eSense-Lab (ASX: ESE) has clinched a A$1.1 million distribution agreement to take its plant-based terpene strains to the United Arab Emirates market.
The company secured the three-year binding sales and distribution contract with IC ACCESS, which has a minimal annual commitment of A$366,000.
As part of the agreement eSense-Lab will modify its terpene product line to suit the United Arab Emirates market and IC will have an exclusive right to market, sell and distribute the products in the region.
“United Arab Emirates is an extremely attractive market, with many applications for our products,” eSense-Lab chief executive officer Haim Cohen said.
“The United Arab Emirates has unique needs and new applications for our terpenes strains may arise from this market,” he said, adding IC had the means and connections to ensure implementation of the terpene products in the United Arab Emirates market.
This latest distribution deal follows a memorandum of understanding in mid-December with Australian brewer Young Henry’s Brewing Company to develop a line of terpene infused beer products.
Meanwhile, in November last year, eSense-Lab finalised its beta cannabis terpene infused chocolate with Healthy Chocolate Florida in an attempt to get a foothold in the United States’ US$4.5 billion retail cannabis market.
According to eSense-Lab, the companies are working on the product’s consumer requirements and are targeting finalising the product by mid-year.
eSense-Lab created the world’s first natural reformulated cannabis terpene profiles. The company has 10 formulations available and is developing a further 20.
The company claims its terpenes provide health and medical benefits including its cannabis-based formulations.
Medicinal cannabis market
eSense-Lab joins the ranks of numerous ASX-listed medicinal cannabis stockstaking advantage of easing restrictions across the world to develop cannabis-based products for a myriad of purposes.
US cannabis retail sales are anticipated to have grown 30% during 2017 on 2016 levels, with the global market forecast to be valued at $500 billion by 2029.
Shares in e-Sense-Lab were at A$0.29 in mid-morning trade up 1.75%.