ECS Botanics Holdings Ltd (ASX:ECS), through Murray Meds, has entered a three-year agreement with an undisclosed Australian cannabinoid company for the supply of medicinal cannabis products.
Under this latest agreement, Murray Meds is posied to supply medicinal cannabis dried flower, concentrate and final dose oils to the cannabinoid company.
Specifically, the latest agreement with the Australian-based customer will see Murray Meds supply the following:
- THC dried cannabis flower in jars
- Bulk dried cannabis flower
- THC API
- Medicinal cannabis oil in 30 & 50 ml bottles
While specific commercial terms around pricing and units remain confidential, the minimum spend across the life of the agreement is $750,000 with a forecast spend of approximately $500,000 in the first year.
The agreement follows another Murray Meds’ three-year supply agreement with The Armour Group, a London-based pharmaceuticals distribution company.
“This is the second supply contract Murray Meds has signed in recent weeks and validates that a low capex and operating medicinal cannabis facility can still meet pharmaceutical quality of the oil and premium priced dry flower market,” said ECS Botanics Managing Director Alex Keach.
Keach revealed that ECS Botanics has previously worked with the Australia-based customer, adding that the strengthening of this collaboration will help expand ECS sales network from the Company’s Victoria and Tasmania production hubs.
Last January, ECS Botanics fully acquired medical cannabis cultivator Murray Meds after signing a binding Term Sheet with Flowerday Holding Pty Ltd.
On February 12, Murray Meds signed a Memorandum of Understanding (MoU) with an Australian-based medicinal cannabis company to assess and develop Murray Meds’ production capability.
