• Binding commitments received for $2.0 million Loan Notes Placement
• Funds to be used for expanding Peak's Canadian operations and supply chain optimisation
• Loan Notes may become convertible into ordinary shares subject to shareholder approval

Althea Group Holdings (ASX:AGH), a global leader in the manufacturing, sales and distribution of cannabis-based medicines and recreational cannabis products, has received binding commitments for the issue of 2.0 million unsecured loan notes (Loan Notes) at $1.00 each, raising $2.0 million in aggregate (Loan Note Placement). The Loan Notes may become convertible into ordinary shares (Loan Note Shares) subject to shareholder approval. The $2.0 million funding (less fees) will be allocated towards expanding Peak Processing Solutions' (Peak) Canadian operations, including supply chain optimisation initiatives at the company's Ontario-based manufacturing facility. These initiatives include increasing core materials inventory, connecting wastewater to the mains, expanding capacity for an additional 3 million beverage units, automation for the application of tax stamps, and onboarding of a substantial vape carts customer. These investments will enhance operational efficiency and position the company for sustained growth in the Canadian market. The Loan Note Placement was lead managed by Taurus Capital Group Pty Ltd, and the Lead Manager received a fee of 6% of the total amount raised and will be issued 25.0 million unlisted options with an exercise price of $0.04 and expiring on 28 February 2027, subject to shareholder approval.