STONY BROOK, N.Y.--(BUSINESS WIRE)--Applied DNA Sciences Inc. (NASDAQ: APDN) (“Applied DNA” or the “Company”), a leader in PCR-based (Polymerase Chain Reaction) DNA manufacturing for product authenticity and traceability solutions, today announced that the Company and TheraCann International Benchmark Corporation (“TheraCann”) have signed a non-binding term sheet (the “Term Sheet”) outlining agreed-upon amendments to the exclusive licensing and cooperation agreement signed March 28, 2019 between the parties (the “Agreement”). The Term Sheet is expected to be followed by definitive contractual amendments.
Under the Term Sheet, the parties agreed to amend the Agreement to provide Applied DNA with $4M in TheraCann convertible preferred stock and a $1M convertible promissory note in exchange for Applied DNA’s waiver of $4M in cash payments due from TheraCann on or before August 15, 2019. Recognition of $4 million in revenue by Applied DNA (unaudited) will take effect with the signing of the definitive agreement(s), expected in the current quarter.
“The contractual amendments will be mutually beneficial and is a testimony to the strength of our relationship with TheraCann,” stated Dr. James Hayward, president and CEO of Applied DNA. “The amendments will strengthen the Applied DNA balance sheet as well as increase Shareholder Equity as we enter the Nasdaq delisting appeals process, and at the same time, allow TheraCann to remain in compliance with the terms of Agreement as it pursues listing on the TSX Venture Exchange.”
“Our commercial opportunities are steadily strengthening and combined with the contractual amendments will enable our rapid growth for our current and future shareholders,” said Jason Warnock, CEO of TheraCann.
Applied DNA notes that the Term Sheet is a preliminary and non-binding document. All terms contemplated therein will only become operative if definitive contractual amendments are signed. It is possible that no definitive contractual amendments will be reached, or, the amendments may differ from those described above.
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.
Common stock listed on NASDAQ under the symbol APDN, and warrants are listed under the symbol APDNW.
Founded in 2004, TheraCann International Benchmark Corporation offers a one-stop, full-service solution for the International cannabis marketplace. TheraCann provides business, technology and industry experts who apply advanced technology and help clients design, build and run their cannabis businesses. Integrating nearly 3.5 million square feet of cannabis operations and the successful launch of groundbreaking Enterprise Resource Planning (ERP) software, Aeroponic cultivation systems and patented genetic tracking and diversion prevention systems, TheraCann provides cannabis-related businesses with solutions to fit their regulatory requirements.
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 ability to repay the Notes if not converted, history of net losses, limited financial resources, limited market acceptance, ability to maintain its NASDAQ listing, 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 reports on Form 10-Q filed on February 7, 2019 and May 9, 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.