The ECS Botanics Holdings Ltd (ASX: ECS) share price is surging higher following an update on the company's performance for 2021.
At the time of writing, the agribusiness and hemp food company's shares are up 7.32% to 4.4 cents. It's worth noting that during morning trade, ECS shares rose to an intraday high of 4.8 cents before profit-takers swopped in.
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What did ECS announce?
In today's statement, ECS advised it is achieving strong sales growth from its first commercial harvest at its Victorian facility. The robust result is being driven by new customer contracts along with increased demand for its medicinal cannabis products. Current quarter sales have reached more than $0.5 million, with orders received from both domestic and international customers.
As a result, the company is forecasting to hit $2 million in sales by the end of the calendar year of 2021. This marks a significant jump on the $0.58 million recorded for the first-half of FY21.
In order to cater for the surging demand, ECS is currently expanding its premium dried flower cultivation capacity. Construction of 2,000 square meters of protective cropping enclosures will add to the company's existing 1,000 square meter facility. The additional room allows ECS to cultivate specific strains of the medicinal cannabis premium dried flower for its customers.
Furthermore, the company is also extending its Good Manufacturing Practice (GMP) licence to include packing dried flower products.
ECS managing director, Alex Keach commented:
The sales performance from our Victorian facility is very encouraging and demonstrates the growing appeal for Australian grown products. Based on the orders received and the increased enquiries from local and European customers, we are increasing our premium dried flower cultivation capacity threefold. There is significant momentum in the business and several developments are imminent.
ECS share price summary
The ECS shares rocketed higher in the last 6 months, before coming back to early December levels. This wild share price rise was attributed to the company's takeover announcement of Murray Meds.
Looking at a longer timeframe, ECS shares have soared by more than 50% in the last 12 months.
