eSense-Lab locks in commercial agreement with UK group to supply cannabis-derived products
E-Quits Group has entered a supply agreement to purchase eSense’s Super Lemon Haze Mix for integration into a variety of products to be marketed in the UK, including terpenes for the food additive market.
Life science company eSense-Lab (ASX: ESE) has entered into a commercial agreement to supply its cannabis-based Super Lemon Haze Mix to E-Quits Group, trading as Lonjas UK, for integration into a range of products sold in the United Kingdom.
The two-year agreement – which includes the supply of synthetic terpenes at a fixed price per litre and no minimum order requirements – follows a six-month trial of Super Lemon Haze Mix in the UK food additives sector as an alternative to cannabis-infused edibles, which are considered legally-problematic in many countries.
Super Lemon Haze Mix is a sativa-dominant hybrid, blended from cannabis strains of lemon skunk and super silver haze, and is used to treat depression, fatigue, anxiety, nausea, stress, headaches and chronic pain.
E-Quits will provide a schedule of proposed orders for the product to eSense-Lab in the coming months.
Cannabis-infused edibles market
The global market for cannabis-infused edible products is expected to register a compound annual growth rate of more than 25% between now and 2022, according to a new report by research and advisory company Technavio.
Driving the growth is the social acceptance of cannabis, which has to date found acceptance in the US, Canada, Spain, Germany, Uruguay, Australia, Columbia, Chile, and Israel with more countries expected to legalise its use across various domains.
“The incorporation of new techniques in cannabis cultivation has resulted in the higher growth rate of the global legal cannabis market,” said a Technavio spokesperson.
“The use of these advanced techniques has led to improved quality of the marijuana-derived CBD-oil products, which augurs well for the growth of the market.”
E-liquids progress
Meanwhile, eSense-Lab continues to explore the use of its terpene products in the global e-liquids market.
E-liquids are the fluids which fuel electronic cigarettes, providing the nicotine solution and flavouring to mimic the ingredients of traditional cigarettes.
According to recent market research, approximately 3 million Britons are using e-cigarettes in a market predicted to surpass $8 billion by 2021.
In the UK, 12 million adults smoke cigarettes and 2.6 million use vaping products.
Of those, 700,000 are ex-smokers and 1.3 million are using tobacco and e-cigarettes.
In January, eSense-Lab secured a distribution agreement to take its plant-based terpene strains to markets in the United Arab Emirates.
At midday, shares in eSense-Lab were trading 34.92% higher at $0.085.