NEWS: Althea Group buys into Canada’s cannabis market

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Russell Kennedy has advised the founders of Peak Processing Solutions (Peak) on its sale to Australian medicinal cannabis company Althea Group Holding Limited (ASX:AGH) (Althea).

This news has been covered by Lawyers Weekly, read more here, and by Australasian Lawyer, read more here.

Legal advisors:

Russell Kennedy Lawyers: Peak (Australia)
Torkin Manes: Peak (Canada)
DLA Piper: Althea (Australia & Canada)

Peak is a Canadian extraction and contract manufacturing company, specialising in the extraction, processing and manufacturing of cannabis-infused edibles, drinks, nutraceuticals and cosmetics products. Peak is expected to be a first mover in the cannabis-infused market in Canada, as part of the new regulations.

Althea is an Australian licenced producer, supplier and exporter of pharmaceutical grade medicinal cannabis and is listed on the ASX. It currently operates within the highly regulated medicinal cannabis markets in Australia and the United Kingdom and has plans to expand into emerging markets throughout Europe and Asia. Althea offers a range of education, access and management services to support eligible patients and healthcare professionals in navigating medicinal cannabis treatment pathways.

The new Canadian cannabis regulations, effective this month, will allow the distribution and sale of cannabis infused products including edibles, topicals and beverages. This regulatory change is set to create potential new market opportunities for participants in the cannabis sector and allow Peak to support consumer brands wanting to launch recreational cannabis and cannabidiol products.

Russell Kennedy advised Peak on all Australian aspects of the transaction, including assisting with negotiating a complex suite of cross-border acquisition documentation, assisting with regulatory and shareholder approval requirements and advising on Australian regulatory requirements.

Russell Kennedy received instructions from Torkin Manes in Canada via the Ally Law International Alliance.

The Russell Kennedy team was led by Principal Andrew Parlour and Special Counsel Rory Maguire.

Rory Maguire congratulated Peak on its sale to Althea: “We are thrilled to have assisted the founders of Peak on its sale to Althea. Peak is a market leader in the extraction and manufacturing of cannabis infused products and the acquisition offers significant opportunities into the Canadian market for the Althea, in particular given the new Canadian cannabis regulations."

He added: "We were pleased to provide our local M&A and regulatory expertise to Peak in conjunction with Canadian law firm Torkin Manes, our Ally Law Alliance partner with deep experience in the Canadian and North American cannabis industry.”

Further assistance

For assistance regarding mergers and acquisitions, please contact Andrew Parlour on (03) 9609 6818 or Rory Maguire on (03) 8602 7246.

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