ECS Botanics has struck a binding A$24 million offtake agreement with MediCann Health for the supply of its GMP medicinal cannabis dried flower.
ECS will supply two strains exclusively to the Perth-based firm, starting in January 2024, with more than four tonnes of product to be delivered over five years.
Both companies said they expected annual volumes stipulated under the agreement – which builds on an existing two-year contract – to be met.
ECS managing director Nan-Maree Schoerie said: “MediCann’s dedication to putting patients at the forefront of their business aligns perfectly with our own commitment to delivering top-tier medicinal cannabis.
“Our expertise in cultivating and manufacturing cannabis, combined with our shared focus on patient wellbeing, inspires us to continue to provide outstanding medicine to companies such as MediCann.”
The move comes after ECS signed two supply agreements with Entoura and Precision Pharmaceuticals worth almost $12m in June.
Schoerie added: “These partnerships highlight the strong local demand for our GMP-certified, pharmaceutical-grade cannabis and provide ECS with a solid foundation to continue to deliver profitable growth.”
MediCann founder and CEO Matt Shales said: “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.
“We look forward to continuing our mission to improve the quality of life of people in need of these products and to continue to build on our partnership with ECS Botanics for the long term.”
