Epsilon signs long-term manufacturing deal for Cannim’s Jamaican cannabis products
Health & Biotech
Health & Biotech
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Epsilon has signed another major deal as its world-leading GMP manufacturing facility in Southport continues to attract the attention of medicinal cannabis powerhouses.
Global cannabis company Cannim has signed a two-year deal with Epsilon Healthcare (ASX:EPN) to be its Australian GMP manufacturing partner.
Epsilon has the largest GMP cannabis manufacturing facility in the southern hemisphere at Southport in Queensland, which will produce medicinal cannabis products from Cannim’s raw material at scale for supply into the Australian market as well as for global export.
As a global cannabis company primarily cultivating in Jamaica on a 500-acre farm under Good Agricultural and Collection Practice (GACP), Cannim has significant supply agreements for flower and oils into Germany, the United Kingdom and Australia.
Over the next two years Epsilon’s manufacturing arm, THC Pharma, will receive bulk imports of dried flower for the packaging and release of Australian GMP dried flower.
THC Pharma will also work on contract manufacturing opportunities for global third parties using Cannim’s cannabis material as an Active Pharmaceutical Ingredient (API), including supplying to parties referred to the company by Cannim.
Following receipt of Cannim’s Jamaican grown cannabis material in September, Epsilon has packaged, tested, and released for supply dried flower products under Cannim’s HummingBud brand.
These products are available for prescription now, including being prescribed by Tetra Health – Epsilon’s wholly owned clinic network.
To date, Epsilon has received three imports of Cannim’s cannabis starting material, with further imports on track for the balance of 2021 to be released as final product during the balance of Q4 2021 and into 2022.
The company expects to continue seeing ongoing purchase orders from Cannim and its partners over the course of the collaboration with Cannim.
Cannim chief operating officer Lachlan Cameron said he was excited to be partnering with Epsilon to bring their product to Australia.
“Following on from our release of Jamaican flower into Germany, our manufacturing agreement with Epsilon has allowed us to bring our Jamaican cannabis flower to Australia,” he said.
“Their high quality, GMP certified production facility will ensure that we provide the best possible expression of our product to patients in need throughout Australia and further afield.”
Epsilon CEO Jarrod White said Cannim was a leader in the cannabis cultivation market and demonstrated the significant capability of its Southport facility.
“Matching our high-volume EU GMP compliant Southport Facility with Cannim’s high volume GACP Jamaican medicinal cannabis places both companies in a strong position to deliver significant volumes of high-quality medicines for both the Australian and global export markets,” he said.
“The partnership contemplates all areas of the Epsilon value chain, from local import and handling of dried product expertise to export and assisting in the logistics and distribution of the final product.
“This is reflective of the significant progress and capability improvements at our Southport facility in the preceding 12 months.”
Epsilon’s Southport facility is continuing to gain the attention of key medicinal cannabis producers globally. In September Epsilon announced an exclusive partnership with Canadian The Valens Company.
Under the deal, Valens will fund all operational and capital expenditure of the Southport facility, in return for preferential access for up to 85% of the facility’s operational capacity over the next five years.
This article was developed in collaboration with Epsilon, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.