Althea Group Holdings (ASX:AGH) received binding commitments to raise AU$2 million through the issuance of 2 million unsecured loan notes at AU$1 each, according to a Tuesday filing with the Australian bourse.

Subject to shareholder approval, the notes can be converted to about 66.7 million shares at AU$0.03 each, the filing said.

The funds will support the expansion of the company's Peak Processing Solutions unit in Canada, including supply chain improvements and increased manufacturing capacity.

The company also plans to issue 25 million unlisted options with an exercise price of AU$0.04 and expiry of Feb. 28, 2027.