Australian hemp and medical cannabis company ECS Botanics (ASX:ECS) is confident the firm is on track for $2 million in revenue for Q3 FY2022.
If achieved, this would represent around a 39% increase on the previous quarter. Late last month, ECS released its Half Year Financial Report covering to the end of December last year that indicated revenue of $2,418,713 – a 312% increase on the prior corresponding period.
There has been a big shift in where the company is racking up sales. During the Q3 period last financial year, ECS says all of its revenue was sourced from hemp food and wellness sales, but it expects the current quarter to result in around just 20% of its revenue coming from hemp.
“This is reflective of the Company’s strategy and transition to a medicinal cannabis dominant business, which provides greater margins and long-term value for shareholders.”
In other news from ECS, the company announced the appointment of Jason Overfors as Post-Harvest Production Manager at its facility in Victoria. Mr. Overfors was previously Harvest Manager for a major Canadian cannabis company, Hexo Corp., where he assisted in lowering Hexo’s cost per gram during cultivation.
“As sales continue to increase, we remain focused on cost management, product quality, harvest and production optimisation. To assist this, it is my pleasure to welcome Jason Overfors to the team,” said ECS Managing Director, Alex Keach.
ECS Botanics’ Victorian operations came from the company’s acquisition of medical cannabis cultivator Murray Meds, which was completed in March last year. The facility is located on a seven-acre site on the Murray River in the north-west of the state and is an outdoor operation, using organic and regenerative farming principles. Practices at the facility include conservation tillage, permaculture, cover crops, crop rotation, composting and pasture cropping. It has been reported elsewhere that its production costs are as low as 60c per gram.
ECS has also recently released a couple of new videos, providing a look at the company’s operations and manufacturing practices.
In February, ECS Botanics announced it had completed its first shipment of dried cannabis flower to the UK.