The Australasian lawyer reports……Two firms have acted in Australia as an ASX-listed medicinal cannabis company makes and acquisition in Canada.
DLA,Diper acted as Australian and Canadian counsel to Althea, which has agreed to acquire Peak Processing Solutions, its first foray into extraction and manufacturing of cannabis-infused products. The firm also advised on Althea’s associated $30m capital raising, though exact financial details of the acquisition itself were not disclosed.
Russell Kennedy acted for the founders of Peak Processing as Australian counsel. The firm said it received instructions from Torkin Manes, the Canadian counsel for Peak Processing, through Ally Law Alliance.
DLA Piper fielded a cross-border team to act on the deal. The team was headed by Melbourne-based corporate and projects partner Chris Mitchell, who recently joined the firm. He was supported in Australia by senior associates Dylan Burke and Simone Lim, and solicitors Chanel Mercurio and Tara Alexander.
In Canada, the DLA Piper team included corporate partner Robert Fonn, finance partner Ilia Danef, tax partner Kevin Fritz, counsel Nicole Kapos and associate Christopher Pejovic.
Mitchell said that the deal allows Althea to expand its current business portfolio into the Canadian recreational market. To ensure the deal succeeded, DLA Piper tapped its experts in equity capital markets, M&A, regulatory, and the North American cannabis industry, he said.
The Russell Kennedy team was led by special counsel Rory Maguire and principal Andrew Parlour. They were assisted by associate Stephanie Quatela.
Maguire said that the deal is particularly significant given new regulations covering cannabis in Canada. Earlier this month, Health Canada started accepting applications for companies seeking to produce cannabis-derived products, including edibles, beverages, and vaping goods.
Althea, which operates in Australia and the UK, plans to expand in emerging markets in Europe and Asia. It listed last year on the ASX,counselled by Norton Rose Fulbright.