Australian medical cannabis company ECS Botanics Holdings Ltd has announced it has offloaded its Tasmanian business and assets.
ECS Botanics had its fingers in a number of cannabis pies – including hemp foods and wellness. But in June this year, the company delivered its game plan for focusing its operations entirely on medicinal cannabis.
It wasn’t long after – in July – the company found a buyer for its hemp food and wellness division; Ananda Foods. Also in July, ECS put its cannabis operations in Tasmania’s Northern Midlands on the market.
On Monday, the company said it had it had entered into a binding share purchase agreement (SPA) to sell its 100% owned subsidiary ECS Botanics Pty Ltd (TasCo). The purchase price is $3 million and a $300,000 deposit has been made.
The buyer is noted as Blue Buffalo Pty Ltd; assumed to mean BlueBuffalo Pty. Ltd. There’s very little public information about the company, which was first registered back in 2002. It’s not clear if there’s any connection with the USA-based pet nutrition and wellness operation, Blue Buffalo Company, Ltd; which was founded in 2003. The American company doesn’t appear to offer any hemp-derived products at this point.
—
Update: 27 October: We’ve been informed BlueBuffalo Pty. Ltd has no relationship to the natural pet food company Blue Buffalo or its parent company, General Mills.
—
ECS says settlement is due to occur on 31 October 2022 (or another date agreed by both parties), when ECS will be paid the balance of the purchase price.
Commenting on the transaction, Managing Director of ECS, Nan-Maree Schoerie said:
“The sale of TasCo completes the third and final step in the group’s restructure and streamlining announced to the market on the 14th of June this year. This allows us to focus on the expansion at our Victorian operations which is proceeding rapidly.”
Ms. Schoerie said the company was continuing to experience “very healthy demand” for its medicinal cannabis products.
During FY 22, ECS Botanics’ medicinal cannabis sales increased by 422% to $7.2m and its losses reduced by 74% to $1.1m. During the last financial year, the company tripled its premium dry flower capacity, with 2000m2 of additional protective cropping constructed. Export sales accounted for 10% of the company’s revenues.
