ECS Botanics Secures a $24 Million Offtake Agreement with MediCann Health for Supply of Medicinal Cannabis

ECS Botanics Holdings Ltd (ASX: ECS) (“ECS” or the “Company”) is pleased to advise that it hassecured a binding offtake agreement (“Medicann Offtake Agreement”) to supply medicinal cannabisdried flower over the next five years to MediCann Health. Under the Medicann Offtake Agreement,ECS will supply $24 million of pharmaceutical-grade cannabis dried flower to Perth-based medicinalcannabis company MediCann Health Pty Ltd (“MediCann”) beginning in January 2024. Both ECS andMedicann expect the volumes ordered under the Offtake Agreement to exceed the minimum annualvolumes.

The new Medicann Offtake Agreement follows ECS Botanics securing two binding offtakeagreements in June 2023 (see ASX announcements dated 26 June 2023), underscoring theCompany’s strong presence in the B2B sector and highlighting the positive outcomes stemming fromits recent capacity and production enhancements. New protective cropping enclosures andproduction enhancements have been aimed at bolstering crop yields across additional outdoor fieldsand extending growing seasons through improvements to protective cropping enclosures.

MediCann is a leading medicinal cannabis healthcare company that provides patients with access tolocal specialist doctors and pharmacists who have experience prescribing cannabis-basedmedication. Under the offtake agreement, ECS will continue to exclusively supply two strains of GMPmedicinal cannabis dried flower to MediCann.

Commenting on the agreement, ECS Managing Director, Nan-Maree Schoerie said:

“We are excited to announce the expansion of our partnership with MediCann through this newlyextended, long-term supply agreement. MediCann’s dedication to putting patients at the forefront of theirbusiness aligns perfectly with our own commitment to delivering top-tier medicinal cannabis. Ourexpertise in cultivating and manufacturing cannabis, combined with our shared focus on patient well-being, inspires us to continue to provide outstanding medicine to companies such as MediCann. Thisagreement not only reinforces our dedication to meeting the growing demand for affordable, accessible, and effective medicinal cannabis products but also marks another milestone following our June 2023agreements, totalling $11.9 million. These partnerships highlight the strong local demand for our GMPcertified, pharmaceutical-grade cannabis and provide ECS with a solid foundation to continue to deliverprofitable growth.”

MediCann Founder and CEO, Matt Shales said:

“It has been highly rewarding to work closely with ECS over the past number of years and we aredelighted to strengthen our partnership even further as we secure an exclusive long-term supplyagreement with ECS Botanics for its high-quality Australian grown flowers. We look forward tocontinuing our mission to improve the quality of life of people in need of these products and to continueto build on our partnership with ECS Botanics for the long term.”

Key terms of the Medicann Offtake Agreement

The Medicann Offtake Agreement commences on 1 January 2024, until which time Medicann Healthwill continue to be supplied medicinal cannabis dried flower under the current agreement. The OfftakeAgreement stipulates annual volumes of each ECS developed strain that will be supplied exclusivelyby ECS to Medicann Health. Should Medicann not purchase such volumes it will be liable for 80% ofsuch volume not purchased in any calendar year. Termination of, or changes to, the Medicann OfftakeAgreement require mutual agreement.

Authorised on behalf of ECS Botanics Holding Ltd by Nan-Maree Schoerie, Managing Director.

About ECS Botanics Holdings Ltd

ECS Botanics Holdings Ltd is an Australian medicinal cannabis cultivator and manufacturer located in NorthwestVictoria. ECS utilises progressive and innovative cultivation methodologies to produce quality medicine in asustainable way, adopting regenerative and organic horticultural practices and renewable energy sources.Licenced by the Australian Therapeutic Goods Administration to manufacture GMP (equivalent to PIC/S, EUagencies are all PIC/S members) certified products, ECS has become a leading provider of high quality, affordablemedicinal cannabis.

For further information, please contact: [email protected]

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