- Medicinal cannabis company ECS Botanics (ECS) has entered into a term sheet agreement with Australian-Canadian pharmaceutical, MediPharm Labs
- The agreement will see ECS supply cannabis inputs to MediPharm’s wholly-owned subsidiary MediPharm Labs Australia
- In turn, MediPharm will supply ECS with harvesting and production equipment to aid its commercial cannabis extraction operations in Tasmania
- The three year supply agreement is due to commence November 2021 with price point reviews to take place on a half-yearly basis henceforth
- A company spokesperson noted the supply and equipment technology transfer agreement components are not mutually exclusive and are subject to further definitive documentation
- Overall, however, the arrangements are considered an exciting and mutually beneficial supply chain relationship for both parties
- Investors have responded favourably to the announcement, with ECS shares up 7.32 per cent trading at 4.4 cents each
Medicinal cannabis company ECS Botanics (ECS) has entered into a term sheet agreement with Australian-Canadian pharmaceutical, MediPharm Labs.
The binding term sheet agreement and technology transfer purchase agreements are between ECS and the Canadian Stock Exchange lister’s Australian subsidiary, Medipharm Labs Australia.
Under the binding term sheet agreement, ECS will supply cannabis inputs, such as flower and crude resin extract, to aid the creation of formulated cannabis products.
The equipment technology transfer purchase agreement component will see MediPharm Australia provide harvesting and extraction equipment and technologies for ECS’ commercial harvesting operations.
The three year supply agreement is due to commence November 2021 with price point reviews to take place on a half-yearly basis henceforth.
A company spokesperson noted the supply and equipment technology transfer agreements are not mutually exclusive and are subject to further definitive documentation.
Overall, however, the arrangements are considered an exciting and mutually beneficial supply chain relationship for both parties.
Investors have responded favourably to the announcement, with ECS shares up 7.32 per cent trading at 4.4 cents each at 7:59 AEDT.