Althea Group Holdings (ASX:AGH) Secures $2 Million in Funding
Funding Overview
Althea Group Holdings Limited (ASX:AGH) has received binding commitments for $2 million through a Loan Notes Placement. This funding, aimed at expanding Peak Processing Solutions’ Canadian operations, will facilitate supply chain optimisation initiatives at the Ontario manufacturing facility and provide general working capital.
Loan Notes Details
The placement involves the issuance of 2 million unsecured Loan Notes at a price of $1.00 each. These Loan Notes are structured as a pure debt instrument with an interest rate of 0% and may convert into ordinary shares at a conversion price of $0.03, subject to shareholder approval. Should the conversion not be approved, AGH will repay the Loan Notes in cash within one year.
Use of Funds
The $2 million raised will be used strategically to enhance Peak’s operations. Plans include increasing inventory of core materials, linking wastewater systems, expanding production capacity by an additional 3 million beverage units, and automating tax stamp applications. These initiatives, executed during Peak’s quieter period, are designed to improve operational efficiency and strengthen AGH’s position in Canada’s evolving cannabis market.
Executive Comments
AGH CEO Joshua Fegan remarked, “This funding strengthens our ability to deliver key initiatives and reinforces our growth in key markets. Enhancing Peak’s operations positions us to capitalise on Canada’s evolving cannabis landscape, especially in cannabis beverages, where we hold a strong niche. These investments will solidify our leadership in this high-growth category.”
Management and Future Considerations
The Loan Notes Placement is led by Taurus Capital Group Pty Ltd, with an associated fee of 6% of funds raised, alongside the issuance of approximately 25 million unlisted options, also subject to shareholder approval. The company intends to convene a general meeting for this purpose in due course.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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