ECS Botanics has informed the ASX that its medicinal cannabis facility in north-western Victoria remains operational despite severe flooding caused by the Loddon River in the surrounding region.
The site, located on the Murray River, has no prior flood history, but the company had substantially reinforced its levee banks ahead of the event. Those levees have so far kept the facility dry, allowing cultivation operations and plant maintenance to continue uninterrupted.
Despite the facility itself remaining protected, widespread road closures and flooding in the area have prevented some staff from reaching the site, creating disruptions to supply chain logistics.
Construction of new protected cropping enclosures has also been set back by the flooding.
ECS acknowledged that further flooding in the region remains possible, but said its levees are expected to hold. The company added that it does not anticipate any material impact on revenues based on current conditions.
Managing director Nan-Maree Schoerie said: "We are pleased to have been able to protect the facility from flooding and hope to continue to do so.
"However, our thoughts are with the community and the many families who have lost their homes during this widespread flood event.
"From a business perspective, it is extremely frustrating, as this has distracted us from our expansion as we continue to experience very healthy demand for our products."
Schoerie also acknowledged the contribution of local community members who helped defend the facility against rising waters.
She told The Weekly Times: "I can't express my gratitude enough. They just mucked in and started laying plastic and putting the sandbags down. There's just no way we could have done it [without them]… I was completely blown away by the level of support."
