• AGH signs binding term sheet to sell pharmaceutical assets to Tasmanian Botanics for $1 million
• Divestment allows AGH to focus on rapidly expanding global THC-infused beverage market
• Peak Canada and Peak USA well-positioned as leaders in THC beverage market

Althea Group Holdings (ASX:AGH) has signed a binding term sheet to sell certain assets of its wholly-owned subsidiary, Althea Company Pty Ltd, to Tasmanian Botanics Pty Ltd for $1 million, plus a revenue-sharing arrangement on any residual pharmaceutical inventory sold. The divestment allows AGH to focus on the rapidly expanding global THC-infused beverage market, a segment experiencing growing demand, particularly in North America. AGH's subsidiaries, Peak Canada and Peak USA, are well positioned as leaders in the THC beverage market, with cutting-edge facilities, scalable production capabilities, and proprietary Envision™ Emulsion technology that ensures fast-acting, consistent, and high-quality THC-infused beverages. Peak USA successfully completed its inaugural commercial manufacturing run in December 2024, marking a critical step in scaling U.S. operations. AGH is leveraging its expertise to capitalise on the growing consumer preference for THC beverages, driven by increasing legalisation and innovation. The transaction aligns with AGH's vision to create shareholder value by focusing on high-growth, lower-risk product categories.

AGH expects to see continued growth in the global THC-infused beverage market, driven by expanding legalisation and product innovation. The company's Peak subsidiaries in Canada and the USA are well-positioned to capitalise on this opportunity.

AGH will continue to focus on the rapidly expanding global THC-infused beverage market, leveraging the capabilities of its Peak subsidiaries in Canada and the USA to drive growth and create shareholder value.