ECS Botanics jumps almost 5pc on $4.5 million Polish deal

ECS Botanics Holdings has secured a 5-year $4.5 million deal to supply Polish company Alivio Spolka with the GMP manufactured Medicinal Cannabis.

Shares in ECS Botanics Holdings (ASX:ECS) have jumped almost 5% today after the company announced it secured a five-year agreement with Polish company Alivio Spolka for the supply of $4.5 million worth of GMP manufactured medicinal cannabis.

Under the deal and through ECS’s Murray Meds licence, the company will supply Alivio Spolka with a minimum of $0.9m of GMP manufactured cannabis per annum with the ability to scale up sales volumes.

ECS is quickly becoming a market leader with its B2B strategy capturing market share, delivering numerous contracts and strong revenue growth.

ECS’ strategy and speed of execution are providing it with a leadership position within the industry, we expect they are on the path to jostle for top spot with the company holding numerous Office of Drug Control and TGA Manufacturing licences, the highest medicinal cannabis cultivation capacity in Australia and the lowest production cost.

ECS can continue to leverage its substantial production capacity and GMP pharmaceutical expertise to accelerate top-line revenue growth and market share in Australia and Europe.

Poland medicinal cannabis deal marks scale-up of exports

Managing director Alex Keach said the company was excited by the partnership with Alivio Spolka, which is based in Warsaw and has an existing range of medicinal cannabis products, which are supplied through clinics and pharmacy networks around the country.

“This agreement highlights the increasing demand for our Australian grown product and marks the scale-up of our global export sales initiatives,” Keach told Stockhead.

“We have a strong pipeline building in both local and international markets, which will translate to further revenue growth.”

Medicinal cannabis supply to Poland earmarked for later this year 

 ECS’s products will be used to supplement Alivio Spolka’s existing medicinal cannabis CBD range with first supply earmarked to start later this year, once product registration has been completed.

Executive director Nan-Maree Schoerie said the latest deal highlights the value of the company’s B2B strategy.

“We look forward to the ongoing supply of affordable, quality medicinal cannabis to our growing number of Australian customers, in addition to continuing to develop our export business,” Schoerie told Stockhead.

Expansion as demand for medicinal cannabis grows

It’s been a year of expansion for the vertically integrated medicinal cannabis and industrial hemp business. The company owns farms and medicinal cannabis facilities near Launceston in Tasmania and on the Murray River in Victoria for cultivation, processing and manufacturing its products.

Following the first successful commercial harvest ECS commenced the installation of a further 2,100m2 protected cropping enclosures at its Victorian site.  The new grow facilities are expected to be ready for cultivation in October 2021, allowing the ECS to meet growing customer demand and anticipated future orders.

ECS manufactures to EU GMP standards and has the necessary licences to cultivate and manufacture medicinal cannabis for the wholesale extract, final dose and premium dry flower market (for inhalation).

ECS’ core focus is scale and low-cost production, without compromising quality.

At time of writing the share price had risen 4.80% to 0.041.

This article was developed in collaboration with ECS Botanics Holdings (ASX:ECS) a Stockhead advertiser at the time of publishing.

 This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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