ECS Botanics has entered into a binding three-year supply agreement with German company Ilios Sante worth almost A$10m.
Under the agreement, ECS will exclusively supply a minimum of A$9.9m worth of GMP-manufactured medicinal cannabis products over three years. First supply is expected once product registration has been completed.
ECS head of European operations Michael Clark said signing an agreement with a long-term partner in Germany was an “essential building block” of the firm’s European Union market access strategy.
He added: “Ensuring that our German partner not only had the necessary narcotic licences, but also its own clinic network, and the ability to adapt to future changes in cannabis legislation were key elements in securing the agreement.
“This partnership enables ECS and Ilios Sante to grow an exciting and sustainable business together in Europe’s largest medicinal cannabis market.”
Based in Frankfurt, Ilios Sante is a fully licensed wholesaler focused on the procurement and distribution of medical products containing cannabinoids as an alternative medicine. It is part of the Bloomwell Group, which also includes medicinal cannabis platform Algea Care.
Managing director Nan-Maree Schoerie said: “Germany is Europe’s largest medicinal cannabis market, and we have worked hard to identify the right in-country partner for ECS.
“Ilios Sante is well entrenched in the German pharmaceutical market, with links to a significant medicinal cannabis therapeutic platform.
“The contract followed Ilios Sante’s own due diligence in assessing ECS as its chosen partner, and it is clear they value what we offer and our strong pharmaceutical approach to cannabis.
“In our experience customers generally exceed minimum order quantities and we are optimistic this agreement will deliver a similar outcome.”
Both parties may terminate the agreement with 10 days notice if either breaches any of its provisions or is unable to establish or maintain industry quality standards, and fails to rectify within 30 days.
ECS may also terminate if Ilios Sante fails to make payments when due or upon written notice of an insolvency event.
Shares closed at $0.025 (January 4, 2023), up from $0.021 at the start of trading.
