The share price of Althea Group Holdings Ltd [ASX:AGH] jumped up 7.22% at time of writing to trade at 52 cents.
The company announced a new manufacturing and distribution deal for cannabis-infused beverages in Canada.
Source: Optuma
Althea Group in expansion mode
In a recent article, we took a look at the company’s expansion into Germany.
Now in more good news…
Althea group announced an agreement with The Tinley Beverage Company Inc [CNSX:TNY] for the manufacture and distribution of three non-alcoholic cannabis-infused beverages into the Canadian market.
- Tinley’s™ ’27 elixirs
- Coconut Cask
- Cinnamon Cask and Almond Cask
The partnership is between Althea Group’s subsidiary Peak Processing Solutions and The Tinley Beverage Company.
Under the agreement, Peak will hold exclusivity for the manufacture and distribution of Tinley’s products in Canada until Tinley meets established minimum quantities.
An initial order of more than CA$100,000 in revenue for Peak is planned for delivery in early Q1 2021.
Strong consumer demand is expected to result in similar monthly orders.
The initial agreement is for three years.
The new agreement follows on from the agreement Peak completed in November 2020 with Earth Kisses Sky to produce two tropical products.
Althea Group and the future
Althea and their subsidiary Peak Processing look to be building a solid base for the future.
Looking at the chart below, the share price has moved sideways over the last few weeks with the movements in the bars getting smaller, usually an indication a breakout may be coming.
Source: Optuma
With the price moving up to 52 cents at time of writing, that breakout may be to the upside.
Should it continue up, then the level of 66 cents may provide future resistance.
If price falls back again, then 39 cents and 31 cents may be the levels that halt the fall.
With a market cap of $116.36 million at time of writing, the company is still small.
However, the company looks to be building for the future and with the cannabis sector only looking to increase, Althea may be a good share to have on a watch list.
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Regards
Carl Wittkopp
For Money Morning
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