Applied DNA Signs Term Sheet with TheraCann International for Exclusive License of CertainT Platform in Legal Cannabis and Hemp

Applied DNA Sciences Inc.(NASDAQ:APDN) and TheraCann International Benchmark Corporation (“TheraCann”), a leading global full-service legal cannabis and hemp consultancy, announced today that they have entered into a non-binding Term Sheet (the “Term Sheet”) for a long term exclusive licensing agreement for the use of Applied DNA’s proprietary CertainT® supply chain integrity platform technology within TheraCann’s ETCH BioTrace® seed-to-sale tracking system. The Term Sheet is expected to be followed by a definitive agreement (the “Agreement”).

Upon a signed Agreement TheraCann will pay to Applied DNA $5.0 million in non-contingent phased payments over a period of six (6) months from the date of the signing of the Agreement. In addition, Applied DNA will be the exclusive supplier of SigNature® molecular tags, molecular tag application systems and molecular tag authentication systems to TheraCann for use within TheraCann’s ETCH Biotrace system. The term of the exclusive license to TheraCann is patent term for patented aspects, and 20 years for non-patented components.

“Having initiated our relationship with TheraCann in early 2018 through a funded development agreement and working together to establish a go-to-market strategy and robust joint business development pipeline that includes 12 near-term revenue opportunities, we are very pleased to move closer to formalizing a new phase of our relationship with TheraCann,” said Dr. James Hayward, President and CEO of Applied DNA. “Over the past year, TheraCann has been an incredible business partner, and we look forward to supplying our CertainT platform as an integral component to the ETCH Biotrace system that is capable of true seed-to-sale tracking of legal cannabis, hemp and their derivative products.”

Chris Bolton, COO of TheraCann said, “It is with great pleasure that we have the opportunity to work more closely with Applied DNA and to take ETCH BioTrace to the global market. We believe that ETCH BioTrace will assist global governments, law enforcement, producers, processors and distributors in stabilizing the cannabis supply chain and to assist with both domestic and international import and export.”

Applied DNA cautions investors that the Term Sheet is a preliminary and non-binding document. All terms contemplated in the Term Sheet, including all upfront payments totaling $5.0 million, will only become operative if a definitive agreement is executed. It is possible that no definitive agreement will be reached, or, its terms or conditions may differ from those described above.

Applied DNA also noted that Dr. Hayward will be in attendance at CannaTech Panama on 12 and 13 February, an event hosted by Israel Cannabis (iCAN) and sponsored by TheraCann.