ECS Botanics has entered into a binding A$24 million offtake agreement with MediCann Health, covering the supply of GMP-certified medicinal cannabis dried flower.
Under the arrangement, ECS will deliver two strains exclusively to the Perth-based company beginning in January 2024, with total supply exceeding four tonnes across a five-year period.
The two companies said they anticipate meeting the annual volumes outlined in the agreement, which extends an existing two-year contract between the parties.
ECS managing director Nan-Maree Schoerie said: "MediCann's dedication to putting patients at the forefront of their business aligns perfectly with our own commitment to delivering top-tier medicinal cannabis.
"Our expertise in cultivating and manufacturing cannabis, combined with our shared focus on patient wellbeing, inspires us to continue to provide outstanding medicine to companies such as MediCann."
The announcement follows ECS signing two supply agreements with Entoura and Precision Pharmaceuticals worth almost $12m in June.
Schoerie added: "These partnerships highlight the strong local demand for our GMP-certified, pharmaceutical-grade cannabis and provide ECS with a solid foundation to continue to deliver profitable growth."
MediCann founder and CEO Matt Shales said: "It has been highly rewarding to work closely with ECS over the past number of years and we are delighted to strengthen our partnership even further as we secure an exclusive long-term supply agreement.
"We look forward to continuing our mission to improve the quality of life of people in need of these products and to continue to build on our partnership with ECS Botanics for the long term."
