ECS Botanics (ASX:ECS) has received a $2m funding facility from National Australia Bank (ASX:NAB) to underpin expansion operations, as the company also reports strong buyer interest in its Tasmanian medicinal cannabis farm.
The company is looking to sell off its Tasmanian assets as the company prioritises operations at its farm in Victoria.
Coming months will see the company undergo its Victorian Stage 3 expansion, which is expected double the size of its current cultivation area.
Several upgrades have been made at the Victorian farm this year.
NAB’s $2m loan will fund the ongoing efforts to expand acreage and, ultimately, boost output.
To get an idea of the scope of the company’s Vic operations, it’s interesting to look at the scale of activity since July 2021:
Constructed a new warehouse
Taken on 4 new drying rooms
Constructed a new propagation station
Installed over 2,100m2 of protective enclosures
Management seeks to boost its profile heading into 2023.
“In order to meet the demand for our products, we have…[invested] in new capacity which will look to double the secure cultivation area,” the company's managing director Nan-Maree Schoerie said.
“Deploying the most appropriate funding maximises value and returns for our shareholders,” Schoerie added, in reference to NAB’s facility.
ECS Botanics’ drive to corner a larger share of the Australian medicinal cannabis and hemp products market is prompting market interest: the company’s share price has risen 41% in the last month.
The company has also sold off its hemp food and wellness division for $0.25m to Ecofibre (ASX:EOF) subsidiary Ananda Food.
Ananda Food has regularly supplied ECS with products to sell in the past; the acquisition is expected to finalise in early August.
As part of the sale of the company's hemp division, Ananda will now start to sell hemp-based nutraceuticals (read: health supplements).
Get the latest news and media direct to your inbox