Applied DNA Enters into Master Services Agreement with Flora Growth for Cannabis Validation and Authentication, Secures First Statement of Work Contract

Rhea-AI Summary

Applied DNA Sciences (NASDAQ: APDN) has signed a Master Services Agreement with Flora Growth (NASDAQ: FLGC) to integrate its CertainT® platform for cannabis product validation and authentication. The company will implement this technology across three locations (1 in Florida, 2 in Colombia) to enhance supply chain transparency and product trust. The CertainT platform, which includes molecular tagging, aims to support Flora's global distribution strategy and compliance with pharmaceutical standards as they expand in international markets like Australia. Financial details were not disclosed.

Positive

• Strategic partnership with Flora Growth to integrate CertainT® platform enhances supply chain security.
• Implementation in multiple locations supports Flora's global distribution strategy and compliance with international standards.

Negative

• Financial terms of the agreement were not disclosed, leaving uncertainty on revenue impacts.
• Risks associated with the cannabis industry, including shifting regulations and market acceptance.

- CertainT® Integration with TruTrace StrainSecure™ Platform to Power Flora Growth’s Global Distribution Strategy -

STONY BROOK, N.Y.--(BUSINESS WIRE)-- Applied DNA Sciences, Inc. (NASDAQ: APDN) (Applied DNA or the “Company”), a leader in Polymerase Chain Reaction (PCR)-based DNA manufacturing and nucleic acid-based technologies, today announced that it has entered into a Master Services Agreement (the “MSA”) with Flora Growth (NASDAQ: FLGC) (Flora) to deploy the Company’s CertainT® platform as part of Flora’s global cannabis product validation and authentication platform for consumers, distributors, and government regulators. Concurrently, the Company received a Statement of Work (SOW) under the MSA from Flora to implement its CertainT platform and supply related equipment and services for three locations (1 in Florida; 2 in the Republic of Colombia), where the Company’s molecular tags will be applied to quantities of Flora’s cannabis flower and derivatives, as well as select products in their portfolio. Financial terms of the SOW were not disclosed.

The MSA is the result of the Company’s strategic alliance, referral, and technology integration agreement with TruTrace Technologies, Inc. (CSE: TTT; OTCQB: TTTSF) (TruTrace) under which TruTrace’s blockchain-based StrainSecure™ platform was integrated with CertainT to deliver a complete, end-to-end supply chain security solution to cannabis companies. Flora will employ the integrated CertainT-StrainSecure solution to support its product validation and authentication platform to be utilized to deliver on Flora’s previously announced commercial agreements to export cannabis products internationally to open markets like Australia.

Flora, a manufacturer and wholesaler of cannabis and cannabis derivative products and operator of one of the largest outdoor cannabis cultivation facilities, is differentiated by its use of natural ingredients and value-chain sustainability. Flora’s cannabis derivative products are used in premium cosmetics, hemp textiles, and food and beverage applications.

“Business imperatives centered on branding and supply chain mastery will be the defining characteristics of cannabis companies positioning to compete globally. To that end, CertainT’s value proposition delivers brand and product differentiation, IP protection, and supply chain security from inception to consumption that, we believe, will further catalyze interest and adoption of our platform,” stated Dr. James A. Hayward, president and CEO of Applied DNA. “CertainT offers customers like Flora unmatched levels of transparency, traceability, and trust across their supply chains that are further improved through our integration with TruTrace. We are very pleased to undertake our first international commercial cannabis venture alongside Flora and, given its growing and diverse portfolio of cannabis and cannabis derivative products, we believe we are in the early stages of a mutually beneficial commercial relationship with Flora.”

Robert Galarza, CEO of TruTrace, stated, “The first fruits of our partnership with Applied DNA have been realized and at a time when the cannabis industry’s globalization has accelerated the need for solutions to verify supply chains in defense of a brand’s intellectual property and brand equity. Companies like Flora, who recognize and address this need, will hold a competitive advantage in the market and offer compelling value to end-customers. The integration of our platform with CertainT is designed specifically to meet that need.”

About the CertainT® Platform

The CertainT platform has three technology pillars (Tag, Test, Track), which allows raw materials and products to be tagged with a unique molecular identifier. This identifier can then be tested for its presence as it travels throughout a global supply chain. All the data points associated to tagging and testing are tracked by uploading to a secure cloud database. The CertainT platform can be used across industries such as textiles, cannabis, military, leather, fertilizer, pharmaceuticals, personal care.

About Flora Growth Corp.

Flora is a cannabis company that leverages natural, cost-effective cultivation practices to supply cannabis derivatives to its diverse business divisions of cosmetics, hemp textiles, and food and beverage. As the operator of one of the largest outdoor cultivation facilities, Flora strives to market a higher-quality premium product at below market prices. By prioritizing natural ingredients and value-chain sustainability across its portfolio, Flora creates premium products that help consumers restore and thrive. Visit http://www.floragrowth.ca/ or follow @floragrowthcorp on social for more information.

About TruTrace Technologies

TruTrace Technologies is the developer of fully-integrated software, secured on a blockchain infrastructure, that gives clients’ the ability to store, manage, share and immediately access quality assurance and testing details, COAs, as well as motion and movement intelligence on inventory. The platform was specifically designed to power the traceability of testing standards within the legal cannabis, nutraceutical, food and pharmaceutical space with a focus on the authentication of source materials or ingredients used in formulation. For more information, please visit https://www.trutrace.co/.

About Applied DNA Sciences

Applied DNA is commercializing LinearDNA™, its proprietary, large-scale polymerase chain reaction (“PCR”)-based manufacturing platform that allows for the large-scale production of specific DNA sequences.

The LinearDNA platform has utility in the nucleic acid-based in vitro diagnostics and preclinical nucleic acid-based drug development and manufacturing market. The platform is used to manufacture DNA for customers as components of in vitro diagnostic tests and for preclinical nucleic acid-based drug development in the fields of adoptive cell therapies (CAR T and TCR therapies), DNA vaccines (anti-viral and cancer), RNA therapies, clustered regularly interspaced short palindromic repeats (CRISPR) based therapies, and gene therapies.

The LinearDNA platform also has non-biologic applications, such as supply chain security, anti-counterfeiting and anti-theft technology. Key end-markets include textiles, pharmaceuticals and nutraceuticals, and cannabis, among others.

Leveraging its deep expertise in nucleic acid-based technologies, the Company has also established safeCircle™, a pooled COVID-19 testing program that is grounded in the Company’s EUA-authorized Linea™ COVID-19 Assay Kit. safeCircle is designed to look for infection within defined populations or communities utilizing pooled testing methodologies that increase testing efficiencies. The Company has also developed and plans to seek EUA-authorization for its Linea^TM SARS-CoV-2 Mutation Panel, an assay-based panel for the detection of certain SARS-CoV-2 genetic mutations.

Visit adnas.com for more information. Follow us on Twitter and LinkedIn. Join our mailing list.

The Company’s common stock is listed on NASDAQ under ticker symbol ‘APDN,’ and its publicly traded warrants are listed on OTC under ticker symbol ‘APPDW.’

Applied DNA is a member of the Russell Microcap® Index.

Forward-Looking Statements

The statements made by Applied DNA in this press release may be “forward-looking” in nature within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform 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, including Applied DNA’s ability to successfully enter into commercial contracts for the implementation of its CertainT® platform, shifting enforcement priorities of US federal laws and other international laws relating to cannabis and cannabis derivative products, 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 17, 2020, and Quarterly Reports on Form 10-Q filed on February 11, 2021, May 13, 2021, and August 12 2021, 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 or to reflect the occurrence of unanticipated events, unless otherwise required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210908005731/en/

For Applied DNA:

Investor contact: Sanjay M. Hurry, 917-733-5573, sanjay.hurry@adnas.com

Program contact: John Sherman, 631-240-8838, john.sherman@adnas.com

Web: www.adnas.com

Twitter: @APDN

Source: Applied DNA Sciences, Inc.

FAQ

What is the agreement between Applied DNA (APDN) and Flora Growth (FLGC)?

Applied DNA has entered into a Master Services Agreement with Flora Growth to integrate its CertainT® platform for cannabis product validation.

How will the CertainT® platform impact Flora Growth's operations?

The CertainT® platform will enhance Flora Growth's supply chain transparency and compliance with pharmaceutical standards as they expand internationally.

What locations will the CertainT® platform be implemented in?

The platform will be implemented in one location in Florida and two locations in Colombia.

What are the potential risks associated with the Applied DNA and Flora Growth partnership?

Risks include financial uncertainties due to undisclosed terms and potential regulatory challenges in the cannabis sector.

What is the significance of the partnership for Applied DNA (APDN)?

The partnership represents Applied DNA's first international cannabis venture, potentially enhancing its market presence.