ECS Botanics shares surged 20% on Tuesday morning after the company revealed it had signed two dried flower supply agreements totalling close to A$12 million.
The cannabis cultivator will provide Entoura with $10.2m worth of dried flower across a three-year term, while Precision Pharmaceuticals has committed to $1.7m of dried flower deliveries over the next 12 months.
Both companies are expected to receive their initial supply during the first quarter of FY24.
The announcement pushed ECS Botanics shares up 20% in morning trade, with the stock reaching $0.024c per share.
As part of the supply agreements, ECS will cultivate a minimum of three strains exclusively for Melbourne-based Entoura.
Sydney-based Precision Pharmaceuticals will similarly receive exclusive strains to add to its product range.
ECS said the deals "demonstrate the scaling benefits of recent capacity upgrades" which include yield improvements, more outdoor growing, and new protective cropping enclosures.
Managing director Nan-Maree Schoerie said: "It is rewarding to see the momentum across our entire business with sales, distribution and customer relationships performing strongly.
"ECS' focus is on building a cost-efficient, large-scale, B2B business that can supply a multitude of retailers with medicinal cannabis flowers and oils."
ECS last week announced it has increased production by more than 50% over the past 12 months, following the installation of six protective cropping enclosures at its Murray River facility.
The company is also conducting a trial inside one of the enclosures aimed at extending the growing season and boosting production capacity.
