(TheNewswire)
Toronto, Canada - TheNewswire - October 13, 20 20 - TruTrace Technologies Inc. (CSE:TTT ) ; (CNSX:TTT.CN); ( OTC:TTTSF) (" TruTrace " or the" Company "), www.trutrace.co , creator of a fully integrated software platform,secured on a blockchain infrastructure that gives clients the abilityto store, manage, share and immediately access quality assurance andtesting details, as well as motion and movement intelligence oninventory , announces its financial results forthe quarter ended January 31, 2020 and for the year ended April 30,2020 (the "Annual Filings"). All figures are stated inCanadian dollars.
Management would like to address the recent Cease Trade Order whichwas a result of a misunderstanding that arose regarding the reliefgranted by the 45-day extension which was provided by CanadianSecurities Administrators and Ontario Instrument 51-502: TemporaryExemption for Certain Corporate Finance Requirements (the"Temporary Relief"). On August 28, 2020, the Companyannounced that it was relying on the Temporary Relief from periodicfilings normally required to be made by issuers due to the challengesposed by the COVID-19 pandemic, thereby effectively giving the Companyuntil October 12, 2020 to complete its Annual Filings. Unfortunately,the Temporary Relief did not provide any relief from the September 29,2020 deadline to file financial results for the three months endingJuly 31, 2021 (the "Quarterly Filings"). By relying on theTemporary Relief, management was unable to file the Quarterly Filingsin a timely fashion as they could not be filed prior to the AnnualFilings. Notwithstanding, management assures that it has prepared andwill submit its Q1-2020 filings by the end of the day.
"We are extremely proud of what our team has endured andaccomplished in our second full year of operations", saidTruTrace Technologies CEO Robert Galarza. "Our development of acomprehensive platform for tracking the quality of medical cannabisand the functional implementation into the traceability initiative ofMedical Cannabis by Shoppers Drug Mart illustrates that our technologywill serve as a cornerstone for verified, transparent andcollaborative products within the cannabis sector. It has been apleasure collaborating with some of the top Licensed Producers andanalytical laboratories in Canada, as well as industry leaders likeDeloitte Canada and we are excited about what the future has in storefor TruTrace."
Financial Highlights
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- The Company generated revenue of $402,679 in fiscal2020, compared to $10,000 in fiscal 2019.
- Comprehensive loss was $4.59 million for the year,compared to $14.8 million in the prior period. Significant fiscal 2020operating expenses included $2.07 million of product developmentcosts, $814,485 in salaries, subcontractors and benefits and $762,554of corporate development costs.
- Net comprehensive loss was $4.5 million in fiscal2020, compared to $14.8 million in the prior period. The variance ascompared to the prior period was due to a reduction in operationalexpenses and development costs and a significant increase in revenue.
- Funds used in operations totaled $4 million for theyear, compared to $9 million in the prior period.
Fiscal 2020 OperatingHighlights
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- In June 2019, Canada's largest pharmacy chain,Shoppers Drug Mart ("Shoppers") announced the developmentand implementation of a Pilot Program with TruTrace which wouldutilize the Company's proprietary StrainSecure(TM) platform in orderto provide detailed inventory data to Shoppers as a part oftheir Medical Cannabis initiative thereby bringing a greater level oftransparency and trust to medical practitioners throughout Canada.Thereafter, the Company successfully completed Phase 1 and Phase 2,and began Phase 3 of the Pilot Program with Shoppers.
- In September 2019, TruTrace and global leader Deloitte announced astrategic alliance to deliver blockchain product traceabilitysolutions to the cannabis industry. Deloitte has been a leading voicein cannabis intelligence and research and has advised and consultedclients at every level of the cannabis supply chain. TruTrace andDeloitte are actively working on several exciting initiatives.
- The Company began working with several analyticaltesting laboratories, including: Anandia Laboratories, A&L CanadaLaboratories, Inc., Molecular Science Corp. and Sigma Analytical withthe goal of delivering greater transparency and visibilityregarding the quality of products offered in the legal cannabisindustry.
- In conjunction with the Shoppers Drug Mart Pilot Program, theCompany entered into agreements with several Licensed Cultivators ofmedical and recreational cannabis who agreed to employ theStrainSecure(TM) platform in order to collect, register, manage, trackand publish verified testing data of their products, including: Aphria, Inc., Tilray Canada, Inc., WeedMD Inc. and Aurora Cannabis.
- Internationally, the Company entered into an agreement withColumbia-based Clever Leaves, a leading vertically integrated globalcompany and fully licensed producer of pharmaceutical-grade medicalcannabis and hemp extracts with an aim to explore ways to employ theStrainSecure(TM) platform throughout Clever Leaves' internationaloperations.
- The Company added key talent to its advisory board with the additionof regulatory and industry expert Deepak Anand, as well as theaddition of experienced entrepreneur Cesare Fazari to its Board ofDirectors.
Subsequent Events
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- In June 2020, the Company successfully negotiated a debt settlementwith its primary development vendor in exchange for common shares ofTruTrace thereby ensuring valuable intellectual property rights to theStrainSecure(TM) platform and securing its lead technology partner forfuture development.
- In July 2020, the Company entered into a software license agreementwith OrionOne Global, Inc., a global supply chain technology solution,which would not only ensure the long-term functionality of theStrainSecure(TM) and TruTrace Enterprise(TM) systems but should alsoopen up several market opportunities for TruTrace in other keyindustries.
- In July, 2020, University Health Network (UHN), a leading healthresearch organization announced the launch of a first-of-its-kindReal-World Evidence study led by Dr. Hance Clarke, Director of PainServices, Toronto General Hospital, and a recognized leader ineducating Canadians about chronic pain management and the risk factorsof continued opioid use. The study is in collaboration with MedicalCannabis by Shoppers and supported by the Company's StrainSecure(TM)platform. By utilizing TruTrace, the study will be able to tiebatch/lot specific product data to individual patient use.
- The Company announced the inclusion of several additional LicensedProducers within the Real-World Evidence study in alignment with UHNand Shoppers including: MediPharm Labs Inc., Organigram Holdings,Inc., and Avicanna, Inc. amongst others.
- In August 2020, the Company began showcasing its capabilities wellbeyond the cannabis sector by announcing implementation of theCompany's proprietary software by Riviera and West One Logisticsregarding the delivery of quality sanitization products, as well asSafe Company in their mission to ensure the quality of medical andprotective consumables, hospital supplies and air purificationsolutions.
Outlook
"The role of TruTrace in a ground-breaking medical cannabis studyand its use and implementation by a top tier client base has begun toprove our value to the entire medical community," said RobertGalarza. "It is now time to evolve our platform not only into anindustry benchmark in the medical cannabis sector, but as a benchmarkfor quality in several other key markets."
The Company's goal is to build a framework for licensedproducers and manufacturers, helping them to easily and inexpensivelytrack their products throughout the testing process. TruTrace thenplaces verified testing data on the blockchain for immutability andintellectual property protection and feeds that information throughthe ecosystem for full visibility throughout the supply chain. Theresulting outcome is a trustworthy source of product and inventorydata that can be used to support anything from clinical trials tomedical efficacy studies, as well as providing regulators, medicalpractitioners, patients and even retail consumers a much-desired levelof actionable intelligence. With TruTrace, all parties can see whethera product is clean, safe, pesticide-free and truly is what it claimsto be.
More detailed financial information and analysis with respect toTruTrace's results of operations are available in its auditedfinancial statements and management's discussion and analysis for theperiod ended April 30, 2020, both of which can be found on SEDAR at www.sedar.com .
About TruTrace Technologies www.trutrace.co :
TruTrace Technologies is the developer of a fullyintegrated software platform, secured on the blockchain, offeringclients the ability to store, manage, share and immediately accessquality assurance and testing details, COAs, as well as motion andmovement intelligence on inventory. The platform was specificallydesigned to power the traceability of testing standards within thelegal cannabis, nutraceutical, food and pharmaceutical space with afocus on the authentication of source materials or ingredients used informulation.
For More Information:
Robert Galarza, CEO
Tel: 888-775-4888
Email: info @trutrace.co
Twitter: @TruTraceTech
LinkedIn: @trutracetech
Facebook: https://www.facebook.com/TruTrace/
Instagram: @trutracetechnologies
Disclaimer for Forward-LookingInformation
This news release includes forward-looking information within themeaning of Canadian securities legislation, concerning the business ofTruTrace, including statements regarding: the current economic climateand its effect on the Company's client base business; that theCompany's technology will serve as a cornerstone for verified,transparent and collaborative products within the cannabis sector;that the software license agreement with OrionOne Global, Inc. shouldalso open up several market opportunities for TruTrace in other keyindustries; the Company's ability to successfully acquire newcustomers; the Company's ability to successfully implement itstechnology, specifically the StrainSecure(TM) and TruTraceEnterprise(TM) Software as a Service (SaaS) solutions; management'sassumptions regarding the sustainability of recurring revenue streams;that our technology will play an instrumental role in empoweringmanufacturers, licensed producers, medical practitioners, regulatorsand consumers with information regarding the quality of products intheir respective market; the Pilot Program is intendedto increase transparency, interoperability and product identificationwithin the medical cannabis industry; the Pilot Program will use theCompany's StrainSecure(TM) technology as a central hub for identitymanagement, asset tracking, validation, and productauthentication; StrainSecure(TM) will also serveas a master registry for standardized testing, product verification,and quality assurance ; other LPs are expected tobe announced as participants in the Pilot Program; that a number of prospective partners are expected tocontribute to the successful implementation of the Company'stechnology; the Company's expectation that the Pilot Programwill enable it to demonstrate the value of its technology platform toa broad cross-section of the industry; and the Company's expectedprofitability. Although the Company believes that the expectations andassumptions on which such forward-looking information is based arereasonable, undue reliance should not be placed on the forward-lookinginformation because the Company can give no assurance that it willprove to be correct and actual results and future events could differmaterially from those anticipated in such information. Forward-lookinginformation necessarily involves known and unknown risks, including,without limitation, risks associated with: general economicconditions; adverse industry events; loss of markets; futurelegislative and regulatory developments in Canada, the United States,and elsewhere; inability to access sufficient capital from internaland external sources, and/or inability to access sufficient capital onfavourable terms; and other risks beyond the Company's control. Eventsor circumstances may cause actual results to differ materially fromthose predicted, as a result of numerous known and unknown risks,uncertainties and other factors, many of which are beyond the controlof the Company. Readers are cautioned not to place undue reliance onany forward-looking information contained in this news release.Forward-looking information contained in this news release is providedas of the date of this news release. The Company disclaims any intentor obligation to update publicly any forward-looking information,whether as a result of new information, future events or results orotherwise, other than as required by applicable securities laws.
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