• Continued rapid growth of B2C business, now 33% of total sales
• Launched new B2C products VESIsorb® & OzSun
• On track for record cannabis harvest in 2025 with 50% yield increase

ECS Botanics Holdings Ltd, a leading medicinal cannabis company, provided an update on its activities for the quarter ending 31 December 2024 (Q2 FY25). The company's B2C business continued its rapid growth, with Q2 sales of $1.2 million, up 339% on the prior quarter, and now representing 33% of total sales. ECS launched new B2C products including VESIsorb®, an advanced delivery system, and OzSun, a lower-priced organic, sun-grown medicinal cannabis dried flower range. Total quarterly revenue was $4.9 million, down 2% on the prior quarter and 33% on the prior corresponding period, due to a shift in patient demand toward flower-based products and a transition from oils to other formats. ECS has adjusted its product dosage forms to align with market demand. The company's cash receipts were $4.7 million, up 7.3% quarter-on-quarter but down 28% on the prior corresponding period, as the focus remains on growing B2C sales, which have a longer receivable profile. ECS has a record order book of $10.8 million, the bulk of which is expected to be collected over the coming six months. The company also increased its PCE-grown cannabis yields by 50%, putting it on track for a record harvest in 2025. ECS has established a Medical Advisory Board to provide expert guidance and oversight to the medical industry, and has made progress in identifying and qualifying partners for the sales of Terphogz products in Germany, the UK, and New Zealand. The company expects to achieve positive cash flows within the next six months as the strong order book is fulfilled, the Terphogz business commences, and the B2C segment stabilizes.

ECS expects to be generating positive cash flow within the next six months due to improved sales volumes and stabilization of B2C working capital.

ECS' business is at a pivotal moment, with strong growth in the B2C segment driving both revenue and customer engagement. The company is well-equipped to continue meeting patient needs and driving improved value for shareholders, with exceptional farming assets, a scalable brand portfolio, and a rapidly expanding customer base.