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- ECS Botanics (ECS) secures supply agreement with Australian cannabis company Canngea
- The one-year rolling agreement is for the supply of medicinal cannabis products and is tipped to bring in revenue of $410,000 per year for ECS
- The first dispatch of medical cannabis is expected in October and will include dry flowers and oils
- ECS says the deal validates the growing market in Australia as well as the company’s business model
- Shares is trading 5.9 per cent higher at 3.6 cents at 12:14pm AEST
ECS Botanics (ECS) has secured a supply agreement with Australian cannabis company Canngea.
ECS is a medicinal cannabis and industrial hemp business with farms and facilities in Tasmania and Victoria for cultivation, processing and manufacturing needs.
Canngea was established in 2017 and focuses on distributing a range of solutions to both international and domestic markets.
The one-year rolling agreement is for the supply of medicinal cannabis products and is tipped to bring in revenue of $410,000 per year for ECS.
The first dispatch of medical cannabis is expected in October and will include dry flowers and oils.
Both parties are able to terminate the agreement following a material breach which can’t be remedied within 20 business days, or either company enters a state of insolvency or liquidation.
ECS said the deal validates the growing market in Australia as well as the company’s business model.
Commenting on the agreement, Canngea’s Managing Director Ryan Ballantyne said working with ECS is key to enhancing local supply capabilities for its existing clients.
“Collaborations like this strengthen the ability of the Australian medicinal
cannabis industry to service growing demand for safe, high-quality, and affordable products.”
ECS is encouraged by market demand for medical cannabis products and said it continues to build a strong sales pipeline with the aim of significantly increasing the scale of cannabis production.
Additionally, the company said other contracts are in the final stages and it will update the market accordingly.
Shares were trading 5.9 per cent higher at 3.6 cents at 12:14pm AEST.
