Global law firm DLA Piper has advised ASX listed medicinal cannabis company, Althea Group Holdings Ltd (ASX: AGH), on its acquisition of Canadian extraction and contract manufacturing company Peak Processing Solutions, together with Althea's associated AUD30 million capital raising.
The cross-border team was led by Corporate and Projects partner Chris Mitchell who recently joined the firm and is based in Melbourne, Australia. Chris was assisted in Australia by senior associates Dylan Burke and Simone Lim, and solicitors Chanel Mercurio and Tara Alexander. The Australian team was supported by a team of lawyers from DLA Piper's Canadian offices, including Corporate partner Robert Fonn, Finance partner Ilia Danef, Tax partner Kevin Fritz, counsel Nicole Kapos and associates Christopher Pejovic and Natalie Prange.
Althea currently operates within the highly regulated medicinal cannabis markets in Australia and the United Kingdom, with plans to expand into emerging markets throughout Europe and Asia.
Peak Processing Solutions is an early-stage business specialising in extraction, toll processing and contract manufacturing of cannabis-infused edibles, drinks, nutraceuticals and cosmetics products.
The DLA Piper team assisted Althea with all aspects of the transaction including advising on Althea's oversubscribed AUD30 million share placement, negotiating a complex suite of cross-border acquisition documentation, assisting with regulatory and shareholder approval requirements and advising on Australian and Canadian regulatory requirements.
Chris Mitchell said: "This acquisition represents Althea's first entry into extraction and manufacturing of cannabis infused products and allows Althea to expand its current business portfolio into the Canadian recreational market.
We are delighted to assist the Althea team by seamlessly deploying our local equity capital markets, M&A and regulatory expertise in conjunction with our Canadian team's deep experience in the Canadian and North American cannabis industry - continuing our partnership with Althea on this next stage of its journey as one of the leading Australian players in the global cannabis market."
New Canadian cannabis regulations, effective this month, will allow the distribution and sale of cannabis infused products including edibles, topicals and beverages. This regulatory change is set to create potential new market opportunities for participants in the cannabis sector and allow Peak Processing, under Althea's ownership, to support consumer brands wanting to launch recreational cannabis and cannabidiol products
DLA Piper is a leading adviser to participants in the cannabis industry across the globe, from start-up to private and public fundraisings, acquisitions and post-merger, DLA Piper's team covers the range of corporate, intellectual property, technology and R&D, employment, regulatory (from both a life sciences and financial perspective) and litigation services. We are acting across every segment of pharmaceutical, biopharmaceutical, wellness and medical sectors around the globe.