STONY BROOK, N.Y.--(BUSINESS WIRE)--PRESS RELEASE--Applied DNA Sciences, Inc., a PCR-based DNA manufacturing company for product authenticity and traceability solutions, has announced that it has received the first $1 million of a $5 million licensing fee as per the terms of its exclusive agreement entered into with TheraCann International Corporation on March 29, 2019. The balance of $4 million in payments to Applied DNA is expected by mid-August in accordance with the terms of the agreement.
“The agreement with TheraCann represents further validation of the commercialization of our CertainT technology platform across industries where compliance, control and tracking are essential to marketplace safety and security,” noted Dr. James A. Hayward, president and CEO of Applied DNA. “Powered by our CertainT platform, TheraCann’s ETCH biotrace system can provide the global legal cannabis and hemp industries the unparalleled ability to ensure true authentication and origin verification for products through the supply chain."
Concurrently, the company announced that it received $793,000 through the cash exercise of 1,773,100 common stock warrants. Warrants were exercised to purchase 1,558,100 and 215,000 shares of common stock at the price of $0.44 and $0.50 per share, respectively. The warrants were originally issued as part of financings completed in December 2017 and December 2018. No inducements or incentives were offered to the parties exercising the warrants, and no commissions or placement fees have been paid related to the funds received from these exercised Warrants.
Additional information with respect to the TheraCann Agreement was filed via Form 8-K with the Securities and Exchange Commission on April 3, 2019. Additional details on the warrants may be found in Applied DNA’s quarterly filings with the Securities and Exchange Commission.
