ECS Botanics (ASX:ECS) has locked in a $9.3 million offtake agreement with UK-based Rokshaw for the supply of medicinal cannabis dried flower over 3 years.
Under the 3-year agreement, ECS will supply a minimum of 600kg of pharmaceutical-grade cannabis dried flower to Rokshaw each year starting from this year’s growing season.
The deal follows other recent offtake agreements signed by ECS with MediCann Health in October 2023 and Entoura and Precision Pharmaceuticals back in June, highlighting the ‘positive outcomes’ stemming from recent ECS capacity and production enhancements.
ECS’ recent expansion of its cultivation areas, increase in licensed production by the Australian Office of Drug Control, and latest research and development discoveries have all enabled the company to continue to win ‘substantial’ offtake contracts.
ECS Botanics Managing Director Nan-Maree Schoerie says the company has signed $60 million worth of agreements in 18 months.
“This new contract builds upon our UK business and our existing international customer base, showcasing the export demand of our competitively priced EU-GMP-certified, pharmaceutical-grade cannabis. We have executed offtake agreements worth $60 million in the past 18 months, reaffirming the quality and reliability of our products, positioning us as a trusted supplier in the global medicinal cannabis market.
We are well positioned to meet the increasing demand and fulfil orders efficiently.”
“We have executed offtake agreements worth $60 million in the past 18 months”
Meanwhile, Rockshaw Managing Director Richard Hodgson says: “We are delighted to announce our partnership with ECS Botanics to continue providing their high-quality EU-GMP product in the UK market and expand our total range available for private prescription.
This partnership with a premium producer of EU-GMP medical cannabis again shows our commitment towards widening access in the UK, with competitively priced products with a variety of strain profiles and dosage forms.
Our best-in-class distribution service ensures that specialist prescribers can prescribe with confidence to ensure a sustainable treatment plan for their patients. 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.”
ECS Botanics is an Australian medicinal cannabis cultivator and manufacturer based in northwest Victoria.
Rokshaw is part of a New York-headquartered and Canadian-listed Curaleaf International (TSX:CURA) — the biggest cannabis company in the world, according to ECS, and a distributor of a range of flowers and oils in the UK.
Write to Adam Drought at Mining.com.au
Images: ECS Botanics