Development and Marketing Agreement with
TheraCann International Will Create the First Seed-to-Sale Cannabis
Tracking System Combining Molecular Tagging and Blockchain
Technologies
Applied DNA Sciences, Inc. (NASDAQ: APDN, “Applied DNA,” “the
Company”) today announced the signing of an initial two-year, $1
million contract with TheraCann International Benchmark
Corporation, (“TheraCann”), a leading full service cannabis
consultancy with operations in the US, Canada, Australia, Europe
and South America, for the integration of the Company’s
SigNature® molecular tagging and testing technology into
TheraCann’s blockchain-based, seed-to-sale Enterprise Resource
Platform (ERP) for legal cannabis operations. Under the terms of
the contract, the companies have entered into a development and
marketing agreement whereby Applied DNA will develop the
technologies necessary to tag and authenticate legal cannabis
throughout the supply chain and seamlessly integrate tagging and
authentication data into TheraCann’s ERP and Blockchain platform.
Applied DNA will receive an initial payment under its contract with
TheraCann in the current quarter.
The rapid global adoption of legal cannabis legislation has
accelerated the need to secure and truly validate cannabis supply
chains from seed-to-sale. Current systems, many of which rely on
RFID or bar code technologies, are capable of accurately tacking
cannabis supply chains through the cultivation stage, but cannot
forensically track cannabis and/or cannabis derivative products
back to a specific source once the physical tags and packaging are
removed. This gap allows the opportunity for illegal diversion and
the introduction of illegally-sourced cannabis into legal supply
chains. Combining molecular tagging with digital tracking enhances
existing seed to sale systems to a new level of capability and
compliance with state, and international laws and guidelines.
In response to the known limitations of current seed-to-sale
systems, the State of Colorado this month introduced a new bill (SB
18-029) that mandates the addition of physical-chemical identifiers
(PCIDs), of which Applied DNA’s molecular tags comply, to all legal
cannabis plants grown in the state for the purposes of tracking
cannabis and cannabis derivative products back to their origin. As
the industry matures, next generation platforms, such as the one
under development by Applied DNA and TheraCann, will support
collaboration between regulators, law enforcement and producers in
shaping the future of the cannabis industry.
“Our molecular tag creates an immutable link between the
authenticity of goods and the authenticity of digital transactions
to serve as a unique and forensic identifier that becomes part of a
blockchain transaction throughout the supply chain,” stated Dr.
James A. Hayward, president and chief executive officer of Applied
DNA. “We believe that all blockchain platforms require forensic
origination to ensure the veracity of the subsequent distributed
ledger. The legal global cannabis industry is a complex supply
chain and, therefore, a natural fit for our proven technologies
across all medical and consumer applications. We are excited to
work with TheraCann to enhance traceability in the expanding legal
cannabis market.”
According to a market report from Arcview Research, the North
American legal cannabis market in 2017 was valued at $6.7 billion
per year and is expected to grow to $20.1 billion per year by 2021.
While cannabis remains illegal under US federal law, eight states
plus Washington DC have legalized cannabis for recreational use,
while twenty-nine states plus Washington DC have legalized cannabis
for medical use. An additional seven states are expected to
legalize cannabis in the coming year1. 15 countries outside the USA
have permitted medical cannabis. Canada has been operating a
federal medical cannabis program since 2001 and is expected to
federally legalize recreational cannabis by mid-20182.
Chris Bolton, Chief Operating Officer for TheraCann added, “The
platform under development by TheraCann and Applied DNA will be
uniquely suited to meet the growing demand for true forensic level
seed-to-sale tracking and diversion control systems globally. As
each new state or country legalizes medicinal or recreational
cannabis, it creates an opportunity for the broad-scale adoption of
our technologies.”
About Applied DNA Sciences
Applied DNA is a provider of molecular technologies that enable
supply chain security, anti-counterfeiting and anti-theft
technology, product genotyping and DNA mass production for
diagnostics and therapeutics. The Company makes life real and safe
by providing innovative, molecular-based technology solutions and
services that can help protect products, brands, entire supply
chains, and intellectual property of companies, governments and
consumers from theft, counterfeiting, fraud and diversion.
The proprietary DNA-based CertainT® platform can be used to
identify, tag, test, and track products, to help assure
authenticity, origin, traceability, sustainability and quality of
products. SigNature® DNA describes the core technology ingredient
that is at the heart of a family of uncopiable, security and
authentication solutions such as SigNature®T and fiberTyping®,
targeted towards textiles and apparel, BackTrac® and DNAnet®, for
anti-theft and loss prevention, and digitalDNA®, providing powerful
track-and-trace. All provide a forensic chain of evidence, and can
be used to prosecute perpetrators. Applied DNA Sciences is also
engaged in the large-scale production of specific DNA sequences
using the polymerase chain reaction.
Visit adnas.com for more information. Follow us
on Twitter and LinkedIn. Join our mailing
list.
About TheraCann International Benchmark Corporation
Founded in 2004, TheraCann International Benchmark Corporation
offers a one-stop, full-service solution for the International
cannabis marketplace including, government applications, planning,
facility design, cultivation, marketing and communications. With
nearly 5 million square feet of cannabis operations under
management and the successful launch of groundbreaking Enterprise
Resource Planning (ERP) software, Aeroponic cultivation systems and
integrated finCEN compliant blockchain solutions, TheraCann
provides cannabis-related businesses with solutions to fit their
regulatory requirements.
More information about TheraCann is available
at www.theracanncorp.com. Follow TheraCann on Twitter and
Linkedin.
Forward-Looking Statements
The statements made by APDN in this press release may be
“forward-looking” in nature within the meaning of the Private
Securities Litigation Act of 1995. Forward-looking statements
describe APDN’s future plans, projections, strategies and
expectations, and are based on assumptions and involve a number of
risks and uncertainties, many of which are beyond the control of
APDN. Actual results could differ materially from those projected
due to our short operating history, limited financial resources,
limited market acceptance, shifting enforcement priorities of US
federal laws relating to cannabis, market competition and various
other factors detailed from time to time in APDN’s SEC reports and
filings, including our Annual Report on Form 10-K filed on December
28, 2017, which is available at www.sec.gov. APDN undertakes no
obligation to update publicly any forward-looking statements to
reflect new information, events or circumstances after the date
hereof to reflect the occurrence of unanticipated events, unless
otherwise required by law.
1
https://www.forbes.com/sites/tomangell/2017/12/26/these-states-are-likely-to-legalize-marijuana-in-2018/2/#73b90f161b04
2
https://globalnews.ca/news/3867467/marijuana-legalization-canada-progress/
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180125005100/en/
Applied DNA Sciences, Inc.Investor: Sanjay M.
Hurry, 212-838-3777shurry@lhai.comorMedia: Cheryl
Schneider,
212-825-3210cschneider@dgicomm.comorProgram: Gordon
Hope,
631-240-8850gordon.hope@adnas.comorweb: www.adnas.comtwitter:
@APDN
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