The budding cannabis market in New Zealand continues to flourish as more Kiwis seek an alternative to standard pharmaceutical drugs.
Now, just because trends are shifting doesn’t mean it is easier for patients to gain access to cannabis medication. To open up the world of cannabis therapy, New Zealand’s largest cannabis wholesaler is creating a mainline to inject the nation with access to a wide range of therapeutic medicine and medical devices.
With a distribution network encompassing pharmacies and specialty clinics spanning the country, Nubu Pharmaceuticals (formerly MW Pharma Ltd) are onboarding as many overseas medicinal cannabis cultivators to expand their network to distribute products to every corner of the country.
Nubu landed its latest distribution deal with an Australian cannabis company, ECS Botanics (ASX: ECS), which manufactures and cultivates cannabis products in Victoria, Australia, for worldwide distribution.
ECS already secured a four-year contract worth A$1.75m with Nubu back in August 2021, but today have officially completed their first shipment to New Zealand following a successful application to register ECS marijuana strains, along with import and export permits in the country. In fact, this will be the first dried cannabis flower strain for inhalation granted for approval in New Zealand, which ECS anticipates will give them a significant competitive edge and a strong chance at dominating the virgin market.
“This shipment demonstrates ECS’ high-quality products, as New Zealand has one of the highest barriers for entry for imported medicinal cannabis. At ECS, we proudly grow our cannabis naturally in soil. This ensures our flowers contain the full spectrum of primary and secondary metabolites for maximum therapeutic benefit. I am confident that our product will be as well received by New Zealand patients, as it has been by our Australian and overseas patients,” said ECS Managing Director, Nan-Maree Schoerie.
As this is the first year of the four-year contract, the Company will supply a minimum order of $250,000 worth of product in 2022 and $500,000 minimum orders for the following three years.
Having led the market with its first successful registration of dried cannabis strains, ECS is well-positioned to maximise growth in this sprouting industry, securing long-term contracts to guarantee products out the door.
Upon releasing this news, ECS shares have popped more than 10% today to sit on $0.21 at the time of writing, but this follows a nearly two-year downtrend from $0.78 that has seen more than 70% of its value wiped.
During the previous quarter, ECS Botanics successfully completed a second shipment to Lyphe Group based in the United Kingdom. The Company has also been progressing markets globally as they’re in the works to pierce the Polish and German markets as they seek registration and approval for its products.
Trading Desk Assistant at Emerald Financial
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