Peak executes binding USD$3.42m product development agreement and exclusive 5-year supply and manufacturing agreement with subsidiary of the Boston Beer Company

Investment Highlights:

• AGH subsidiary Peak Processing Solutions, has entered into binding agreements with BBCCC, Inc., a subsidiary of The Boston Beer Company (‘BBC’), to launch a new range of non-alcoholic cannabis-infused beverages in Canada
• Under the product development agreement, Peak will research and develop various product formulations and recipes for the new line of BBC cannabis products
• BBC will provide Peak with funding of up to USD$2m for capital improvements associated with the development project. In addition, Peak will receive a minimum of USD$285,000 for each year of the Term of the agreement (totalling USD$1.42m)
• Under the supply and manufacturing agreement, Peak is the exclusive manufacturer of all cannabis beverages produced or sold in Canada under BBC branding, for the term of the agreement. WeedMD Rx Inc., a subsidiary of Entourage Health Corp. (‘Entourage’), will supply cannabis input materials required for production
• Peak has secured a right of first refusal to act as BBC’s exclusive provider to commercialise any of its intellectual property in connection with the development or manufacture of cannabis products outside of Canada, including but not limited to the USA

For full ASX announcement – read here