Althea Group has signed a deal to supply the burgeoning South African market with its first shipment expected to be delivered in Q2 2021.
Althea’s wholly-owned subsidiary, Althea Company Pty Ltd, has signed a wholesale supply agreement with MG Biotech Ventures and AfriCann.
Under the arrangement, AfriCann will import a range of Althea-branded finished products for sale and distribution in South Africa, subject to receipt of all required licences and permits.
The deal is forecast to generate around A$650,000 for Althea over the initial two-and-a-half-year term. South Africa’s legal medicinal cannabis industry is forecast to be worth around US$$667 million by 2023.
Althea CEO Josh Fegan said: “We continue to build the Althea brand in highly regulated medicinal cannabis markets across the globe, with South Africa adding to a growing list of territories including Australia, the UK and Germany.”