TruTrace Technologies Inc (CSE:TTT) (OTCMKTS:TTTSF), the cannabis-focused blockchain group, has struck a software license deal with logistics group OrionOne Global Inc, which will allow it to widen its client base, the firm said.
OrionOne is a global supply chain provider which has developed a logistics and tracking smart-hub for navigating shipments and logistics.
TruTrace said the deal would allow it to leverage the OrionOne platform to support commercialization of its core products for its customers.
It not only assures the long-term functionality of StrainSecure(TM), but "we believe it will open up market opportunities for TruTrace in other key industries", Robert Galarza, CEO of TruTrace, told investors in a statement.
"Our core mission was built on traceability of quality assurance and testing details at a very granular level and we believe the incorporation of logistics tracking will significantly expand our client base."
TruTrace's platform has been designed to power the traceability of testing standards within the legal cannabis, nutraceutical, food and pharma industries.
"Licensing OrionOne will give TruTrace the ability to maximize its commercial opportunities, as well as begin to expand its offering beyond the cannabis industry," Tommy Stephenson, the founder and CEO of OrionOne noted.
He said when the firm developed OrionOne over four years ago it was with a macro view of shipping and logistics, which will complement the precise level of detail provided by TruTrace.
TruTrace will pay OrionOne an initial license fee of C$385,000 through issuing 7.7 million of its shares at a deemed price of C$0.05 each.
The initial term of the license is five years, renewable for a consecutive five years with the license being perpetual in nature.
TruTrace will also pay OrionOne a fee of US$25,000 within 30 days of the closing of Trutrace's next equity financing, or six months from the date of the license deal, whichever comes sooner. It also agreed to pay OrionOne a nominal annual license fee in lieu of royalty payments.
Shares surged in early deals in Toronto to stand at C$0.055 on the day, before droppimng back to C$0.050, up around 11%
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