ECS Botanics’ subsidiary Murray Meds has signed a Memorandum of Understanding (MoU) with a large Australian based medicinal cannabis company under which the two parties will, during a 12-month term, meet periodically to assess the material production capabilities of Murray Meds and to develop and agree on a production plan and commercial terms for the supply of cannabis material.
ECS Botanics, which did not disclose the name of the counterparty, said the MoU does not specify the commercial terms of quantity, specification and pricing of the cannabis material to be supplied by Murray Meds.
It said the two parties intend to execute further long-term agreements during the 12-month term to replace the MoU, which will include a production plan and quality contract, as well as the final binding terms in respect of the pricing, quality standards and volumes of the cannabis material.
Murray Meds is an advanced cannabis cultivator based in northwestern Victoria. The company owns a fully licensed medicinal cannabis cultivation and manufacturing facility which holds a cultivation, research and manufacturing licence from the Australian Office of Drug Control and permits to cultivate and produce 3,500 kilograms of medicinal cannabis.
Murray Meds, which recently inked a three-year supply agreement with London-based pharmaceuticals distribution company The Armour Group (TAG) for the sale and export of medicinal cannabis oils, also holds a TGA Good Manufacturing Practice manufacturing licence for dried flower and tinctures.