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TruTrace Technologies clocks first revenue after Shoppers Drug Mart pilot program in fiscal 1Q

Companies have lined up to use TruTrace’s StrainSecure technology to track strains of medical cannabis and verify their authenticity

TruTrace Technologies clocks first revenue after Shoppers Drug Mart pilot program in fiscal 1Q
The company said revenue was primarily driven by service fees associated with the use of TruTrace technology

TruTrace Technologies Inc (CSE:TTT) (OTCMKTS:TTTSF), the medical cannabis verification company, clocked revenue for the first time in the fiscal first quarter after a milestone deal with Shopper Drug Mart, to see a pilot program use TruTrace's StrainSecure technology as a central hub for identity management, asset tracking, validation, and product authentication.

For the three months ended July 31, the Vancouver-based firm posted revenue of $48,000, compared to nothing in the same quarter a year ago. Revenue was primarily driven by service fees associated with the use of TruTrace technology, said the company.

In a statement accompanying the Canadian technology company’s latest numbers, TruTrace Technologies CEO Robert Galarza said: "The launch of the Shoppers Drug Mart Pilot Program for medical cannabis verification was a very significant milestone for us in the first quarter.”  

READ: TruTrace Technologies protects intellectual property to send counterfeiters packing

"This has provided us with a unique opportunity to demonstrate the effectiveness of our technology to several of Canada's leading licensed producers and other key industry participants. We intend on becoming an indispensable part of the solution to bring the highest standards of transparency and accountability to the cannabis sector," he added.

TruTrace Technologies has developed the first blockchain-secured platform to track intellectual property for cannabis. The company provides DNA-based cannabis product validation and helps with intellectual property protection and product guarantees for patients and customers.

In a nutshell, TruTrace combines the power of big data with the security of blockchain to provide strain identification, registration and verification for cannabis at scale.

The company expects momentum to continue into the second half of the year, driven by its medical cannabis pilot program with national Canadian pharmacy chain Shoppers Drug Mart.

TruTrace’s seed-to-sale tracking tackles two pain points in the cannabis industry: it modernizes the inventory tracking system and provides customers with details about a product’s lab test results and cultivar.

As a result, TruTrace is working with at least ten major producers, which include Harvest One Cannabis, WeedMD Inc, Aphria Inc, Aurora Cannabis Inc, The Flowr Corporation, Tilray Canada Ltd, United Greeneries, and Zenabis Global Inc.  

Well-known medical cannabis producer WeedMD is a big believer. The Ontario-based company saw 40 of its cannabis strains undergo validation as part of the first phase of its pilot program with TruTrace.

Clearly, things are moving in the right direction as the company’s net loss in the fiscal first quarter shrunk to $1.7 million, compared to $9 million in the same period a year earlier. 

Positive outlook

"We expect that the relationships we are establishing through the implementation of the StrainSecure platform in the Pilot Program will form the cornerstone of our continued growth," said Galarza.

Licensed producers are using TruTrace, in part to assure stakeholders that the medical cannabis industry is serious about offering a verified, standardized cannabis treatment option. The firm’s immutable, cryptographically secure technology is also seeing momentum in South America and the US as well.

"Our technology is being validated through a large-scale proof of concept. This enables us both to demonstrate the value of our offering to industry participants, and to advance our technology in response to their input,” said Galarza.

“Prospective customers in Canada and internationally have been tracking our progress and are showing strong interest for our company," he added.

As adoption grows with each new user, TruTrace further stakes its claim as a technology game-changer for the cannabis industry

In August and September 2019, TruTrace announced the closing of the first two tranches of a private placement raising proceeds of roughly $720,000. 

In September 2019, Deloitte and TruTrace announced a strategic alliance to deliver blockchain product-traceability solutions to the cannabis industry. The company expects the strategic alliance to lead to additional business development opportunities.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

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