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Today, we are featuring Epsilon Healthcare Limited (ASX:EPN), a medicinal cannabis manufacturer here in Australia!
Why it's time to treat medicinal cannabis as an alternative therapy, not a pharmaceutical
"The recent approval of two domestically produced cannabidiol (CBD) oil products – non-intoxicating cannabis compounds – may have provided new optimism to patients on cannabis prescriptions."
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Today, Epsilon Healthcare has released an announcement to the market stating that the Company had executed a binding term sheet and manufacturing agreement with privately-owned Cannim Australia Pty Ltd (Cannim).
Cannim have multiple supply agreements in place for flowers and oils into Germany, the United Kingdom and Australia. Under this newly signed agreement, Epsilon’s South Port facility will produce medicinal cannabis products from Cannim raw material for supply into both domestic and global markets. Cannim will pay Epsilon for these manufacturing services on a per-order basis.
For the next two years, THC Pharma, Epsilon’s manufacturing arm, will receive bulk imports of dried flowers for the packaging and release of Australian GMP dried flowers.
Epsilon has received three imports of Cannim’s cannabis starting material, and while there are no minimum order commitments, the Company expects to continue to see ongoing orders from Cannim and its partners moving forward. Epsilon is currently unable to disclose the exact revenue figures to be earned under this agreement, but are of the view that such revenue inflows will be material to the Company.
As of writing, EPN is currently up 12% for the day.
Where to from here?
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