Shares in ECS Botanics get a boost following the launch of innovative wellness products
Health & Biotech
Health & Biotech
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Investors responded positively to the announcement, sending ECS shares up by ~15pc into midday trade.
ECS Botanics (ASX:ECS) has taken a key step forward with its go-to market strategy, with the launch today of its an innovative range 30ml tincture terpene blends.
Production and packaging are now complete for the company’s suite of specially formulated CB1 and CB2 terpene blends, using cannabis sativa seed oil from Tasmania.
Terpenes are molecules with pharmacological properties that have formed the basis of essential oil treatments — now a multi-billion dollar global industry.
In addition, the blends formulated by ECS have been developed to help enhance the body’s cannabinoid receptors as part of its broader wellness offering.
Shares in ECS rose by almost 15 per cent following the announcement, to 4.1c.
While completing product development is one thing, ECS also flagged a distribution advantage in the domestic market via its partnership with the listed Cronos Australia (ASX:CAU).
The 12-month non-exclusive supply agreement gives CAU permission to sell ECS’ terpene blend range, either directly to customers or via its distribution partners.
ECS has also received “notification from a range of other partners and distributors” who intend to stock or distribute the new product range.
Distribution partners include Releaf Clinics, who signed a medicinal cannabis supply agreement with ECS in March.
The company also has agreements in place with three companies — Global by Nature, Rener Health Products and Complete Health Products – that will allow it to leverage a distribution footprint across NSW, Queensland and Western Australia.
ECS managing director Alex Keach said the company was excited to go to market with its latest product range after receiving “very strong” interest from distributors and end-users.
The product news follows on from another big announcement last month, when ECS confirmed it had lodged plans with regulators for a major expansion of its cultivation area to build on its position as Australia’s largest producer of low-cost cannabidiol (CBD) extract.
With its operations in Tasmania, the company is uniquely positioned to take advantage of the state’s standing as an agricultural hub serving major global industries – most notably the poppy sector.
Revenues are beginning to flow from the companies recently purchased cannabis cultivation and manufacturing facility in Tasmania, which the company set to service the shortage in dry flower for inhalation, while their first shipment of THC and CBD biomass was dispatched in April.
The terpene blend range will also be available via the company’s own website, as it builds out a market-leading range of wellness products in the domestic market.
This article was developed in collaboration with ECS Botanics, 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.