ECS Botanics (ASX:ECS) secures $11.9m to supply medicinal cannabis dried flower in Australia
- ECS Botanics (ECS) enters two offtake agreements worth more than $11.9 million to supply medical cannabis dried flower in Australia
- The company will supply Melbourne-based Entoura with Good Manufacturing Practice dried flower, worth $10.2 million over three years
- ECS also signed an agreement with Sydney-based Precision Pharmaceuticals worth $1.7 million
- The first supply will occur in Q1 FY24
- Shares soared 25 per cent to 2.5 cents at 11:15 am AEST
ECS Botanics (ECS) has entered two offtake agreements worth a combined more than $11.9 million to supply medicinal cannabis dried flower in Australia.
The company announced it will supply Melbourne-based Entoura with Good Manufacturing Practice (GMP) medicinal cannabis dried flower, worth $10.2 million over three years.
Entoura supplies and develops high-quality medicinal cannabis products, but also supports research into medicinal cannabis.
Under the agreement, ECS will supply a minimum of three strains of the flower which are exclusive to Entoura.
ECS also penned an agreement with Sydney-based Precision Pharmaceuticals worth $1.7 million.
Precision will also receive the GMP-manufactured medicinal cannabis dried flower, however, this contract only lasts for 12 months with the option to review annually.
The deal also includes ECS supplying Precision with its own exclusive retail cannabis product range.
“ECS’ focus is on building a cost-efficient, large-scale, B2B business that can supply a multitude of retailers with medicinal cannabis flowers and oils,” ECS Managing Director Nan-Maree Schoerie said.
“We view respected companies such as Entoura and Precision, who focus on improving patient access through affordable quality products and education, as ideal partners in supporting the growth of the medicinal cannabis industry in Australia.”
The first supply will take place in the first quarter of FY24.
ECS soared 25 per cent to 2.5 cents at 11:15 am AEST.
Originally published by The Market Herald
26 June 2023 11:15(AEDT)
