- ECS Botanics (ECS) has lodged plans with the Office of Drug Control to expand its cultivation area and consolidate its business model in Tasmania
- The company hopes to expand from 2500 square metres to 320,000 square metres, the first expansion of its kind in Australia
- ECS says the expansion will allow it to significantly reduce the price per gram of its products, from 60 cents per gram down to 20 cents per gram
- The plans submitted to the Office of Drug Control outlines the extensive intellectual property ECS has developed to handle this level of cannabis material
- With the plans lodged, the company believes it is positioned to become a leading supplier of isolates, a market with very little current competition
- ECS Botanics shares last traded at 5 cents
ECS Botanics (ECS) has lodged plans with the Office of Drug Control to expand its cultivation area and consolidate its business model in Tasmania.
Tasmania is well known as a world leader in cultivating and manufacturing plant-based pharmaceuticals at scale, currently producing approximately 50 per cent of the world’s narcotic raw material made of poppies for pain medications like morphine and codeine.
The company hopes to expand from 2500 square metres to 320,000 square metres – the first cannabis expansion of its kind in Australia, replicating Tasmania’s opium sector.
ECS Botanics says the expansion will allow it to significantly reduce the price per gram. The company currently cultivates at 60 cents per gram but aims to bring this down to as low as 20 cents per gram.
The plans submitted to the Office of Drug Control outline the extensive intellectual property ECS has developed to handle this level of cannabis material, with the previous design and build in Tasmania already factoring in a major expansion.
The expansion will focus on areas outside the existing secure medicinal cannabis facility compound in Tasmania, which includes the remaining 35,000 square metres of the existing property, plus additional lease irrigated properties nearby.
ECS anticipates future production from these sites will see the production of biomass, oil and isolate markets. The focus will be non-psychoactive cannabinoids, particularly CBD, with the opportunity to supply terpenes and other non-psychoactive cannabinoids.
“This expansion plan is big thinking and a first in Australia, it will enable multiplication of revenues while becoming a world class cultivator and manufacturer,” said ECS Botanics Managing Director Alex Keach.
“This part of the strategy enables ECS to grow into the ever-increasing demand for cannabis extracts and API’s. We have immense confidence in this next step of agriculturalising and industrialising cannabis following the success of our commercial size trial crop in Tasmania.”
ECS says it is positioned to become a leading supplier in the market for isolates, with very limited competition at this stage.
ECS Botanics shares last traded at 5 cents on April 13.