TruTrace Technologies Announces Second Quarter 2020 Financial and Operating Results

TORONTO, December 20, 2019 – TruTrace Technologies Inc. (CSE: TTT; OTCQB: TTTSF) (“TruTrace” or the “Company“), creator of the first fully-integrated blockchain platform that registers and tracks intellectual property for the cannabis industry, today announced its financial and operating results for the three and six months ended October 31, 2019. All figures are stated in Canadian dollars.

“In the second quarter, we continued to execute on our most important priorities, highlighted by the ongoing implementation of the Shoppers Drug Mart Pilot Program and strategic alliance with Deloitte Canada, as well as the implementation of our platform with several licensed producers in the tracking of their intellectual property in their distribution of medical cannabis,” said TruTrace Technologies CEO Robert Galarza. “We are very excited to become the first traceability platform in this sector to achieve these milestones with such strong partners.”

 

Second Quarter 2020 Financial Highlights

      The Company generated revenue of $303,520 in the second quarter of fiscal 2020, compared to nil in Q2 2019 and $48,000 in Q1 2020. Revenue growth was primarily driven by implementation fees associated with the use of TruTrace technology.

      Net loss and comprehensive loss was $914,652 in the second quarter of 2020, compared to approximately $2.3 million in Q2 2019. The Company reported significantly reduced corporate development, general & administrative, salaries & benefits, and stock-based compensation expense due to efficiency initiatives and the impact of listing expenses related to the Company’s reverse take-over in the prior-year period.

      Loss per share was $0.01 in Q2 2020, compared to a loss of $0.03 in Q2 2019.

      Funds used in operations totaled $707,665 in the quarter, compared to approximately $1.6 million in Q2 2019.

      Cash on hand was approximately $121,000 as at October 31, 2019, compared to approximately $1.2 million at April 30, 2019.

 

Operating Highlights

      Completed Phases 1 and 2 of the Shoppers Drug Mart (“Shoppers”) medical cannabis verification pilot program (the “Pilot Program”), which is intended to increase transparency, interoperability, and product identification within the medical cannabis industry. The Pilot Program uses TruTrace’s StrainSecure™ technology as a central hub for identity management, asset tracking, validation, and product authentication. StrainSecure will also serve as a master registry for standardized testing, product verification and quality assurance.

      Licensed producers (LPs) participating in the Pilot Program include:  Aphria Inc., Aurora Cannabis Inc., The Flowr Corporation, Tilray Canada Ltd., United Greeneries (a subsidiary of Harvest One Cannabis Inc.), WeedMD Inc. and Zenabis Global, Inc.

      The Company added several partners to the StrainSecure ecosystem to contribute to the successful implementation of the platform, including cannabis testing lab Anandia, agricultural technology company Segra International Corp., testing and analytical services company Sigma Analytical, and clinical research and telemedicine platform AdvancedCare.

      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.

      During the second quarter, the Company completed several non-brokered private placement financings of common shares and convertibles debentures, raising total net proceeds of approximately $967,000.

 

Subsequent Events 

      TruTrace and other Pilot Program participants continue to work towards full production and implementation of the Company’s StrainSecure platform, and advancing the Pilot Program beyond its initial scope.

      In November 2019, TruTrace announced that Colombia-based multinational cannabis producer Clever Leaves has joined the StrainSecure platform in order to bring standardization and product validation into its international distribution strategy.

 

Outlook

“The Shoppers Pilot Program has provided a unique opportunity to validate the effectiveness of our StrainSecure platform, with the support of cornerstone clients and partners,” said Robert Galarza. “Demonstrating the functionality and benefits of a new technology under real-world conditions is a vital step on the way to more widespread adoption. We expect to continue to execute on key deliverables in the coming months as the Pilot Program progresses towards full implementation.”

With the launch of its StrainSecure™ platform, TruTrace offers an easily-integrated blockchain solution that tracks cannabis from Genome to Sale™ through the supply chain and provides actionable quality assurance and real-time testing data to the cannabis industry.

The Company’s goal is to build a framework for licensed producers as well as micro cultivators that are entering the newly legalized ecosystem, helping them to easily and inexpensively move their products through testing procedures. TruTrace then places that testing data on the blockchain for immutability and intellectual property protection, and feed that information through the ecosystem for full visibility into the supply chain. The resulting outcome is a trustworthy source of product and inventory data that can be used to support anything from clinical trials to medical efficacy studies, as well as providing regulators, medical practitioners, patients, and even retail consumers a much-desired level of actionable intelligence. With TruTrace, all parties can see whether a product is clean, safe, pesticide-free, and truly is what it claims to be.

 

More detailed financial information and analysis with respect to TruTrace’s results of operations are available in its unaudited financial statements and management’s discussion and analysis for the period ended October 31, 2019, both of which can be found on SEDAR at www.sedar.com.

 

About TruTrace Technologies:

TruTrace Technologies has developed the first integrated blockchain platform to register and track intellectual property in the cannabis industry. TruTrace’s technology allows cannabis growers and breeders to identify and secure rights to their intellectual property. It also streamlines the administrative process and reduces the costs of genetic and mandatory quality-control testing for legal cannabis. TruTrace’s technology is proprietary, immutable and cryptographically secure, thereby establishing an accurate and permanent account for cannabis strains from ownership to market.

 

For More Information:

Robert Galarza, Chief Executive Officer and Director, 844-656-3629. Investor Inquiries: Swapan Kakumanu, Chief Financial Officer, 844-656-3629, swapan@trutrace.co  

 

Disclaimer for Forward-Looking Information

This news release includes forward-looking information within the meaning of Canadian securities legislation, concerning the business of TruTrace, including statements regarding: the intention that the Pilot Program will increase transparency, interoperability, and product identification within the medical cannabis industry; that the addition of several partners to the StrainSecure ecosystem is expected to contribute to the successful implementation of its platform; that full production and implementation of TruTrace’s StrainSecure platform are proceeding;  the expectation that the strategic alliance with Deloitte to lead to additional business development opportunities; and the expectation that demonstrating the functionality and benefits of StrainSecure under real-world conditions will lead to more widespread adoption.

Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that it will prove to be correct and actual results and future events could differ materially from those anticipated in such information. Forward-looking information necessarily involves known and unknown risks, including, without limitation, risks associated with: general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments in Canada, the United States, and elsewhere; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; and other risks beyond the Company’s control. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release. Forward-looking information contained in this news release is provided as of the date of this news release. The Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

TruTrace Technologies to Present at CBD Expo WEST conference in San Diego

TORONTO – TheNewswire – December 5, 2019 – TruTrace Technologies Inc. (CNSX:TTT.CN) (OTC:TTTSF) (“TruTrace” or the “Company“), creator of the first fully-integrated blockchain platform that registers and tracks intellectual property for the cannabis industry, today announced that CEO Robert Galarza will speak at the CBD Expo WEST conference to be held in San Diego, California on December 5-6, 2019.

Mr. Galarza will speak on a panel on Thursday, December 5 titled “IP Freely: Protecting Your Intellectual Property.” The panelists will discuss effective methods for safeguarding intellectual property, in addition to examining why this is such a worthwhile endeavor. In the rapidly-expanding CBD marketplace, it is more important than ever to ensure that valuable ideas are not vulnerable to those looking to take advantage.

“This event is a great opportunity to exchange ideas with manufacturers and other stakeholders participating in the fast-growing CBD space,” said TruTrace Technologies CEO Robert Galarza. “Our StrainSecure traceability platform certainly has benefits for consumers and medical professionals, but equally important is its ability to catalog and protect the intellectual property of the companies developing and selling the products.”

CBD Expo WEST is the finale for the CBD Expo Tour, a series of events designed to bring together formulators across the natural products industry and unite them with the comprehensive knowledge and resources they need to adapt and thrive in the ever-growing cannabinoid realm. The event features more than 75 exhibitors, along with a substantial lineup of speaker presentations, panel discussions, demos and workshops from experts in the research, technology, production, globalization and sale of CBD products. More information is available on the CBD Expo website.

About TruTrace Technologies:

TruTrace Technologies has developed the first integrated blockchain platform to register and track intellectual property in the cannabis industry. TruTrace’s technology allows cannabis growers and breeders to identify and secure rights to their intellectual property. It also streamlines the administrative process and reduces the costs of genetic and mandatory quality-control testing for legal cannabis. TruTrace’s technology is proprietary, immutable and cryptographically secure, thereby establishing an accurate and permanent account for cannabis strains from ownership to market.

For More Information:

Robert Galarza, Chief Executive Officer and Director, 844-656-3629. Investor Inquiries: Swapan Kakumanu, Chief Financial Officer, 844-656-3629, swapan@trutrace.co

Disclaimer for Forward-Looking Information

This news release includes forward-looking information within the meaning of Canadian securities legislation, concerning the business of TruTrace, including statements regarding: the ability of TruTrace Technologies’ platform to benefit consumers and medical professionals and to catalog and protect intellectual property, and the rapid growth of the CDB marketplace. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that it will prove to be correct and actual results and future events could differ materially from those anticipated in such information. Forward-looking information necessarily involves known and unknown risks, including, without limitation, risks associated with: general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments in Canada, the United States, and elsewhere; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; and other risks beyond the Company’s control. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release. Forward-looking information contained in this news release is provided as of the date of this news release. The Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

TruTrace Technologies signs Clever Leaves to Cannabis Validation Testing Program

Toronto – TheNewswire – November 19, 2019 – TruTrace Technologies Inc. (CNSX:TTT.CN) (OTC:TTTSF) (“TruTrace” or the “Company“), creator of the first fully-integrated blockchain platform that registers and tracks intellectual property for the cannabis industryand Clever Leavesa leading vertically-integrated global company and fully licensed producer of pharmaceutical-grade medical cannabis and hemp extracts, announced today that Clever Leaves has joined TruTrace’s StrainSecure(TM) platform to bring standardization and product validation into its international distribution strategy.

The StrainSecure platform allows partner laboratories to collect plant testing data and perform genomic verification in plant batches which are then registered in a blockchain-enabled database for intellectual property protection and strain validation. All information gathered from the plants, including their molecular and chemical makeup, can be tracked via the program.

The StrainSecure(TM) platform will collect, register, manage, track and publish verified testing data of Clever Leaves’ cannabis plant DNA and strains, including prospective shipments into the Canadian market. The platform will enable Clever Leaves to validate its medical cannabis strains and provide its customers with increased transparency about the authenticity, quality and origin of its products.

“Our Genome-to-Sale(TM) software continues to gain traction as industry stakeholders increasingly recognize the critical importance of being able to provide account for the origin and quality of cannabis products,” said TruTrace Technologies CEO Robert Galarza. “Clever Leaves is on track to become a major international supplier, and we are pleased to provide our full support of their initiatives at this early stage of their expected growth.”

“We are committed to establishing full transparency and traceability of our strains. This is especially important for medical cannabis, where clinical outcomes and research conclusions are dependent on a level of consistency that can only come from being able to track a product’s origin; the TruTrace platform is uniquely capable of providing this assurance,” said Andres Fajardo, President of Clever Leaves. “We look forward to working with TruTrace and Shoppers Drug Mart on this initiative as we pursue our goal of becoming the largest medical cannabis company in the world.” In February 2019, Clever Leaves became the first company authorized by Health Canada to import cannabis from Colombia into Canada.

About TruTrace Technologies:

TruTrace Technologies has developed the first integrated blockchain platform to register and track intellectual property in the cannabis industry. TruTrace’s technology allows cannabis growers and breeders to identify and secure rights to their intellectual property. It also streamlines the administrative process and reduces the costs of genetic and mandatory quality-control testing for legal cannabis. TruTrace’s technology is proprietary, immutable and cryptographically secure, thereby establishing an accurate and permanent account for cannabis strains from ownership to market.

About Clever Leaves:

Clever Leaves is a multi-national cannabis company operating in compliance with federal and state laws, with an emphasis on ecologically sustainable, large-scale cultivation and processing as the cornerstone of building out distribution and brands. Clever Leaves is a leading vertically integrated producer of medical cannabis and hemp extracts and is currently cultivating over 1.5 million square feet of greenhouses under Good Agricultural and Collection Practices (GACP) in Colombia, with expected expansion to 2.3 million square feet by the end of 2019 and the goal of reaching 10 million square feet by 2021. Clever Leaves obtained its Good Manufacturing Practices (GMP) certification from INVIMA, Colombia’s food and drug regulatory agency, after inspection of its top-of-the-line extraction facility and is in the process of being certified with European Good Manufacturing Practices (EU GMP). Clever Leaves’ first extraction facility is capable of extracting 24,000 kilograms of dried flower currently, with expansion underway to increase expected extraction capacity to 324,000 kilograms of dried flower per year by mid-2020. Clever Leaves is also expanding its cultivation and extraction capabilities to Portugal, where it currently owns over 9 million square feet of property with over 100,000 square feet of greenhouses and anticipates its first harvests in 2020. With offices in Canada, Colombia, Germany, Portugal, the United Kingdom and the United States, Clever Leaves is one of the world’s largest hemp and medical cannabis producers.

For More Information:

Swapan Kakumanu

Chief Financial Officer, TruTrace Technologies

844-656-3629

swapan@trutrace.co

Diana Siguenza

Strategic Communications Director

+57 310-236-8830

diana.siguenza@cleverleaves.com

www.cleverleaves.com

Press contacts:

McKenna Miller

KCSA Strategic Communications

347.487.6197

Cleverleaves@kcsa.com

Disclaimer for Forward-Looking Information

This news release includes forward-looking information within the meaning of Canadian securities legislation, concerning the business of TruTrace, including statements regarding: the ability of the StrainSecure platform to bring standardization and product validation into Clever Leaves’ international distribution strategy; that the StrainSecure tm platform will collect, register, manage, track and publish verified testing data of Clever Leaves’ cannabis plant DNA and strains, including prospective shipments into the Canadian market; the ability of the StrainSecure platform to enable Clever Leaves to validate its medical cannabis strains and provide its customers with increased transparency about the authenticity, quality and origin of its products; that TruTrace’s Genome-to-Sale(TM) software continues to gain traction as industry stakeholders increasingly recognize the critical importance of being able to provide account for the origin and quality of cannabis products; Clever Leaves’ success in becoming a major international supplier and its expected growth; Clever Leaves’ goal of becoming the largest medical cannabis company in the world; Clever Leaves’ expected expansion to 2.3 million square feet by the end of 2019 and the goal of reaching 10 million square feet by 2021; Clever Leaves’ planned expansion to increase its extraction capacity to 324,000 kilograms of dried flower annually by early next year; and Clever Leaves’ anticipated first harvests in 2020. Although the Company believes that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because the Company can give no assurance that it will prove to be correct and actual results and future events could differ materially from those anticipated in such information. Forward-looking information necessarily involves known and unknown risks, including, without limitation, risks associated with: general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments in Canada, the United States, and elsewhere; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; and other risks beyond the Company’s control. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties and other factors, many of which are beyond the control of the Company. Readers are cautioned not to place undue reliance on any forward-looking information contained in this news release. Forward-looking information contained in this news release is provided as of the date of this news release. The Company disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.