Peak Partners With Boston Beer Company
TECUMSEH, ON – Peak Processing Solutions, a subsidiary of Althea Group Holdings Limited (ASX: AGH), is a developer, manufacturer, and distributor of cannabis infused edible, topical, and concentrate products announced that the Company has entered into agreements with WeedMD Rx Inc., a subsidiary of (TSXV: ENTG) (OTCQX: WDDMF) and BBCCC, Inc., a subsidiary of the Boston Beer Company Inc. (NYSE: SAM).
The parties have entered into various agreements in connection with the development, production, marketing, distribution and sale of non-alcoholic cannabis-infused beverages in Canada. The terms of the agreements are five years.
Supply and manufacturing agreement
Under the supply and manufacturing agreement, Peak will be the exclusive manufacturer of all cannabis beverage products produced and sold in Canada under BBC branding for the term of the agreement, with a right of first refusal to a U.S. potential future partnership.
Entourage will purchase the finished products from Peak, and leverage its sales force and sales licences to market, distribute and sell the products in Canada on behalf of BBC.
Under the development agreement, Peak will provide research and development services, including laboratory support, for the purposes of developing new products and testing various product formulations and recipes, all activities to be completed at Peak’s facility in Tecumseh Ontario.
BBC will provide up to USD$2m to fund capital expenditure costs associated with matters including the construction and furnishing of laboratory facilities and additional production-related equipment at the Peak facility, with no less than USD$500,000 to be committed to enhancing Peak’s beverage manufacturing capabilities.
In addition, BBC will pay Peak a commitment fee of USD$285,000 for each year of the term of the agreement, payable in equal monthly amounts and reduced according to total product sales in the preceding month. The total commitment fee over the term is USD$1.42m.
Peak’s Founder & President Gregg Battersby said: “We are excited to partner with like-minded companies that see the need for true innovation in the space. This three-way partnership is the recipe for success through investment into innovation and pushing the status quo of cannabis infused products.” He continued, “As we expand on and further solidify our working relationship with Entourage, we are humbled that an established innovator such as Boston Beer appreciates the unique capabilities and competitive advantage that Peak offers its partners, and has committed to invest in multiple facets into a long-term partnership”
BBCCC, Inc. Head of Cannabis Paul Weaver said: “Peak has built a world class facility in Canada, with the right staff and systems in place to ensure every drink is of the highest quality. Entourage is one of Canada’s oldest and most respected regulated cannabis cultivators. Their unwavering commitment to quality is exactly what we look for in our partners. We are excited to begin making some amazing drinks together.”
Entourage CEO and Executive Chair, George Scorsis said: “We’re thrilled to be collaborating with Boston Beer and Peak to produce, market and sell the next generation of cannabis-infused beverages to discerning consumers looking for alternate consumption choices. Leveraging our collective industry expertise together with Entourage’s cannabis research and advanced branding strategies will establish our product portfolio with another unique offering. In addition, this provides an opportunity to further explore our collective reach into international markets.”
(This information is primarily sourced from Peak Processing Solutions. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).
Reunion Neuroscience to be Acquired by MPM BioImpact in $13.1 Million All-Cash Deal
LOS ANGELES-- Reunion Neuroscience Inc. a clinical-stage biopharmaceutical company specializing in innovative therapies for underserved mental health conditions, has announced a definitive arrangement agreement with MPM BioImpact, a leading biotechnology investment firm. Under the agreement, ...
California’s Regulated Cannabis Market Sees Decline in Sales and Tax Revenue in Q1 2023
LOS ANGELES-- California's hopes of increased consumer participation in the regulated cannabis market did not translate into a boost in licensed retail sales or state tax revenue during the first quarter of 2023. According to ...
C21 Investments Repays $30 Million Debt to CEO Sonny Newman
LOS ANGELES-- C21 Investments Inc., a vertically integrated cannabis company, announced today the successful completion of the full repayment of its $30 million senior secured note owed to Sonny Newman, the Company's President and Chief ...