Life science company eSense-Lab (ASX: ESE) will be launching its e-cigarette liquid, known as e-Juice, into US and Canadian markets after signing a commercial distribution agreement with California-based VaporSpec.
The non-exclusive deal will see VaporSpec distribute several of eSense-Lab’s e-Juice products throughout North America.
Under the deal, e-Juice will be supplied in 10ml bottles, with VaporSpec to distribute a minimum of 450,000 in the first year – advancing to 5 million bottles in the agreement’s third year.
“I am extremely pleased to announce to the market the distribution agreement eSense has signed with VaporSpec – a major player in the US’ west coast vaping market,” eSense-Lab chief executive officer Haim Cohen said.
E-cigarettes are believed a safer alternative to smoking.
eSense-Lab also has a supply agreement with UK-based E-Quits Group, with E-Quits purchasing eSense-Lab’s super lemon haze mix.
eSense-Lab extracts terpenes from plants including cannabis for medical purposes and consumer products.
According to the company, its terpene-based products have a variety of flavours, fragrances and medicinal effects.
In addition to e-cigarette liquids, terpenes are used in topical treatments, beverages, medicine, cosmetics and food.
eSense-Lab is currently working on cannabis-based e-Juice infused with terpenes and flavours, as well as pineapple express and mango kush terpene blends.
A number of the products are based on the company’s inventory of cannabis strains.
“We are performing additional testing programs with companies in the other markets as well, including the development of different products that will allow the company to grow in the food additive, food supplements, e-cigarette and other related markets,” Mr Cohen said.
Escrowed shares to be released
Earlier this month, eSense Lab reported about 24% of its equity is about to be released from escrow.
On 14 February, 44.4 million shares will come out of escrow as well as 5.6 million options and potentially 32.9 million shares in performance rights.
The performance rights will only be activated if conditions have been met including eSense-Lab’s share price, revenue targets and business performance.
This morning’s news about the e-Juice sent eSense-Lab’s share price rocketing, with the price up 50% to $0.042 by early afternoon trade.