ECS Botanics Holdings Ltd (ASX: ECS or Company) is pleased to announce it has signed a binding Term Sheet (“Term Sheet”) with Flowerday Holdings Pty Ltd (“Flowerday Holdings”) whereby ECS shall acquire:
- 100% of the issued capital in Murray Meds.
- 100% of the issued share capital in Flowerday Farms.
As part of the transaction, ECS has also agreed to purchase the Flowerday Land Property.
Murray Meds has a fully licensed medicinal cannabis cultivation and manufacturing facility located on the Murray River in North Western Victoria. The facility holds a Cultivation, Research and Manufacturing Licence from the Australian Office of Drug Control as well as permits to cultivate and produce 3,500 kilograms of medicinal cannabis. Murray Meds also holds a TGA Good Manufacturing Practice manufacture licence for dried flower, oils and tinctures.
In this growing season, Murray Meds has already successfully harvested and packed 350kg of medicinal cannabis dried flower, positioning it as one of the largest producers of medicinal cannabis in Australia today. The major full season harvest is scheduled to commence in April and continue through to late May.
ECS Managing Director, Alex Keach commented: “I am delighted with this transaction and the opportunity and value it presents for ECS and its key stakeholders. MM & ECS share a view on industry methods and a vision for the future. As a combined group we are positioning to become the largest and most geographically diversified cannabis producer in Australia. Murray Meds has harvested its maiden THC crop and currently has another crop growing. This deal allows ECS to deliver earlier and more substantial revenue, while adding value to cannabis as communicated in our December announcement to purchase equipment for the extraction of cannabis resin. The deal sets us up nicely to become a globally recognised large scale, low-cost cultivator and manufacturer of medicinal cannabis. On completion of the transaction we look forward to welcoming Murray Meds founder and Managing Director Nan-Maree Schoerie to the board and executive team,and we expect her diverse skill set and work ethic will benefit the group greatly.”
Murray Meds Managing Director Nan-Maree Schoerie commented: “The opportunities that this deal creates for Murray Meds, its customers and employees is tremendously exciting. Both organisations are very grounded in their approach to delivering affordable medicinal cannabis as naturally and sustainably as we can, with shared values and an inherent drive to deliver for patients and shareholders.”