The Althea Group Holdings Ltd (ASX: AGH) share price is charging higher on Thursday.
In morning trade the cannabis company’s shares are up 7% to 62 cents.
Why is the Althea share price charging higher?
Investors have been buying Althea shares this morning following the release of its second announcement in as many days.
On Wednesday the company revealed that it has completed its first shipment of medicinal cannabis products to Germany. That initial shipment of 2,000 units was valued at approximately $1 million.
It seems Althea has been keeping the delivery drivers busy this week and has now completed its first shipment of products to UK-based medicinal cannabis distributor Grow Pharma.
Althea has a supply agreement with Grow Pharma that allows it to distribute Althea products in the UK. This is in parallel to the company’s own sales channel.
The company also revealed that following initial success with products supplied to Grow Pharma from its UK inventory, it has expanded its agreement with Grow Pharma to include two further jurisdictions – the Isle of Man and Guernsey. Though, with a combined population of ~150,000, this isn’t a material market.
“At the forefront of this next frontier”
Althea’s CEO, Joshua Fegan, commented: “We are very pleased to have completed our initial shipment of products to Grow Pharma in the UK. Whilst the Althea brand has been in the UK for some time now and is experiencing early success, we are very proud to work with local distributors like Grow Pharma to help accelerate industry growth and ultimately service more patients.”
“Europe is fast becoming a global hub for medicinal cannabis, and is leading the world in patient access, regulatory affairs, and product sales. With operations in the UK and Germany, Althea is at the forefront of this next frontier,” he added.
Grow Pharma’s CEO, Pierre van Weperen, spoke positively about the agreement.
He said: “Grow Pharma is a leading distributor of medical cannabis in the UK and is working with the world’s best producers of cannabis-based medicines to bring their products to exciting new markets such as the UK, Isle of Man, Guernsey and Ireland.”
“The Althea manufacturing team have been consummate professionals throughout the quality and regulatory process required to import their products into the UK and we look forward to servicing patients with their high-quality and affordable medicines,” van Weperen added.
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