- ECS Botanics (ECS) enters a five-year agreement with Polish company Alivio Spolka to supply medicinal cannabis products
- Under the agreement, ECS will supply Alivio Spolka with a minimum $900,000 worth of medicinal cannabis products per year
- Overall, the agreement will generate $4.5 million in revenue for ECS over the five-year period
- First supply is expected to begin later this year once product registration has been completed
- Shares in ECS are steady on the market and are trading at 4.1 cents
ECS Botanics (ECS) has entered a five-year agreement with Polish company Alivio Spolka ZO.O to supply medicinal cannabis products.
Based in Warsaw, Alivio Spolka supplies a range of medicinal cannabis products through clinical and pharmacy networks across the country.
Under the agreement, ECS will supply Alivio Spolka with a minimum $900,000 worth of medicinal cannabis products per year.
Overall, the agreement will generate $4.5 million in revenue for ECS over the five-year period with the ability to scale up sales volumes.
These products will be used to supplement Alivio Spolka’s existing medicinal cannabis range currently being sold across Poland.
First supply is expected to begin later this year once product registration has been completed.
Either party can terminate the agreement if a company breaches the agreement or is unable to establish or maintain quality standards and fails to fix in 30 days.
ECS may also terminate the agreement if Alivio Spolka fails to make a payment when its due and has not rectified it within 10 business days.
Managing Director Alex Keach said this partnership highlighted the demand for its Australian-grown products.
“We are very excited to partner with Alivio Spolka. This agreement highlights the increasing demand for our Australian grown product and marks the scale up of our global export sales initiative,” Mr Keach commented.
“We have a strong pipeline building in both local and international markets, which will translate to further revenue growth.”
Shares in ECS were steady on the market to trade at 4.1 cents at 1:21 pm AEST.