ASX-listed ECS Botanics has signed a binding equipment technology transfer and medicinal cannabis supply term sheet with MediPharm Labs Australia.
Under the supply agreement, MediPharm Labs agrees to buy cannabis inputs (flower or crude resin extract) from ECS to support the production of formulated finished products for future distribution.
The supply agreement begins on November 1, 2021 for three years, with prices mutually agreed and reviewed every six months.
ECS managing director Alex Keach said: “This is both an exciting and pivotal advancement for our company and we look forward to working closely with the team at MediPharm Labs.”
MediPharm Labs Australia CEO Warren Everitt added: “We are pleased to be able to add ECS to our strong global supply chain as we expand our footholds in new and emerging medical cannabis jurisdictions.”
ECS has also entered into an equipment technology transfer purchase agreement with MediPharm Labs Australia to support the company’s maiden medicinal cannabis harvest and large-scale production at its site in Northern Tasmania.