ECS Botanics’ recently acquired cannabis cultivator Murray Meds has signed a binding Memorandum of Understanding (MOU) with an unnamed Australian medical cannabis company.
Under the MOU, the two parties will meet periodically over 12 months “to assess the production capabilities of Murray Meds, and the requirements of the counterparty, so as to develop and agree a production plan and commercial terms for the supply of cannabis material”.
ECS said the MOU does not specify commercial terms of quantity, specification and pricing.
However, during the 12-month term, the parties intend to execute further long-form agreements to replace the MOU, which will include a production plan and quality contract and final binding terms regarding pricing, quality standards and volumes.
ECS signed a binding term sheet to acquire 100% of Murray Meds in January.