Insights

Epsilon Healthcare (ASX:EPN) share price rockets 24% on new agreement

Scientists are still unlocking the full potential of medicinal marijuana.
The post Epsilon Healthcare (ASX:EPN) share price rockets 24% on new agreement appeared first on The Motley Fool Australia. –

The Epsilon Healthcare Ltd (ASX: EPN) share price is off to the races today, currently up 20% at 15 cents apiece after hitting an intraday high of 16.5 cents at midday.

Below, we take a look at the new manufacturing agreement that appears to be spurring investor interest in the ASX medicinal cannabis company.

What new manufacturing agreement was announced?

Epsilon Healthcare’s share price is soaring after the company reported it has executed a binding term sheet and manufacturing agreement with Cannim Australia Pty Ltd.

Cannim, established in 2017, cultivates cannabis in Jamaica and Australia. The privately held company has engaged Epsilon as its Australian GMP manufacturing partner.

Epsilon’s Southport Facility in Queensland will produce medicinal cannabis products from marijuana supplied by Cannim for supply into Australian and global export. Epsilon will receive payment from Cannim for its manufacturing services on a per-order basis

The initial agreement runs for 2 years.

According to the release, the first cannabis derived dried flower products have already been delivered and are available to patients by Epsilon under Cannim’s HummingBud brand.

Under the binding term sheet, the companies have agreed to further collaboration and manufacture over next 2 years.

Management commentary

Commenting on the agreement, Epsilon Healthcare CEO Jarrod White said:

Matching our high-volume EU GMP compliant Southport Facility with Cannim’s high volume GACP Jamaican medicinal cannabis places both companies in a strong position to deliver significant volumes of high-quality medicines for both the Australian and global export markets.

The partnership contemplates all areas of the Epsilon value chain, from local import and handling of dried product expertise, to export, and assisting in the logistics and distribution of the final product. This is reflective of the significant progress and capability improvements at our Southport facility in the preceding 12 months.

Epsilon Healthcare share price snapshot

Despite today’s big boost, the Epsilon Healthcare share price remains down 36% year-to-date. By comparison the All Ordinaries Index (ASX: XAO) is up 12% so far in 2020.

The last month has been kinder to Epsilon Healthcare shareholders, with shares up 19% since 21 September.

The post Epsilon Healthcare (ASX:EPN) share price rockets 24% on new agreement appeared first on The Motley Fool Australia.

Should you invest $1,000 in Epsilon Healthcare right now?

Before you consider Epsilon Healthcare, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Epsilon Healthcare wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Megaport (ASX:MP1) share price slides on record growth

Top brokers name 3 ASX shares to sell today

Tesla (NASDAQ:TSLA) breaks record for cars delivered in September quarter

Here’s why the Cimic (ASX:CIM) share price is up 8% on Thursday

Whitehaven Coal (ASX:WHC) share price falls as China intervenes in coal market

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!