Althea subsidiary Peak Processing Solutions has received a purchase order from Cronos Group offshoot Peace Naturals Project valued at around CAD$134,000 and part of a larger one-year commercial services agreement.
Under the deal, Peak will perform the hydrocarbon extraction of cannabis biomass and
process the extract into cannabis concentrate products, ready for sale into the Canadian adult-use market.
The ability to produce hydrocarbon-extracted cannabis concentrates is in limited supply in Canada and Peak is among a handful of processors able to service this in-demand product category. Production is expected to begin in March 2021.
Althea CEO Joshua Fegan said: “It is pleasing to see how quickly the Peak business is taking off this year. We look forward to continuing to secure supply agreements with other like-minded players in the fast-growing Cannabis 2.0 space and further demonstrating the world-class cannabis extraction capabilities of Peak.”