SYDNEY, AUSTRALIA: ECS Botanics Holdings has entered into a five year agreement with Polish company Alivio Spolka ZO. for the supply of medicinal cannabis products, which will generate a minimum of $4.5m in revenue for the company.
Managing Director, Alex Keach said: “We are very excited to partner with Alivio Spolka. This agreement highlights the increasing demand for our Australian grown product and marks the scale up of our global export sales initiatives. We have a strong pipeline building in both local and international markets, which will translate to further revenue growth.”
Alivio Spolka is based in Warsaw, Poland. The group has an existing range of medicinal cannabis products, which are supplied through clinics and pharmacy networks across the country. Under the agreement and through ECS’s Murray Meds licence, the Company will supply Alivio Spolka with a minimum of $0.9m of GMP manufactured medicinal cannabis products per annum.
These products will be used to supplement the group’s existing medicinal cannabis CBD range currently being sold in Poland.
First supply is anticipated to commence later this year, once product registration has been completed. Both parties may terminate the agreement upon 10 days prior notice if either party breaches any provision of the agreement or is unable to establish or maintain industry quality standards, and fails to rectify within 30 days.
ECS may also terminate the agreement if Alivio Spolka fails to make any payment when due and has not remedied such non-payment within 10 business days following receipt of written notice. ECS can also immediately terminate the agreement upon written notice of an insolvency event. As previously advised (refer ASX announcement: 9 June 2021), following the first successful commercial harvest, ECS has commenced the installation of a further 2,100m2 protected cropping enclosures at its Victorian site.
The new grow facilities will be ready for cultivation in October 2021, allowing the Company to meet growing customer demand and anticipated future orders.
Executive Director, Nan-Maree Schoerie added: “This agreement highlights the value our B2B strategy creates for our customers, and we look forward to the ongoing supply of affordable, quality medicinal cannabis to our growing number of Australian customers, in addition to continuing to develop our export business.”