Althea Group Announced Investor Update And Board Changes

Althea Group Announced Investor Update And Board Changes

An Australian owned licensed importer and producer of medical cannabis, Althea Group Holdings Ltd (ASX: AGH) has published a presentation for the investors on 7 March 2019. The presentation contains an update about AGH’s operations and product range, its subsidiaries and its activities.

In Australia, AGH had recorded continuous month-on-month patient and prescriber growth. AGH commenced its supply of medicinal cannabis in Australia from May 2018, with only 4 patients who were prescribed Althea medicinal cannabis products, and now the patients have reached to 402 in number. In the first half of FY2019, the revenue on Sales of Cannabis Products stood at $174,000. There was a fruitful launch of MEDIC on Health Care Professionals education platform which was accredited by RACGP.

Althea has secured all the needed Australian Office of Drug Control (ODC) licenses, for its functions comprising of Import, Cultivation, Manufacturing and Export Licenses. The ODC has permitted AGH, the complete suite of applicable licenses in Australia, for it to accomplish its business plan.

AGH had notified the market, about its arrival into the UK Medicinal Cannabis market on 7 February 2019. The UK market would form a second major distribution channel for AGH’s products produced in Australia, (once they are available) to be projected in 2020.

On the global expansion front, AGH, is at present, exploring opportunities in South Korea, where medicinal cannabis is legalised.  In France, AGH anticipates receiving the legalization in 1H2020. AGH would continue to monitor the status of other upcoming markets, along with the USA, where federal legalisation of medicinal cannabis would likely to be extremely regulated.

Althea Medicinal Cannabis

At present, AGH is selling 4 medicinal cannabis oils, and one cannabis dried flower product to eligible patients in Australia, and its availability is expected in the UK, in April 2019. In 1H 2019, AGH has planned to launch 2 more products in Australia: Soft Gel medicinal cannabis oil capsules and 15ml Oromucosal spray (mouth spray).

Althea Concierge was launched in September 2018 and is a complimentary service. Around 211 Health Care professionals (HCP) registrations and 1045 patients have been registered until now. Althea Concierge is creating a progressing channel that is proactively involved with AGH, its products and educational content.

For the half-year ended 31 December 2018, the company recorded the total revenue of $182k. The total assets stood at $21,762 as on 31 December 2018 from $3299 as on 30 June 2018. The net assets stood at $21,494 as on 31 December 2018 from $3136 as on 30 June 2018.

AGH made another announcement on 7 March 2019, about stepping down of its Non-Executive Director, Mr Gregg Battersby. He had taken charge of his designation, since the company was initially listed, back in September 2018. The Board of the company has expressed its gratitude for Mr Battersby’s contribution to the company.

Mr Jakob Ripshtein, President of Aprhria Inc, is being proposed to be appointed as the successive, Non-Executive Director of the AGH.  The proposal of his appointment would continue Aphria’s representation on the AGH board. Josh Fegan, CEO of AGH, commented that the company was thrilled, at the proposal of Mr Ripshtein joining its board, and welcomed the amount of experience he would be bringing to AGH.

Mr Jakob Ripshtein, President of Aprhria Inc, stated that he was looking ahead to expand his engagement with AGH as it continues to build its Australian and global businesses.

The stock of the company is currently trading at A$0.360 (as on 8 March 2019, 3:11 pm AEST) down by, 2.703% from its previous close. The company has a market capitalization of circa A$75.22 million, with approximately 203.31 million shares outstanding.


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