– Applied DNA to Receive Staged Payments
Totaling $5M Over the Next Four-Months –
– Agreement Calls for Annual Payment Minima
that Scale from $7 Million in Year 3 to $20 Million in Year 15
–
– Applied DNA Technology to Power ETCH
BioTtrace System to Verify Legal Cannabis and Hemp Markets Globally
–
Applied DNA Sciences Inc. (NASDAQ: APDN) (“Applied DNA”), a
leader in PCR-based DNA manufacturing for product authenticity and
traceability solutions, and TheraCann International Benchmark
Corporation (“TheraCann”), a leading global full service legal
cannabis and hemp consultancy, announced that they have entered
into an exclusive licensing and cooperation agreement (the
“Agreement”) that grants TheraCann’s wholly-owned subsidiary, ETCH
BioTrace, S.A., the use of Applied DNA’s CertainT® supply chain
integrity platform technology within the global legal cannabis and
hemp markets. Under the terms of the Agreement, a $5 million
up-front licensing fee is payable to Applied DNA over a four-month
period beginning on or before April 15, 2019, and completed by
October 15, 2019.
Pursuant to the Agreement, Applied DNA will be the exclusive
supplier of molecular tags (provided as SigNature®), molecular tag
application systems and molecular tag authentication systems for
TheraCann’s ETCH biotrace seed-to-sale-tracking system. The Parties
will jointly market and sell the system, with a profit share after
the recoupment of initial investments. The Agreement also calls for
specific annual minimum payment milestones to Applied DNA, starting
in year two, and scaling from $7M in year three to $20M in year
fifteen.
“This Agreement – containing the largest payment transaction in
our company history – demonstrates further validation of our DNA
technology platform and its commercialization across industries
where compliance, control and tracking are essential to marketplace
safety and security,” stated Dr. James A. Hayward, president and
CEO of Applied DNA. “The impact on our balance sheet is beneficial
and will allow us to respond to the requests for pre-commercial
pilots we have already received. We believe the growing demand for
legalized cannabis is driving the creation of the industry’s global
supply chains and is accelerating the need for solutions to secure
and validate them from inception through consumption, destruction
and/or recall. Powered by our CertainT platform, TheraCann’s ETCH
biotrace system can offer the global legal cannabis and hemp
industry the unparalleled ability to ensure true authentication and
provenance verification. Given TheraCann’s growing standing in the
industry, and in conjunction with TheraCann’s Benchmark SOLUTION™,
full turn-key cannabis project offering, we believe that this
Agreement effectively places Applied DNA at the heart of a
fast-growing industry.”
Jason Warnock, CEO of TheraCann International stated, “The
marketplace has responded with gusto to our shared ETCH biotrace
platform. Multiple letters of intent from numerous countries that
wish to protect their licensed cannabis supply chain to maximize
international export opportunities already anticipate commercial
trials, and quotations are with customers for large scale
supply.”
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
pre-clinical nucleic acid-based therapeutic drug
candidates.
Applied DNA 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. Visit adnas.com for
more information. Follow us on Twitter and LinkedIn.
Join our mailing list. Common stock listed on NASDAQ under the
symbol APDN, and warrants are listed under the symbol APDNW.
About TheraCann International Corporation
Founded in 2016, TheraCann International Benchmark Corporation
offers a one-stop, full-service solution for the International
cannabis marketplace. TheraCann provides business, technology and
industry experts who apply advanced technology and help clients
plan, design, implement and manage their cannabis businesses.
Integrating nearly 3.5 million square feet of cannabis operations
and the successful launch of groundbreaking Enterprise Resource
Planning and Compliance (ERP+C) software, vertical computer
automatex cannabis aeroponic cultivation systems (Sprout AI) and
patented genetic tracking and diversion prevention systems (ETCH
BioTrace), TheraCann provides cannabis-related businesses with
solutions to fit their international banking and cannabis license
regulatory requirements.
More information about TheraCann is available at
www.theracann.solutions, www.etchbio.solutions,
www.sproutai.solutions, and www.OS2.solutions. Follow us on Twitter
or LinkedIn.
Forward Looking Statements
The statements made by Applied DNA 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 Applied DNA’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
Applied DNA. Actual results could differ materially from those
projected due to its history of net losses, limited financial
resources, limited market acceptance, shifting enforcement
priorities of US federal laws relating to cannabis, and various
other factors detailed from time to time in Applied DNA’s SEC
reports and filings, including our Annual Report on Form 10-K filed
on December 18, 2018 and our subsequent quarterly report on Form
10-Q filed on February 7, 2019, and other reports we file with the
SEC, which are available at www.sec.gov. Applied DNA
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190329005086/en/
For Applied DNA:investor contact: Sanjay M. Hurry,
212-838-3777, shurry@lhai.comprogram/media contact:
John Shearman, 631-240-8838,
john.shearman@adnas.comweb: www.adnas.comtwitter:
@APDN
For TheraCann Benchmark International:investor
contact: Jason Warnock, CEO, +1 (844) 877-2649 ext.3002,
jwarnock@theracanncorp.comprogram contact: Chris
Bolton, COO, +1 (844) 877-2649 ext. 3004,
cbolton@theracanncorp.commedia contact: Celia
Villarreal Osorio, Director Marketing, +1 (844) 877-2649
ext. 3044,
cvillarreal@theracanncorp.comweb: www.theracann.solutionstwitter:
@theracanncorpLinkedIn: theracann-corp
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