It has been a great start to the week for the Althea Group Holdings Ltd (ASX: AGH) share price.
In afternoon trade, the cannabis company's shares are up almost 8% to 56 cents.
This latest gain means the Althea share price is now up over 27% since the start of the year.
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Why is the Althea share price racing higher today?
The catalyst for the rise in the Althea share price today has been the release of a sales announcement.
According to the release, the company's Canada-based subsidiary, Peak Processing Solutions, has received a binding purchase order from WeedMD.
The initial order, which is performed as part of a one-year commercial services agreement, is valued at approximately C$130,000. It is expected to be delivered to WeedMD in March.
The release explains that under the agreement, Peak will perform a variety of services for WeedMD. This includes the hydrocarbon extraction of fresh-frozen cannabis biomass used to produce live resin cannabis concentrate products for sale in the Canadian adult-use cannabis market.
Management commentary
Althea's CEO, Joshua Fegan, said: "We are pleased to have received this initial purchase order from WeedMD, a like-minded innovator in the Canadian adult-use cannabis market. The PO and associated commercial agreement provide further recognition from an industry leader that Peak has the capability to produce and deliver cannabis products of the highest quality. Peak continues to attract strong interest from companies across Canada and the United States looking to enter the Canadian recreational cannabis market."
This sentiment was echoed by WeedMD's Executive Chairman and CEO, George Scorsis.
He commented: "We are extremely excited to be working with the Peak team on this first of its kind product for our company and I have the utmost confidence in our execution-focused team of experts. Live resins are a premium offering that are in high demand in the Canadian market and I am confident we have a product that will exceed expectations."
Today's gain leaves the Althea share price trading within sight of its 52-week high of 67 cents.
