FluroTech Ltd. (TSXV:TEST, OTCQB:FLURF), (“FluroTech” or the “Company”) is pleased to provide an update on its ongoing hemp beta tests with hemp growers/extractors in the U.S. and Canada who are validating the Company’s CBDA testing protocol.
These hemp growers have been testing nearly daily, in an effort to profile the CBDA development in their crop. In Canada, a limited number of strains of hemp are available to growers and these strains usually contain CBDA at or below 4.5%. This has resulted in robust demand for a testing device that can quantify low concentrations of CBDA. The hemp growers working with the Company have planted several different strains and have been benchmarking the plants based on their CBDA concentrations. They have also expressed a keen interest in benchmarking CBDA development measured throughout the current growing season against future growing seasons.
As the time to harvest this year’s crop nears, typically commencing mid-September ending mid-October, the CompleTestTM unit should allow farmers to forecast the value of their crop based on the expected CBDA concentrations. Similarly, extractors are inputting the hemp growers’ CBDA concentrations into their models to determine their yield and profitability, thereby validating the hemp prior to purchasing it from such growers. In addition, extractors are able to confirm the efficiency of their extraction process by testing the low-level concentration in the residue plant material following extraction.
“The Company is delighted with the positive response it has received from the hemp beta testers of the CompleTestTM. This testing appears to have validated our proposition that hemp growers will benefit from being able to capture growing data in real time, and being able to use such data to assist them in making better business decisions. I’m thrilled that FluroTech’s development team has put forward a product that appears to meet the needs of both farmers and extractors, by measuring the timing of the initial CBDA expression,” stated Danny Dalla-Longa. “The Company has already made several sales to hemp growers, in time for cropping, and expects the beta testers to also become purchasers of the CompleTestTM.”
According to New Frontier Data, the number of U.S. hemp cultivation licenses increased from 3,546 in 2018 to 16,462 in 2019. To capitalize on this growing market, FluroTech is currently in the process of finalizing a strategy to increase market penetration.
The CompleTest’sTM hemp test measures CBDA concentrations from 0.20% to 15.00% with +/-0.30% accuracy and precision of +/- 0.05% for concentrations below 5% and with accuracy of +/- 1.25% and precision of +/- 0.40%.for concentrations between 5% and 15%.
Additionally, the Company would like to welcome Dave Majeski to the company’s Board of Directors, replacing Dr. Elmar Prenner who has taken on the role of Chief Scientist. Dave is a former Vice President at the Royal Bank of Canada and brings decades of deal making, corporate governance and financial insight to the Board. He is currently on the Board of a privately held cannabis company based out of Edmonton.
FluroTech is a technology and marketing company whose core business is focused on the commercialization of new technologies in the cannabis industry. FluroTech’s proprietary spectroscopy-based technology allows for the testing and identification of organic and inorganic compounds contained within biological samples. Using the technology that was developed at the University of Calgary, FluroTech has developed a two-part solution comprising an instrument called the CompleTest™ and consumable testing kits.
To learn more, visit www.FluroTech.com.
Chief Executive Officer
Alistair Ross Technology Centre
Suite 111, 3553-31 Street NW
Calgary, AB T2L 2K7
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold within the United States or to or for the benefit or account of U.S. persons, absent such registration or an applicable exemption from such registration requirements.
Cautionary Statement Regarding Forward-Looking Information
This news release contains “forward-looking information” within the meaning of Canadian securities legislation. Forward-looking information generally refers to information about an issuer’s business, capital, technology or operations that is prospective in nature, and includes future-oriented financial information about the issuer’s prospective financial performance or financial position. The forward-looking information in this news release includes disclosure about the validation of the Company’s CBDA testing protocol, the demand for a test device to quantify low concentrations of CBDA, the benefits of the Company’s CompleTestTM and the potential demand for and applications thereof, the ability of the CompleTestTM unit to forecast values of crops, validate the hemp and confirm the efficiency of extraction processes, the validation of the Company’s value proposition in respect of its’ CompleTestTM unit, the benefit the Company’s customers and potential customers will receive from CompleTestTM, anticipated future sales of CompleTestTM to beta testers of the product, the ability to increase market penetration, the performance, in terms of accuracy and repeatability of test results of the CompleTestTM, opportunity for fast, affordable, accurate and easy to use test and measurement instruments.
The Company made certain material assumptions, including but not limited to prevailing market conditions and general business, economic, competitive, political and social uncertainties, the need and demand for the CompleTestTM technology in the cannabis and hemp industry, to develop the forward-looking information in this news release. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Actual results may vary from the forward-looking information in this news release due to certain material risk factors. These risk factors include, but are not limited to, adverse market conditions and regulatory and other risks associated with the cannabis and hemp industries in general, users of the Company’s the CompleTest™ failing to achieve the anticipated benefits of the product, competition from other developers of similar technology, failure to reach commercialization of the technology and failure for the products anticipated market to develop. The Company cautions that the foregoing list of material risk factors and assumptions is not exhaustive.
The Company assumes no obligation to update or revise the forward-looking information in this news release, unless it is required to do so under Canadian securities legislation.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.
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