ECS Botanics reports 50% increase in cannabis yields with new crop enclosure designs

Small Caps
2024-12-16

Australian medicinal cannabis cultivator and manufacturer ECS Botanics (ASX: ECS) has reported a 50% increase in cannabis flower yields following the first harvest from its redesigned protective crop enclosures.

The harvest produced 656 kilograms (wet weight) of flower compared to the previous high of 437kg of the same strain, also recording improvements in flower quality and the yield of “A-grade” buds.

Design improvements to ECS’s crop enclosures including upgraded lighting and heating for year-round cultivation are a main factor behind the increased yield.

Premium cannabis

Managing director Nan-Maree Schoerie said the increased yield reinforced the company’s reputation for producing premium organic medicinal cannabis.

“We are proud to celebrate the success of the first harvest from these new enclosures—it is a testament to the hard work and collaboration across multiple teams in our company,” she said.

“The yield and quality achievements solidify our commitment to operational excellence, innovation and providing the highest-quality medicinal cannabis through our business-to-business and business-to-consumer channels.”

New enclosures

ECS expects to have commissioned five out of nine new protective crop enclosures by the end of December, with the remainder scheduled in February.

On completion, the company will have 26 new enclosures in operation, targeting a forecast total production of over nine tonnes for financial year 2025.

ECS confirmed a minor budget overrun for the $250,000 electricity upgrade needed to power six of the enclosures year-round.

The company is applying for an additional power upgrade to two megawatts to support a total of 15 enclosures year-round from financial year 2026.

Ms Schoerie said ECS was well-positioned to introduce new flower strains and meet increasing demand for premium organic medicinal cannabis domestically and internationally.

European exports

ECS expects new and more stringent quality standards for cannabis flowers in the European Union to provide a competitive advantage in export markets.

Following the success of its Green Gelato dried cannabis flower, the company will export three strains to Germany From January.

However, registration in Poland has met with further delays due to ECS’s customer needing to change laboratories.

Sales should commence upon completion of that process.

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