- ECS Botanics’ (ECS) soon-to-be subsidiary Murray Meds has signed a three-year supply agreement with London-based pharmaceuticals distribution company The Armour Group (TAG), for the sale and export of medicinal cannabis oils
- Last month, ECS Botanics announced it would acquire Victoria-based advanced cannabis cultivator Murray Meds
- The Murray Meds products will be used both in clinical trials in the UK and, following product registration in Germany, will be distributed through channels under The Armour Group brand
- The contract between Murray Meds and TAG contains minimum order volumes, which, if met, will contribute around $500,000 in revenue
- The first shipment of product is expected to occur in Q2 CY2021
- ECS Botanics is down 5.56 per cent, trading at 6.8 cents
ECS Botanics’ (ECS) soon-to-be subsidiary Murray Meds has signed a supply agreement with London-based pharmaceuticals distribution company The Armour Group (TAG).
The binding three-year agreement is for the sale, export and distribution of medicinal cannabis oils.
Last month, ECS Botanics announced it would acquire Victoria-based advanced cannabis cultivator Murray Meds. The transaction is proceeding as planned and is subject to shareholder approval.
Murray Meds owns a fully licensed medicinal cannabis cultivation and manufacturing facility and holds permits to cultivate and produce 3500 kilograms of medicinal cannabis.
In addition to initially supplying the medicinal cannabis oil for The Armour Group clinical trials, TAG will complete its product registration process in Germany, where it intends to distribute its brand of cannabis oils through established channels.
The contract between Murray Meds and TAG contains minimum order volumes, which, if met, will contribute around $500,000 in revenue. Murray management is anticipating order volumes to exceed that minimum in the first 12 months and continue to increase each year.
The first shipment of product is expected to occur in the second quarter of the 2021 calendar year.
“Fewer Australian companies are cultivating their own supply for export into Europe, we believe this illustrates the strong supply and manufacturing foundations ECS is building which supports our ability to supply high quality EU GMP compliant final dose medicine at low cost,” said ECS Botanics Managing Director Alex Keach.
“Initial orders are planned for use in clinical trials in the UK with supply to German pharmacies to follow once the products are registered. TAG has a strong ecommerce platform which it will leverage to distribute the products initially in Germany, followed by the UK and other European countries.”
ECS Botanics is trading down 5.56 per cent, trading at 6.8 cents at 9:35 am AEDT.