Applied DNA and TheraCann International Sign Term Sheet to Amend Licensing and Cooperation Agreement
August 05 2019 - 9:00AM
Business Wire
Amendments fortify the Agreement, allow revenue
recognition, and strengthen the Applied DNA Balance Sheet
Applied DNA Sciences Inc. (NASDAQ: APDN)
(“Applied DNA” or the “Company”), a leader in PCR-based (Polymerase
Chain Reaction) DNA manufacturing for product authenticity and
traceability solutions, today announced that the Company and
TheraCann International Benchmark Corporation (“TheraCann”) have
signed a non-binding term sheet (the “Term Sheet”) outlining
agreed-upon amendments to the exclusive licensing and cooperation
agreement signed March 28, 2019 between the parties (the
“Agreement”). The Term Sheet is expected to be followed by
definitive contractual amendments.
Under the Term Sheet, the parties agreed to amend the Agreement
to provide Applied DNA with $4M in TheraCann convertible preferred
stock and a $1M convertible promissory note in exchange for Applied
DNA’s waiver of $4M in cash payments due from TheraCann on or
before August 15, 2019. Recognition of $4 million in revenue by
Applied DNA (unaudited) will take effect with the signing of the
definitive agreement(s), expected in the current quarter.
“The contractual amendments will be mutually beneficial and is a
testimony to the strength of our relationship with TheraCann,”
stated Dr. James Hayward, president and CEO of Applied DNA. “The
amendments will strengthen the Applied DNA balance sheet as well as
increase Shareholder Equity as we enter the Nasdaq delisting
appeals process, and at the same time, allow TheraCann to remain in
compliance with the terms of Agreement as it pursues listing on the
TSX Venture Exchange.”
“Our commercial opportunities are steadily strengthening and
combined with the contractual amendments will enable our rapid
growth for our current and future shareholders,” said Jason
Warnock, CEO of TheraCann.
Applied DNA notes that the Term Sheet is a preliminary and
non-binding document. All terms contemplated therein will only
become operative if definitive contractual amendments are signed.
It is possible that no definitive contractual amendments will be
reached, or, the amendments may differ from those described
above.
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
Founded in 2004, 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.
More information about TheraCann is available at
www.theracanncorp.com. 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 ability to repay the Notes if not converted,
history of net losses, limited financial resources, limited market
acceptance, ability to maintain its NASDAQ listing, 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 reports on
Form 10-Q filed on February 7, 2019 and May 9, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20190805005232/en/
For Applied DNA: investor contact: Sanjay M.
Hurry, LHA Investor Relations, 212-838-3777, shurry@lhai.com
web: www.adnas.com twitter: @APDN
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