Peak Processing secures A$2.4 million to support Q4 production surge

Peak Processing Limited (ASX:PKP) has secured binding commitments to raise A$2.4 million through the issuance of unsecured loan notes.

The capital raise, managed by Powerhouse Ventures (ASX:PVL), is designed to provide the necessary working capital to fund a production ramp-up at the company’s Ontario facility.

Peak Processing expects to produce approximately 1.5 million THC-infused beverage units in the fourth quarter of FY26, representing a 50 per cent increase over the previous quarter.

The company intends to allocate A$1.5 million of the proceeds specifically to inventory building to meet confirmed purchase orders from several market-leading brands.

Additional funds will be directed toward capital expenditure with anticipated paybacks of less than 12 months and general corporate purposes.

Managing Director Barry Katzman stated that the funding ensures the company can execute on recent contract extensions and new brand launches, including partnerships with Reggae Royalty and Juana Sip.

This financial milestone follows an operational reset under new leadership, which saw Peak Processing record its first month of positive EBITDA in March 2026, generating approximately A$159,000 on revenue of A$1.2 million.

Upon the conversion of the notes at A$0.015 per share - which remains subject to shareholder approval - the company anticipates achieving a positive working capital position for the first time in recent reporting history.

The notes carry a 12-month maturity period and were issued at an 11.8 per cent discount to the company's last traded price.