Applied DNA Signs Term Sheet with TheraCann International for Exclusive License of CertainT Platform in Legal Cannabis and Hemp
Applied DNA Sciences Inc. (NASDAQ: APDN) (“Applied DNA,” or “the Company”), 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 today that they have entered into a non-binding Term Sheet (the “Term Sheet”) for a long term exclusive licensing agreement for the use of Applied DNA’s proprietary CertainT supply chain integrity platform technology within TheraCann’s ETCH BioTrace seed-to-sale tracking system. The Term Sheet is expected to be followed by a definitive agreement (the “Agreement”).
Upon a signed Agreement TheraCann will pay to Applied DNA $5.0 million in non-contingent phased payments over a period of six (6) months from the date of the signing of the Agreement. In addition, Applied DNA will be the exclusive supplier of SigNature molecular tags, molecular tag application systems and molecular tag authentication systems to TheraCann for use within TheraCann’s ETCH Biotrace system. The term of the exclusive license to TheraCann is patent term for patented aspects, and 20 years for non-patented components.
“Having initiated our relationship with TheraCann in early 2018 through a funded development agreement and working together to establish a go-to-market strategy and robust joint business development pipeline that includes 12 near-term revenue opportunities, we are very pleased to move closer to formalizing a new phase of our relationship with TheraCann,” said Dr. James Hayward, President and CEO of Applied DNA. “Over the past year, TheraCann has been an incredible business partner, and we look forward to supplying our CertainT platform as an integral component to the ETCH Biotrace system that is capable of true seed-to-sale tracking of legal cannabis, hemp and their derivative products.”
Chris Bolton, COO of TheraCann said, “It is with great pleasure that we have the opportunity to work more closely with Applied DNA and to take ETCH BioTrace to the global market. We believe that ETCH BioTrace will assist global governments, law enforcement, producers, processors and distributors in stabilizing the cannabis supply chain and to assist with both domestic and international import and export.”
Applied DNA cautions investors that the Term Sheet is a preliminary and non-binding document. All terms contemplated in the Term Sheet, including all upfront payments totaling $5.0 million, will only become operative if a definitive agreement is executed. It is possible that no definitive agreement will be reached, or, its terms or conditions may differ from those described above.
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 design, build and run their cannabis businesses. Integrating nearly 3.5 million square feet of cannabis operations and the successful launch of groundbreaking Enterprise Resource Planning (ERP) software, Aeroponic cultivation systems and patented genetic tracking and diversion prevention systems, TheraCann provides cannabis-related businesses with solutions to fit their regulatory requirements.
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.