Applied DNA Receives Initial $1 Million Payment from TheraCann International
STONY BROOK, N.Y., (April 24, 2019) – Applied DNA Sciences, Inc. (NASDAQ: APDN) (“Applied DNA” or the “Company”), a leader in PCR-based DNA manufacturing for product authenticity and traceability solutions, announced today 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 (“TheraCann”) 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 thousand 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.
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.
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Common stock listed on NASDAQ under the symbol APDN, and warrants are listed under the symbol APDNW.
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.
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