ECS Botanics Holdings Ltd. announced that it has entered into a binding three-year agreement with German company Ilios Santé GmbH ("Ilios Sante") for the supply of medicinal cannabis products, which will generate a minimum of $9.9 million in revenue for the Company. Under the agreement ECS will exclusively supply 4 medicinal cannabis strains to Ilios Sante with a minimum revenue of $9.9 million of GMP manufactured medicinal cannabis products over the following 3 years. First supply is anticipated once product registration has been completed.

Both parties may terminate the agreement upon 10 days prior notice if either party breaches any provision of the agreement or is unable to establish or maintain industry quality standards, and fails to rectify within 30 days. ECS may also terminate the agreement if Ilios Sante fails to make any payment when due and has not remedied such non-payment within 10 business days following receipt of written notice. ECS can also immediately terminate the agreement upon written notice of an insolvency event.