Dozens of unsecured creditors of Althea Company have lodged claims worth up to A$3 million as the fall out continues over the firm’s exit from the medicinal cannabis sector.
The subsidiary, which is fully owned by Althea Group Holdings, entered voluntary administration on July 9, shortly after completing the $1 million sale of its pharmaceutical assets to Tasmanian Botanics.
The sale proceeds were paid directly to secured creditor Causeway, an investment company, which still holds a $500,000 claim against Althea Company.
Documents obtained by Cannabiz show that of 65 unsecured creditors, one was a $72.4m related-party claim from its parent, AGH. The remaining 64 creditors account for between $2.7m and $3m.
Among the creditors are Tasmanian Alkaloids, trading as Extracts Bioscience, which has claimed $1m, Colombian firm Clever Leaves ($234,000), Epsilon Clinics ($42,000), Epsilon Pharma ($19,600), and UK business Happy Health ($227,000).
In January, Happy Health successfully lodged an application in the UK to wind up AGH’s UK subsidiary, MMJ Clinic Group, of which it is a creditor.
Earlier, in October 2024, AGH sold its UK clinic operation, MyAccess Clinics, to Montu UK. While the transaction did not directly involve Althea Company, administrator Sule Arnautovic from Salea Advisory said it received proceeds of $1m from the deal and was now facing a “potential preference claim” from the liquidator of MMJ Clinic Group.
Asked at a meeting of creditors about the $72m claim lodged by AGH, Arnautovic said it “reflected many years of funding” provided by the parent.
At the time of the appointment of Salea Advisory, he said Althea Company was no longer trading or employing staff – having sold assets to Tasmanian Botanics – and held limited assets, including $50,000 in cash and $57,000 in unpaid invoices.
The largest asset listed was an intercompany debt of approximately US$22 million (A$33.8m), owed by AGH’s Canadian subsidiary, Peak Processing Solutions.
Arnautovic said further investigations were needed to determine how much of that could realistically be recovered.
A full report to creditors is due by August 5, ahead of a second meeting where stakeholders will vote on whether to proceed with a Deed of Company Arrangement, liquidation, or end the administration.
Cannabiz approached AGH chief executive Josh Fegan for comment.