ECS Botanics Holdings Ltd (ASX:ECS) is a fast-growing Australia-based provider of medicinal cannabis and hemp-based wellness products. With a focus on medicinal cannabis, it operates a specialised business model, with regenerative and organic medicinal cannabis cultivation/manufacturing facilities in Tasmania and Victoria. ECS has its own hemp food/wellness brand, and cultivation and white-label manufacturing medicinal cannabis products.
ECS is currently focussed on building its ‘seed to medicine’ model by expanding its medicinal cannabis facilities. With medicinal cannabis receiving acceptance from regulators and consumers across the globe, this market will rise rapidly providing multi-billion dollar growth opportunities.
ECS takes a B2B approach in medicinal cannabis to capture greater volume and market share in Australia and overseas, while creating a local market as medicinal cannabis distributors shift to ECS for supply over Canadian imports. The Murray Meds acquisition has been a game changer and has already resulted in a substantial boost to ECS’s revenue in 2H FY21. Strategically, the deal enables ECS to fast-track its presence into the rapidly expanding premium dry flower
market and unlock many synergistic benefits. Besides the addition of scale and cost benefits, ECS can operate large-scale low-cost Good Agricultural and Collection Practices (GACP) for medicinal plant cultivation and processing in Tasmania and send product material to the Murray Meds, which has a Good Manufacturing Practice (GMP)-compliant facility for further manufacturing. ECS is well positioned to disrupt the domestic cannabis market and capture a significant share. Its low cost, adherence to UN convention, and high-quality cultivation, manufacturing and product
standards are already capturing significant interest overseas.
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