Benzinga | Sep 1, 2021 08:04AM EDT

Peak And Boston Beer Company Late Yesterday Announced Partnership To Develop, Produce, And Distribute Cannabis-Infused Beverages In Canada

* Peak Processing Solutions (Peak), subsidiary of Althea Group Holdings (ASX: AGH) (Althea) has entered into agreements with BBCCC, Inc., The Boston Beer Company (NYSE:SAM) ('BBC'), and WeedMD Rx Inc., a subsidiary of Entourage Health Corp. ('Entourage')

* Under the product development agreement, Peak will provide research and development services including laboratory support and the testing of various product formulations and recipes, for the new line of BBC 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 5 year 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

* Entourage will be responsible for distribution and sales of the cannabis-infused beverages in Canada