ECS Botanics has signed a one-year, rolling supply agreement with Australian cannabis distributor Canngea worth a minimum A$410,000 in revenue per annum.
Under the agreement and via its existing Murray Meds licence, ECS will supply Canngea with GMP-manufactured medicinal cannabis products including dry flower and oils. First dispatch is expected in October 2021.
ECS managing director Alex Keach said: “The deal is further validation of the growing market in Australia and ECS’ B2B business model.”
Canngea managing director Ryan Ballantyne said the agreement boosts the company’s local supply capabilities for its Australian and international clients.
He added: “Collaborations like this strengthen the ability of the Australian medicinal cannabis industry to service growing demand for safe, high-quality, and affordable products. We were drawn to this opportunity particularly because ECS shares our values and vision around sustainability throughout the supply-chain, which is something we are passionate about.”
Cann Group shareholders have given the go-ahead at an Extraordinary General Meeting to a Share Purchase Plan which aims to raise up to A$10m, in addition to the $10m placement announced in July.
The proceeds will be used to invest in cost-saving initiatives as Cann moves to large-scale production at its new manufacturing facility near Mildura, Victoria.
The company said in a statement to the ASX: “Funding will be used to expedite and strengthen Cann’s in-house extraction, laboratory and manufacturing capabilities, which are expected to de-risk Cann’s supply chain and lower cost of goods sold by reducing the company’s reliance on third-party manufacturers and service providers.”
Eligible shareholders can apply for a minimum $500 and a maximum $30,000 of new shares at an issue price of 27.5 cents each (the same price as those allocated to institutional investors in the placement).
Medlab Clinical has reported net revenue of A$4.4m for FY21, 54% up on FY20, predominantly driven by sales of nutraceutical products.
Net loss after tax was down by 8% to $12.4m, net assets were up by 32% to $14.9m, and the company has a cash balance of $13.4m.
Queensland-based medicinal cannabis start up Medibis has now raised A$1.8m in crowdfunding from 932 investors.
The company plans to launch a range of cannabinoid formulations via global partner BOL Pharma and eventually build a $180m manufacturing facility near Toowoomba.
Managing director Angus Chapel said the aim is to develop a unique cannabis strain and fund research projects and education papers to ensure its products can be prescribed by GPs.