Medicinal cannabis and hemp company ECS Botanics Holdings (ASX: ECS) has announced the successful completion of its first shipment of dried cannabis flower to Lyphe Group in the United Kingdom.
The shipment marks the first international export of the company’s Australian grown product.
Lyphe Group is the largest distributor of medicinal cannabis in the UK and reportedly looks after more than 60% of the country’s medicinal cannabis patients. The company has built a patient access ecosystem that provides clinics, pharmacy and dispensing, import infrastructure and vital educational services to patients, doctors and other healthcare professionals nationwide.
ECS has received purchase orders from Lyphe exceeding $500,000 for dried cannabis flower to be delivered to the UK market over the coming months as product becomes available from the current harvest.
ECS said it is working closely with Lyphe and expects further orders over the 2022 calendar year.
Lyphe chief commercial officer Chris Ashton said his company is excited to receive further products on order and expand its partnership with ECS to support the demand from UK patients.
“The range and quality of products offered by ECS represents a significant improvement in the UK supply chain and I’m sure will be well received by all UK patients,” he said.
“We expect demand for our flower to grow significantly through the year,” ECS managing director Alex Keach added.
Strong market demand
ECS’ partnership with Lyphe Group follows other recently secured agreements with Sun Pharma and Cannvalate in Australia.
In its December quarterly, the company noted “multiple” pending agreements with potential customers both within Australia and overseas.
Mr Keach revealed that existing customers were ordering greater than the minimum value of their contracts, signalling strong market demand.
ECS’ positive outlook is also bolstered by the loosening of regulations in Germany, which bodes well for the remainder of Europe.