Growing in areas that matter, cannabis medication producer Althea Group (ASX: AGH) has been increasing its global distribution offerings with the launch of its latest products; the Althea CBD25 soft gel capsules and the THC25 dried flower.
Product development is the cornerstone of market share leadership in an industry still in its infancy. With the last few years seeing a lot of commotion with competitors out-scaling each other with more robust earnings, investors should expect that continuous product development is mandatory to survive in such a fickle market.
Pertaining to local laws and regulations around cannabis medication, Althea has commenced the release of an exclusive range of soft gel capsules containing Althea’s trusted full-spectrum cannabis extract.
Each capsule will contain 25mg of cannabidiol (CBD) and less than 0.25mg of delta-9-tetrahydrocannabinol (THC) that will be consumed orally, where its effects are felt 10 minutes after consumption. Compared to many of its other products that require inhalation (i.e. dried flower products), gel capsules are the gold standard of medication as consumers have identified it as their ideal choice of delivery format – where anyone with visual or dexterity impairments, taste intolerances or aged care patients can consume the capsule without complications.
“The development and release of our new soft gel capsule range confirms Althea’s position as a market leader and product innovator in the global medical cannabis industry,” said Managing Director and CEO, Joshua Fegan.
With Althea’s fixation on cannabis extracts, the Company hasn’t forgotten about the consumers that prefer cannabis dried flower products and has capitalised on this market opportunity with the release of Althea THC25. This new ultra-high THC cannabis medication will be Althea’s highest-concentrated product, containing 25% THC and less than 1% CBD. Subject to regulatory approvals, the product will be available across all of the Company’s ‘core’ international markets; Germany, UK and Australia.
“We are equally excited about expanding our dried flower range. The growth of the flower segment in Australia has been significant over the previous 12 months and as the undisputed market leader in cannabis extracts, it is strategically important for Althea to have strong market share in the flower category as well.”
Sales during the previous quarter was acquired primarily through the Company’s subsidiary, Peak Processing Solutions, where Peak achieved $3.6 million in sales, a significant 414% gain over the previous-corresponding-period. The other avenue for global distribution, via Althea, achieved $2.9 million in sales for the year, a 130% total increase year-over-year.
AGH shares have mainly tracked lower along with the rest of the cannabis industry. Hovering between $0.06 and $0.18 since the start of 2022, the stock has gotten quite comfortable to remain near its all-time lows where it will need some positive sentiment to pull it out of the lull it is experiencing – currently, shares sit on $0.096 at the time of writing after jumping 9% on open.
Trading Desk Assistant at Emerald Financial
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