It's been a big day for ECS Botanics, as the company secured a Tasmanian distribution agreement and announced an investment in TapAgrico
The industrial hemp seed grower and innovative food brand, ECS Botanics Holdings Ltd (ASX:ECS) announced a strategic investment into a strategically located grain handling, marketing, storage and export packing facility in the northern midlands of Tasmanian known as Tasmanian Agricultural Producers Pty Ltd (TapAgrico).
TapAgrico is currently locally owned, while also receiveing substanitial support from local growers including cereal and oilseed producers.
The investment by ECS Botanics comes at a critical time in the growth of the Tasmania's hemp industry, and will be used to bankroll the purchase of additional key infrastructure elements, including a hemp seed dryer, storage and handling equipment.
These acquisitions will underpin the future expansion of the company's cultivation capabilities, along with other hemp producers in the state. Under the agreement, ECS Botanical will initially invest $750,000 in TapAgrico for a 28.4% stake in the business.
The company will also retain an additional call option to increase this stake to 34.6% on the same terms, if there are no future changes to TapAgrico's share structure.
According to the CEO of ECS Botanics, Alex Keach, the company's management is bullish about the new investment.
"We are very excited to be working with the TapAgrico team to execute on a shared vision and significant opportunity at a time when Tasmania requires key infrustucture and capacity to support the expansion of the hemp industry," Keach said.
"This investment enables ECS to position itself ideally for anticipated developments and growth in the local industry."
– ECS Botanics CEO, Alex Keach
ECS Botanics also announced today that it had signed a retail food distribution agreement with Eden Foods for its range of retail food products.
The agreement is a big win for ECS, as Eden Foods represents food manufacturers to a range of customers in the Tasmanian marketplace including, IGA, gourmet shops, premium chocolate and confectionery shops, hotels, restaurants & cafes.
As part of the deal, ECS Botanics' retail food range—which includes hemp hearts, hemp seed oil, capsules, curry sauces, soups and protein mixes—will be made available to Eden Foods network of retailers in Tasmania.