Australia’s ECS Botanics Holdings Ltd (ASX: ECS) has secured a significant binding offtake agreement to supply medicinal cannabis dried flower over the next five years to Perth-based MediCann Health.
Under the agreement, ECS will supply $24 million of pharmaceutical-grade dried flower produced by two ECS-developed cannabis strains to MediCann Health starting in January next year.
Commenting on the deal, ECS Managing Director Nan-Maree Schoerie said:
“This agreement not only reinforces our dedication to meeting the growing demand for affordable, accessible, and effective medicinal cannabis products but also marks another milestone following our June 2023 agreements, totalling $11.9 million.”
Established in 2018 as an ASX-listed company with a Tasmanian based food and wellness business, ECS acquired Murray Meds in March 2021, which was licensed in 2020. The initial focus of Murray Meds was on extraction, but evolved into GMP flower production in addition to oils. A GMP license was secured for its cultivation and manufacturing facility located on a seven-acre site on the Murray River in northwestern Victoria in June 2021.
In 2022, ECS Botanics decided to divest other interests to focus on its Victorian operations. In July last year, the company found a buyer for its hemp food and wellness division, and offloaded its Tasmanian business and assets in October 2022.
The company has had an association with MediCann Health for some time, which will continue to be supplied medicinal cannabis dried flower under current arrangements until the new agreement kicks in.
“It has been highly rewarding to work closely with ECS over the past number of years and we are delighted to strengthen our partnership even further as we secure an exclusive long-term supply agreement with ECS Botanics for its high-quality Australian grown flowers,” said MediCann Founder and CEO, Matt Shale.
Founded in 2019, Medicann Health’s aim is improving the quality of life of people in need using science backed, reliable and affordable plant- based medicines.
“We are passionate about this plant and are continuously engaging in research to be able to keep improving our products by increasing the efficacy and having formulas that target more specific conditions,” states the company.
