ECS Botanics (ASX:ECS) signs cannabis supply agreement

• ECS Botanics Holdings’ (ECS) subsidiary Murray Meds has entered into a three-year cannabis supply agreement with an as-yet unnamed Australian cannabinoid company
• Under the agreement, ECS will the supply THC dried cannabis flower in jars, bulk dried cannabis flower, THC API and medicinal cannabis oil to the unnamed company
• The minimum spend across the life of the agreement is $750,000 with $500,000 expected in the first year
• ECS Botanics is down 6.06 per cent, trading at 6.2 cents

ECS Botanics Holdings’ (ECS) subsidiary Murray Meds has entered into a three-year cannabis supply agreement with an as-yet unnamed Australian cannabinoid company.

Murray Meds has a fully licensed medicinal cannabis cultivation facility with permits to produce 3500 kilograms of medicinal cannabis, as well as dried flower, oils and tinctures.

This agreement with the unnamed company is for the supply of THC dried cannabis flower in jars, bulk dried cannabis flower, THC API and medicinal cannabis oil in 30 and 50 millilitre bottles.

The minimum spend across three year agreement is $750,000 with a forecast spend of approximately $500,000 in the first year. However, in accordance with the terms of the agreement, the specific pricing and units remain confidential.

“This is the second supply contract Murray Meds has signed in recent weeks and validates that a low capex and operating medicinal cannabis facility can still meet pharmaceutical quality of the oil and premium priced dry flower market,” said ECS Botanics Managing Director Alex Keach.

“ECS has previously collaborated and worked closely with the customer. We look forward to furthering this relationship and, with the acquisition of Murray Meds, expanding the ECS sales network from our production hubs in Victoria and Tasmania.”

The agreement follows Murray Meds’ supply agreement with London-based pharmaceuticals distribution company The Armour Group for the sale and export of medicinal cannabis oils in the UK and Germany.

ECS Botanics is down 6.06 per cent this morning, trading at 6.2 cents at 9:20 am AEDT.