ECS Botanics has struck a binding offtake agreement to supply dried flower to UK-based medicinal cannabis distributor Rokshaw.
Under the three-year contract, ECS will supply a minimum 600kg of pharmaceutical-grade flower each year, a deal expected to generate A$9.3 million for ECS and starting during the current growing season.
Rokshaw is part of Canadian-listed Curaleaf International and distributes a range of flower and oils in the UK.
Describing the agreement as “another substantial milestone with a new international customer”, ECS managing director Nan-Maree Schoerie said the firm had executed offtake agreements worth $60m in the past 18 months
Seh added: “We are well positioned to meet the increasing demand and fulfill orders efficiently. This is attributed to the recent expansion of our cultivation areas and yield improvements from our R&D initiatives, both playing a key role in enabling us to significantly boost production.”
Rokshaw managing director Richard Hodgson said the partnership reaffirmed the company’s commitment towards widening access in the UK, “with competitively priced products with a variety of strain profiles and dosage forms”.
He added: “ECS stood-out as a producer that we really wanted to work with, so we are extremely excited that we have been able to make this happen, and we look forward to seeing how our partnership develops.”
Meanwhile, ECS told the ASX it has experienced strong customer demand for its GMP-certified THC pastilles (gummies) through client Entoura following their launch late last year.
It said the speedy allocation of the initial shipment demonstrated the high demand for additional dosage forms in Australia.
ECS Botanics was a three-time winner at the Cannabiz Awards 2023.