Shares in Erin Resources Limited
(ASX:ERI) moved more than 50 per cent higher in morning trade after announcing a $60 million cannabinoids offtake agreement.
The deal has been inked by MGC Pharmaceuticals who are an EU based medical and cosmetic cannabis company.
Erin Resources last month entered into a binding heads of agreement with an option to acquire 100 per cent of the issued capital of MGC.
MGC’s deal with Natura Laboratories Limited is expected to immediately accelerate the company’s commercialisation timetable and initial revenue streams.
Erin Resources reported a net loss of $1.13 million in the first half of the 2015 financial year.
