Spotlite360 Technologies Inc (CSE:LITE) (FRA:87A) said it has launched an initiative to offer tailored supply chain tracing and tracking solutions to the pharmaceutical industry, and it is “presently in contract negotiations” with firms.
The logistics technologies developer based in Vancouver and Denver said that its initiative aligns with an impending US regulatory change in the US$1.3 trillion pharmaceutical industry requiring companies to comply with the Drug Supply Chain Security Act (DSCSA), which mandates the implementation of electronic tracing measures.
The company has identified an opportunity to deliver solutions geared towards compliance with the DSCSA using RFID and Internet of Things (IoT) sensors along with blockchain, machine learning, and enterprise tracking software licensed from TrackX Holdings Inc.
READ: Spotlite360 Technologies debuts its shares on the Canadian Securities Exchange
The Drug Quality and Security Act (DQSA) was enacted by Congress on November 27, 2013 and it outlines steps to build an electronic, interoperable system to identify and trace certain prescription drugs as they are distributed in the US. This helps protect consumers from exposure to drugs that may be counterfeit, stolen, contaminated, or otherwise harmful.
Nearly $200 billion worth of counterfeit drugs are sold annually worldwide and pharmaceutical cargo theft amounts to more than $1 billion per year, with the median theft value of $100,000 being far more compared to other industries.
The company said its software-as-a-service (SaaS) solution will be able to “capture real-time and event-driven data”, which can identify inefficiencies and possible hazards. It will also provide proof of origin and reliably authenticated goods.
“Through comprehensive visibility and tracking capabilities, Spotlite360 seeks to create new industry standards with its latest initiative for the pharmaceutical industry,” said the company.
In a statement, Spotlite360 President James Greenwell said: “There are numerous risk factors that make the pharmaceutical supply chain perhaps the most complex of all. Firms are under immense pressure to have oversight of the chain of custody to ascertain the origin and provenance of all ingredients and authentication of the finished product right up to the moment it reaches the patient.”
“Lack of visibility into each step along the supply chain leaves drugs susceptible to fraud through counterfeiting, theft, and damage of all kinds (e.g., puncturing of containers, spoilage from storage at improper temperatures). Moreover, expectations for environmental, social, and governance (ESG) standards of corporations are higher than ever as enterprise technologies become more sophisticated and provide the tools to make sustainable and socially conscious business decisions.”
Separately, the firm said it has issued 700,000 restricted shares units (RSU) to its president as compensation and incentive to drive growth. The RSU plan will come up for approval at the annual general meeting of shareholders on August 30, 2021. An initial 70,000 RSUs will vest on the date of shareholder approval, and the remaining six tranches of 105,000 RSUs per tranche will vest every six months over a period of 36 months from June 15, 2021. The RSUs were priced at C$0.90 based on the closing price of the share on the Canadian Securities Exchange on July 5, 2021.
Meanwhile, Spotlite360 said it has engaged JBN Partners to increase public awareness of the company and its products by coordinating aspects of investor relations and public relations. The services agreement with JBN has a three-month term with a payment value of $50,000. The firm has also engaged Think Ink Marketing Data and Email Services to provide a public relations campaign for a six-month period for a sum of $50,000.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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