After securing regulatory approval for the export of their product, medicinal cannabis company ECS Botanics (ASX: ECS) could soon become one of the larger exporters to the lucrative European market, so much so they need to build a new processing facility to cope with the demand.
The surge in demand has seen ECS Botanics report $1.5 million (unaudited) of revenue for the Quarter ending 31 December 2021 which would represent a 65% increase on the September Quarter.
The demand has been for ECS’ dry flowers and cannabis oils in both domestic and international markets which have been catalysed by notable supply agreements signed with Sun Pharma and Cannvalate.
“The most recent climb in quarterly revenue is very pleasing and highlights another record for ECS. It builds on the Company’s consistent track record of consecutive growth delivered over the last 18 months,” said ECS Botanics Managing Director, Alex Keach.
“We remain very well positioned to further this trajectory, last year we signed a significant number contracts domestically and overseas and it is now pleasing to see them convert into revenue.”
“Our business model is proving to be exactly what the market desires as well as providing us with a larger addressable market than our competitors.”
The Company notes that there has been increased demand for Australian-grown cannabis products over the past few months with ECS fulfilling that demand from their cultivation sites in Victoria and Tasmania. This resulted in more than 20,000 units of cannabis oil being produced, well up on the 13,200 from the previous quarter.
With more than $400,000 of export orders currently being fulfilled, ECS Botanics sees major upside from their international operations. To accommodate this, the Company has new protected cropping enclosures in production with additional processing facilities being constructed in March.
ECS Botanics will release its full December Quarter results toward the end of the month.
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