
Live resin cannabis concentrates are becoming increasingly popular on the adult-use market, as concentrates are not dried or cured – leaving the cannabis’s flavour, fragrance, and terpene profile unchanged. According to WeedMD executive chairman and CEO George Scorsis, life resins are “in high demand in the Canadian market.”
Peak Processing will also formulate and package WeedMD’s cannabis concentrates.
This latest export deal comes only three months after Althea secured an export deal that made them the first Australian medical cannabis company in the German market. Last September, Peak Processing also entered Canada’s cannabis-beverage market.
According to Althea Group CEO Josh Fegan, Althea was “pleased” to receive the WeedMD-supply deal, as it is proof industry leaders are recognising the company’s ability to deliver high-quality cannabis products.
Peak continues to attract strong interest from companies across Canada and the United States looking to enter the Canadian recreational cannabis market.
Althea expects Peak Processing to start delivering WeedMD’s live cannabis concentrates from March this year.