eSense shares shoot up 60pc on hefty North American e-Juice supply deal
Health & Biotech
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Israel-based eSense-Lab will sell up to 5 million bottles of e-Juice each year in North America under a new multi-year distribution deal.
The company’s (ASX:ESE) e-Juice will be sold in the US and Canada by California-based VaporSpec.
The quantum of the deal appeared to impress investors, with shares rocketing 60.7 per cent to an intra-day peak of 4.5c on Thursday.
Not long after market open, more than 8 million shares worth $308,998 had changed hands in 144 trades.
eSense makes synthetic terpenes, fragrant oils found in plants that carry flavour and aroma.
They carry the pungent odour of cannabis and offer some medicinal properties — but they don’t contain THC, the compound that gets you stoned, or cannabidiol (CBD), another restricted element in cannabis.
E-liquids are used for vaporising or “vaping” and are promoted as a safer alternative to smoking.
Under the deal with VaporSpec, eSense will supply at least 450,000 10ml bottles each year in the first two years, and by the third year that will increase to 5 million bottles annually.
eSense says the agreement automatically renews every three years.
In the December quarter last year, the company inked a two-year deal to supply its ‘lemon haze’ liquid to UK-based E-Quits Group.
The deal doesn’t include a minimum order and E-Quits is yet to provide eSense a schedule of orders.
Chief Haim Cohen told investors eSense is also undertaking additional testing programs that include the development of products in the food additive, food supplements, e-cigarette and other related markets.
Stockhead is seeking comment.