ECS Botanics (ASX:ECS) secures $9.9m cannabis supply agreement
- ECS Botanics (ECS) signs a $9.9 million supply agreement for medicinal cannabis products with German company Ilios Santé GmbH
- Under the contract, ECS will exclusively supply four medicinal cannabis strains to Ilios Sante, with the first supply anticipated once product registration is complete
- The products are anticipated to generate a minimum of $9.9 million in revenue for ECS over the deal’s three year term
- ECS told investors the German medicinal cannabis market is continuing to grow, with German legislators recently moving to legalise recreational use
- Shares in ECS Botanics last traded at 2.1 cents on January 3
ECS Botanics (ECS) has secured a $9.9 million supply agreement for medicinal cannabis products in Germany.
The company entered a binding agreement with German company Ilios Santé GmbH for the supply of medicinal cannabis.
Under the contract, ECS will exclusively supply four medicinal cannabis strains to Ilios Sante, with the first supply anticipated once product registration is complete.
The products are anticipated to generate a minimum of $9.9 million in revenue for ECS over the deal’s three-year term.
Ilios Sante is a licensed wholesaler with approval to import and distribute narcotics and other pharmaceutical products.
ECS Managing Director Nan-Maree Schoerie said Ilios Sante is “well entrenched” in the German pharmaceutical market, with links to a “significant” medicinal cannabis therapeutic platform.
“The contract followed Ilios Sante’s own due diligence in assessing ECS as its chosen partner, and it is clear they value what we offer and our strong pharmaceutical approach to Cannabis.
“In our experience customers generally exceed minimum order quantities and we are optimistic this agreement will deliver a similar outcome,” Ms Schoerie said.
The company told investors the German medicinal cannabis market is continuing to grow, with German legislators recently moving to legalise recreational use.
“Securing an agreement with a long term partner in Germany was an essential building block of ECS`s European market access strategy,” ÉCS Head of European Operations, Michael Clark said.
Originally published in The Market Herald
4 January 2023 08:20(AEDT)
