Althea Group Holdings Ltd. completed its acquisition of Canadian cannabis products manufacturer Peak Processing Solutions for C$4.1 million in cash and 6,833,839 shares.
Under the deal, Australian medical cannabis supplier Althea issued 5,502,455 shares to Gregg Battersby, a former director of Peak, and 1,331,384 shares to eight employee shareholders of Peak.
Battersby and the employee shareholders are also eligible for a further 19,018,007 shares, subject to certain performance targets.
Completion of the transaction was preceded by Althea raising A$30 million from new and existing institutional investors. The capital was raised to fund the cash portion of the acquisition.
Tecumseh, Ontario-based Peak was started by several former employees of Althea and focuses on cannabis-infused edibles, drinks and other products in the Canadian cannabis market.