Israel-based eSense-Lab expects its latest multi-year distribution deal to make it millions of dollars.

The company (ASX:ESE) revealed last week that up to 5 million bottles of its e-juice will be sold each year in the US and Canada by California-based VaporSpec.

“While at this point we cannot reveal pricing information due to contract confidentiality, the total net revenue for eSense during the term of the contract is in the whereabouts of several million dollars revenue,” chief Haim Cohen told Stockhead.

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.

Mr Cohen says eSense has previously supplied its material in bulk shipment for use as an additive, but this is the first time its e-juice will be sold in the North American “vaping” market.

“We are still expanding and are in contact with additional distributors, so we expect to increase our sales presence there,” he said.

E-liquids are used for vaporising or “vaping” and are promoted as a safer alternative to smoking.

In the December quarter last year, eSense inked a two-year deal to supply its ‘lemon haze’ liquid to UK-based E-Quits Group.

Stockhead reported earlier in February that the company hadn’t made any more sales to the UK e-cigarette maker after signing its two-deal contract.

But Mr Cohen says eSense is currently selling its product in the UK at a “level of several litres of e-juice per shipment”.

“We expect to generate significant revenue over the course of the term of the supply agreement,” he said.

eSense is in talks with other companies around the world to market its e-juice in additional markets such as edibles, cosmetics, food additives and nutraceuticals.

The company expects to “realise several transactions” that will positively contribute to revenue and EBITA, or earnings before interest tax and amortisation.