Althea Company Pty Ltd - Voluntary Administration

Althea Company Pty Ltd, a wholly-owned subsidiary of Althea Group Holdings (ASX:AGH), a licensed producer, supplier and exporter of pharmaceutical-grade medicinal cannabis, entered voluntary administration on 9 July, with Sule Arnautovic of Salea Advisory appointed voluntary administrator.

In late May, AGH announced that it would be selling certain assets of Althea Company to Tasmanian Botanics for $1 million, plus a revenue-sharing arrangement on residual inventory sales, to allow AGH to focus on the rapidly expanding global THC-infused beverage market. 

AGH’s board determined that a voluntary administration process should be used to close out the subsidiary, which reportedly faces unsecured claims of $3 million following payment of the sale proceeds to secured creditor Causeway, which still holds a $500,000 claim.