While some of us best associate Jamaica with their bobsled team, our more switched-on counterparts may better associate the nation with their high quality cannabis which will soon be manufactured for public consumption by Epsilon Healthcare (ASX: EPN) in Australia.
The future supply comes with Epsilon entering into a 2-year manufacturing agreement with Jamaican cannabis grower Cannim, which cultivates their product on a 500-acre farm on the island nation. Under the deal, Epsilon will import dried flowers to their Southport manufacturing facility in Queensland where they will then produce medicinal cannabis products under Cannim’s HummingBud brand.
“We’re pleased to announce this partnership with Cannim, who are leaders in the cannabis cultivation market,” said Epsilon Healthcare CEO, Jarrod White.
“Matching our high-volume EU GMP compliant Southport Facility with Cannim’s high volume GACP Jamaican medicinal cannabis places both companies in a strong position to deliver significant volumes of high-quality medicines for both the Australian and global export markets.
“The partnership contemplates all areas of the Epsilon value chain, from local import and handling of dried product expertise, to export, and assisting in the logistics and distribution of the final product. This is reflective of the significant progress and capability improvements at our Southport facility in the preceding 12 months.”
Although the signing of the 2-year manufacturing agreement is new, it follows earlier work done between Epsilon and Cannim which first received product samples last month. Having processed that raw material, the first batch of HummingBud is now available via prescription through Epilon’s clinical network – Tetra Health.
Access to the HummingBud brand is a nice win for Epsilon with Cannim having already built up the brand quite significantly through other supply agreements into Germany and the United Kingdom.
“Following on from our release of Jamaican flower into Germany, our manufacturing agreement with Epsilon has allowed us to bring our Jamaican cannabis flower to Australia,” said Cannim COO, Lachlan Cameron.
“Their high quality, GMP certified production facility will ensure that we provide the best possible expression of our product to patients in need throughout Australia and further afield”
For the six months ended 30 June 2021, Epsilon Healthcare reported $3.24 million in revenue. Although this was a marginal 0.6% decline on the previous corresponding period, the Company has been actively improving its margins which improved their net loss after tax for the period to $4.07m – a substantial improvement on the previous $5.66m loss.
EPN shares responded well to news of the Cannim agreement, reaching a high of $0.15 in morning trade, a rise of 20% on their previous $0.125 close.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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