eSense receives sales boost with VaporSpec order
Life science company eSense-Lab Ltd (ASX:ESE) has received an additional order from North American partner VaporSpec Inc.
The order is for 10,000 30ml bottles of electronic cigarette liquid (e-juice) and follows a successful test shipment of 500 bottles.
The product will be marketed under VaporSpec’s white label brand and distributed in the US vaping market.
As a backdrop, eSense creates natural plant-based products that heal and delight.
Headquartered in Israel, eSense-Lab combines genetics, mRNA, protein expression and phytochemical profiles to generate a comprehensive model of rare or high value plants.
With multi-disciplinary research and development expertise, the company employs unique reverse engineering capabilities and game-changing techniques that enable re-engineering the chemical composition found in plants and reformulating these for numerous commercial applications.
Cannabis is the first plant eSense is targeting for re-engineering.
eSense is creating a cannabis plant that has all the characteristics of the real thing, but does not contain the psychoactive and more heavily regulated cannabinoid compound.
Strong demand for e-liquids
Also known as e-liquids, e-juice is used for vaporising or “vaping”, and is considered a safer alternative to smoking.
Expressing his satisfaction with this recent order and pointing to the prospect of continued sales success, group chairman Piers Lewis said, “I am extremely pleased to update the market on the continued supply of our products to VaporSpec based on the supply agreement signed earlier this year.
“This is a real vote of confidence and shows the satisfaction and trust that VaporSpec has in our products.
“I look forward to informing the market about the continuation of our activities and successes.”
After receiving and market testing the first shipment of 500 bottles, VaporSpec is continuing to fulfil orders for more e-juice as per the multi-year agreement signed between the e-Sense and VaporSpec.
However, there are signs that eSense has only just dipped its toe in the water in what is already a huge market.
As the following indicates, the e-liquids industry is a fast growing multi-billion dollar market that is expected to increase by approximately 50% to US$50 billion between 2021 and 2025.
A commercial distribution agreement negotiated in February to supply e-juice in the US and Canada called for minimum quantities to increase from 450,000 bottles in the first year to 5 million bottles in year three of the agreement.
VaporSpec is a California-based company distributing wholesale and retail products to the vaping industry.
This order further demonstrates e-Senses’s accelerating commercialisation strategy which has seen the company enter supply agreements with US and UK based entities.
In December, eSense negotiated a commercial agreement with UK-based E-Quits, and following the previous purchase of seven litres of eSense-Lab products, a new shipment of material was ordered by EQuits for distribution in the United Kingdom.