This Aussie Weed Company Secures Two Contracts Worth $7.9M To Supply Medicinal Cannabis Dried Flower

ECS Botanics Holdings Ltd ECS has entered into two binding offtake agreements worth at least AU$11.9 million ($7.9 million) to supply medicinal cannabis dried flower over the next three years.

ECS will supply Good Manufacturing Practice manufactured, medicinal cannabis dried flower worth AU$10.2 million over three years to Melbourne-based medicinal cannabis company Entoura Pty Ltd, and GMP manufactured, medicinal cannabis dried flower worth AU$1.7 million over 12 months to Sydney-based Precision Pharmaceuticals Pty Ltd. This agreement is reviewed annually.

Under the offtake agreement ECS will supply a minimum of three strains of GMP medicinal cannabis dried flower exclusively to Entoura. Precision retails various medicinal cannabis products and conducts research and development. ECS will supply Precision exclusive strains of dried medicinal cannabis flower for inclusion in the Precision retail product range. First supply under both agreements will occur next quarter (Q1 FY24).

ECS managing director, Nan-Maree Schoerie stated: “It is rewarding to see the momentum across our entire business, with sales, distribution and customer relationships performing strongly. These latest two Australian offtake agreements, worth at least AU$11.9 million in sales, come soon after recent agreements worth AU$9.9 million to supply products in the German market.”

“ECS’ focus is on building a cost-efficient, large-scale, B2B business that can supply a multitude of retailers with medicinal cannabis flowers and oils. We view respected companies such as Entoura and Precision, who focus on improving patient access through affordable quality products and education, as ideal partners in supporting the growth of the medicinal cannabis industry in Australia.”

Photo: Benzinga edit with photos by geralt and lindsayfox on Pixabay