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- ECS Botanics’ (ECS) subsidiary secures a $4.9 million agreement to supply resin to Australian cannabis company, Cannvalate
- The three-year binding agreement will begin following the installation of ECS’ extraction equipment at its tolling partner, Sun Pharmaceuticals’ facility, and will automatically renew on a yearly basis
- The deal is expected to generate approximately $592,500 in revenue for ECS over the next 12 months
- Company shares are up 5 per cent, trading at 3.2 cents
ECS Botanics’ (ECS) subsidiary has secured a $4.9 million agreement to supply resin to Australian cannabis company, Cannvalate.
Cannvalate holds one of Australia’s largest networks of medicinal cannabis prescribing doctors, and acts on behalf of The Valens Company in Australia to manufacture the product through Epsilon Healthcare (EPN).
The agreement with Cannvalate is expected to generate approximately $592,500 in revenue for ECS over the next 12 months.
The three-year binding agreement will begin following the installation of ECS’ extraction equipment at its tolling partner, Sun Pharmaceuticals’ facility, and will automatically renew on a yearly basis unless terminated.
ECS recently partnered with Sun Pharma in a supply and tolling agreement to accelerate plans for the cultivation and extraction of competitively priced cannabis oils.
“This agreement further highlights ECS’ attractiveness as a supply chain partner to both global and local companies,” said Executive General Manager, Nan-Maree Schoerie.
“We are delighted that Cannvalate, and their partner Valens, have selected ECS as their resin supplier and look forward to a long and rewarding relationship.”
ECS Botanics said it expects the Therapeutic Goods Administration will enforce stricter quality standards on imported medicinal cannabis products as of March 2022. As such, the playing field will level for domestic manufacturers compared to importers, which will result in demand for Australian grown products increasing over the next year.
Company shares were up 5 per cent, trading at 3.2 cents at 11:58 am AEDT.
