New Opportunity in the Cannabis Industry
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FluroTech (TSXV:TEST) is an Alberta-based technology company dedicated to providing a fast, accurate, and cost-effective testing platform for the cannabis industry. To this end, FluroTech Ltd. has designed and developed a proprietary technology, CompleTest™, which uses fluorescence spectroscopy technology with specific test kits that each measure the content of a given attribute including CBD, THC, pesticides, heavy metals and more.
The CompleTest™ device was developed in collaboration with the University of Calgary and the University of Alberta, originally conceptualized by FluroTech CTO Dr. Elmar Prenner. The portable, user-friendly device provides accurate results within minutes. This is in contrast to traditional lab testing, which typically takes between three days and three weeks to deliver results.
As regulated cannabis markets continue to emerge in North America, and with the Canadian recreational market on the horizon, the need for rapid and effective testing is pressing. Regulatory bodies will require licensed producers to test their products to ensure they meet the established requirements for sale putting increased pressure on the already overloaded certified labs. As the industry is currently supplied by labour intensive and expensive third-party testing laboratories, cultivators, processors and retailers are recognizing the benefit of having access to a user-friendly solution on-site that can be employed during the entire growing cycle. In addition, the technology could be indispensable for government regulators and enforcement agencies looking to implement roadside testing of cannabis product use.
CompleTest™ plays a key role in testing cannabis for potency and contaminates, providing greater ease and efficiency for licensed producers to optimize harvest time while delivering a safe product. The device along with associated test kits are set to be invaluable across the entire cannabis chain, from growth to extraction to consumption.
FluroTech is in the process of finalizing its heavy-metal testing capability, targeted for market launch in the second half of 2018, followed closely by THC and CBD potency testing. These will be followed by an additional five revenue streams including pesticide testing, myclobutanil – aflatoxins testing, roadside testing, industrial testing, and biomarking. As the company continues to develop its capabilities, it will also work towards securing global patents for its proprietary technology as it penetrates markets in the US and worldwide.
With plans for revenue generation commencing Q4 2018, FluroTech has initiated establishment of a Licensed Producer customer base in Canada, initially in the Alberta and British Columbia regions. Both provinces host numerous licensed producers, ranging from recent market entrants to established, profitable corporations. The company is engaged with a number of producers to conduct field trials to further refine its product. Once FluroTech has expanded across Canada, the company plans to target the United States, followed by further expansion into the European market.
FluroTech is led by a management team with extensive experience in biotech, finance, and marketing. The team includes Dr. Elmar Prenner, company CTO, who holds two patents for antimicrobial peptides and optic filters. Management is significantly invested in the company, holding over 30 percent of shares.
- Proprietary technology designed to test cannabis products for multiple attributes
- Seven planned revenue streams
- Revenue generation to begin in Q4 2018
- Establishing initial customer base in Alberta and British Columbia, Canada
- Strong management team includes innovators in the space
- Management holds over 30 percent of shares
CompleTest™ Testing Technology
The CompleTest™ device and its test kits has been designed to provide quick, consistent and accurate results for users across the cannabis supply chain and regulatory environment. Focused on consumer safety, the technology helps provide concise insight into the contents of a given cannabis product.
Through the design of various test kits, which each test for different materials, plus additional testing scenarios, FluroTech has developed seven potential revenue streams that will be deployed to market sequentially, commencing October 2018.
The first revenue stream is a focus on heavy metal testing specifically identifying materials like cadmium, mercury and lead, all dangerous to consumers in small amounts over time.
The second test that will hit the market is designed to measure potency. This will include testing for levels of THC, cannabis’ psychoactive component, and CBD, the plant’s medicinal attribute.
The third test will identify myclobutanil, a fungicide, and aflatoxins, which have been labeled as poisonous carcinogens produced by certain molds in soil and decaying vegetation. This will be followed closely by the fourth revenue stream, testing for pesticides, which the company will advance over the remainder of 2018.
In addition, FluroTech is currently developing roadside testing capability for its device. This would allow law enforcement to easily, effectively test for cannabis use via a simple saliva swab. The company will present this solution to Canada’s Department of Justice for consideration. Roadside testing capability would also open up another market and revenue stream, industrial testing.
The company believes that biomarking of plants will play a significant role in a regulated cannabis industry and will provide for another revenue stream. In this context, licensed producers would biomark their plants to prove they are ‘legal’ allowing regulators and customs enforcement to use FluroTech’s device to test product for those distinct biomarkers.
Danny Dalla-Longa—CEO and Director
Danny Dalla-Longa brings over 35 years of corporate finance and valuation experience. He was a partner at a major international accounting firm for over 18 years. He also served as an MLA, as the energy critic in the Alberta Legislature. Dalla-Longa holds a B Comm. degree in Chartered Business Valuation, is a Certified Business Appraiser and has a Chartered Accountant designation.
Dr. Elmar Prenner—CTO and Director
As Founder and CTO of FluroTech, Dr. Prenner brings over 28 years of expertise in fluorescence spectroscopy. He holds two US patents on antimicrobial peptides and optic filters and has contributed to over 70 peer reviewed publications. He also works as a Professor at the University of Calgary, within the department of Biological Sciences.
Rex H. Kary—COO
Rex H. Kary brings to this venture 38 years of marketing and finance experience with early stage companies. Often his responsibilities included the negotiation and implementation of multi-jurisdictional transactions with long term agreements for the purchase and sale of company’s current and future production.
Gary Jones holds a B Comm. (Hons) and was one of the Managing Partners for a Private Equity firm involved in the Energy Sector. He still serves as a Director for a number of Canadian private companies. Gary has also served as Vice-President, Investment Counsellor for one of Canada’s major Financial Institutions.
Dr. Kirat Singh—Director of Research
Dr. Kirat Singh holds a PhD in physics from the University of Salford, England. He is the inventor of 8 filed patents, focused mainly in optical technology. He conducted the first 2-D simulation of Anti-Resonant Reflecting Optical Waveguides. Dr. Singh is also the recipient of a Marie Curie Fellowship to develop microfluidic technology.
Sid Dutchak is the President of Genstate Development Corp, a private Calgary-based consulting firm. He holds a Bachelor of Laws Degree from the University of Saskatchewan, where he practiced commercial and corporate law for many years. He also served as Minister of Justice and Attorney General in Saskatchewan. In Calgary, Mr. Dutchak served as Director and Executive Officer for several companies listed on the TSX, TSXV and NASDAQ exchanges in sectors including technology, resource development, oilfield services and entertainment.
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