Peak Processing completes strategic reset to focus on North American THC beverages

Althea Group Holdings Ltd. ( (AU:PKP) ) has issued an announcement.

Peak Processing Limited has completed a strategic reset, exiting its legacy UK and Australian medical cannabis operations to concentrate on its North American THC beverage business. The company has overhauled its board and executive team, rebranded, and strengthened its balance sheet through capital raisings to support working capital, production upgrades and operational efficiency.

During the half-year to 31 December 2025, Peak generated customer receipts of $9.35 million and revenue of $5.53 million, while maintaining around a 33% share of the Canadian THC beverage market and a 98% on-time, in-full fulfilment rate. A non-cash goodwill impairment drove a statutory loss, but cost-reduction and rightsizing programs are expected to deliver about $2.6 million in annualised savings, materially lowering fixed overheads.

The company has bolstered revenue visibility with long-term contracts with Organigram Global and New Leaf Canada and a 250% expansion of its manufacturing agreement with St. Peter’s Beverages, which should significantly lift production volumes. In the U.S., Peak produced and sold more than 680,000 cans in the half, secured a long-term deal with Funky Buddha in Florida, and commissioned an emulsion lab for its patent-pending Envision technology to support growth in a rapidly emerging category.

Entering the second half of FY26, Peak reports a strengthening order pipeline ahead of the key summer season and a growing funnel of prospective customers for contract manufacturing. Management believes the structural reset, reduced cost base, improved liquidity and expanding commercial contracts position the company as a focused North American beverage manufacturer with enhanced prospects for near-term growth.

The most recent analyst rating on (AU:PKP) stock is a Hold with a A$0.02 price target. To see the full list of analyst forecasts on Althea Group Holdings Ltd. stock, see the AU:PKP Stock Forecast page.

More about Althea Group Holdings Ltd.

Peak Processing Limited, formerly Althea Group Holdings, operates in the North American cannabis beverage sector, focusing on THC-infused drinks. The company manufactures and distributes branded and contract beverages, holding about a one-third share of the Canadian THC beverage market with products sold across all 10 provinces, and is expanding its commercial footprint in the U.S. through long-term manufacturing agreements and proprietary emulsion technology.

Average Trading Volume: 1,906,456

Technical Sentiment Signal: Sell

Current Market Cap: A$18.54M

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