The Althea Group Holdings Ltd (ASX: AGH) share price will be on watch this morning. This comes after the company announced that it signed a supply and distribution agreement with a UK medical cannabis supplier.
At yesterday's close of market, the Althea share price finished the day at 43 cents.
New agreement
Althea advised it has entered a contract with medicinal cannabis supplier Lyphe Group to supply and distribute its products in the United Kingdom, and the nearby island Jersey.
Under the terms, Althea will supply Lyphe with its medicinal cannabis products for non-exclusive distribution rights across the United Kingdom. Patients will have access to the products through The Medical Cannabis Clinics (TMCC). This will be dispensed through Lyphe's own pharmacy, Dispensary Green.
In Jersey, TMCC recently opened up, thus allowing Lyphe to establish a new distribution structure. Althea will grant Lyphe exclusive distribution rights for Jersey, where it seeks to support thousands of medicinal cannabis patients.
Subject to customary conditions, the deal is set for an initial 12 months, with the option to extend further.
What did both parties say?
Althea CEO Mr Josh Fegan commented on the new partnership:
The supply and distribution agreement with Lyphe Group is an important milestone in Althea's UK strategy, as the Company continues to increase its market share in the rapidly growing territory. The agreement with Lyphe Group creates supplementary growth for the Company, whilst further enhancing our brand awareness and standing in the marketplace. We look forward to the Althea brand continuing to have strong representation on Lyphe Group's formulary in the UK and Jersey.
Lyphe Group CEO, Mr Dean Friday added to Mr Fegan's comments:
It's hard to believe that a few months ago none of the patients in Jersey were able to obtain critical medical cannabis treatments, instead they were driven to the black market. Now, not only does LYPHE Group have an operating clinic on the island, TMCC Jersey, it also has a fantastic pharmacy partner in Reid's Pharmacy chain. We are pleased that Althea has come onboard with us as we work to ensure every patient has a consistent and affordable supply of medical cannabis.
About the Althea share price
The Althea share price has performed well over the past 12 months, rising by 22%.
The company's shares reached a multi-year low of 15 cents in March, and a 52-week high of 67 cents in September.
