Why the ECS Botanics (ASX:ECS) share price is smoking the ASX today

The agribusiness and hemp food company’s shares have continued their strong run for the week…
The post Why the ECS Botanics (ASX:ECS) share price is smoking the ASX today appeared first on The Motley Fool Australia. –

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.

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.

The post Why the ECS Botanics (ASX:ECS) share price is smoking the ASX today appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

3 growing ASX tech shares for growth investors

Wendy’s is suddenly a meme stock

Here’s what’s driving the BPH Energy (ASX:BPH) share price today
This tumbling ASX fintech should be 3 times current price: analyst

Here’s why the Whitehaven Coal (ASX:WHC) share price is on fire this week

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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!