- ECS Botanics (ECS) subsidiary Murray Meds has signed a MOU with an unnamed Australian medical cannabis company for the potential cultivation and supply of cannabis
- The parties will meet periodically over the next year to assess the material production capabilities of Murray Meds and discuss the supply of cannabis material
- The quality, specification and pricing of the cannabis has not yet been specified
- During the 12-month term, the parties intend to execute further long-form agreements to replace the MOU
- ECS Botanics shares are down 2.82 per cent, trading at 6.9 cents
ECS Botanics (ECS) subsidiary Murray Meds has signed a binding memorandum of understanding (MOU) with the subsidiary of a large Australian medical cannabis company for the cultivation and supply of cannabis.
ECS Botanics entered a binding agreement to acquire 100 per cent of Murray Meds earlier this year. Murray Meds is fully licensed to cultivate and manufacture medicinal cannabis, dried flowers, oils and tinctures.
The Australian counterparty has not yet been named.
Under the binding MOU, Murray Meds and the counterparty have agreed to periodically meet during a 12-month term to assess the production capabilities of Murray Meds and the requirements of the new party. This will assist in developing a production plan and the commercial terms for the supply of cannabis material.
The quality, specification and pricing of the cannabis have not yet been specified in the MOU.
During the 12-month term, the parties intend to execute further long-form agreements to replace the MOU, which will include a production plan and quality contract. This will contain the final binding terms regarding pricing, quality standards and volumes of the cannabis material.
ECS Botanics shares are down 2.82 per cent, trading at 6.9 cents at 2:15 pm AEDT.