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Cannabis company acquires Canadian extraction company to expand business
DLA Piper has advised cannabis manufacturer Althea on the acquisition of Canadian extraction company Peak Processing Solutions, advised by Russell Kennedy Lawyers.
Naomi Neilson
Firm: DLA Piper (Althea Group Holdings Ltd) & Russell Kennedy Lawyers (Peak Processing Solutions)
Value: Undisclosed.
Area: M&A.
Key players: The DLA Piper cross-border team was led by partner Chris Mitchell, with assistance from senior associates Dylan Burke and Simone Lim, with solicitors Chanel Mercurio and Tara Alexander. The Australian team was supported by Canadian partner Robert Fonn, Ilia Danef and Kevin Fritz, as well as counsel Nicole Kapos and associate Christopher Pejovic.
The Russell Kennedy Lawyers team was led by special counsel Rory Maguire and principal Andrew Parlour, with assistance from associate Stephanie Quatela.
Deal significance: Althea is currently operational within the highly regulated medicinal cannabis market in Australia and the UK, with plans to expand throughout Asia and Europe. Peak Processing Solutions specialises in extraction, toll processing and contract manufacturing of cannabis-infused edibles and drinks.
The DLA Piper team assisted Althea with all aspects of the transaction. One of which was advising on Althea’s oversubscribed $30 million share placement and negotiating a suite of cross-border acquisition documentation.
Mr Mitchell said: “This acquisition represents Althea’s first entry into extraction and in 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 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.”
The Russell Kennedy team advised Peak on all Australian aspects of the transaction, including assisting with negotiating a complex suite of cross-border acquisition documentation, assisting regularly on shareholder approval requirements and advising on Australian regulatory requirements.
Mr Maguire said: “We are thrilled to have assisted the founders of Peak on its sale to Althea. Peak is a market leader in the extraction and manufacturing of cannabis infused products and the acquisition offers significant opportunities into the Canadian market for Althea, in particular given the new Canadian cannabis regulations.”
Naomi Neilson
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
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