TruTrace Technologies Inc (CSE:TTT) (OTC:TTTSF) released fiscal 2020 results Tuesday revealing revenue boost and a narrowing loss for the cannabis blockchain infrastructure company.
For the 12 months ended April 30, the company brought in revenue of C$402,679, a major increase year-over-year from C$10,000 in fiscal 2019. Its comprehensive loss over the same period was C$4.6 million, down significantly from C$14.8 million in fiscal 2019.
"We are extremely proud of what our team has endured and accomplished in our second full year of operations,” CEO Robert Galarza said in a statement. "Our development of a comprehensive platform for tracking the quality of medical cannabis and the functional implementation into the traceability initiative of Medical Cannabis by Shoppers Drug Mart illustrates that our technology will serve as a cornerstone for verified, transparent and collaborative products within the cannabis sector.”
In June 2019, Shoppers announced the development and implementation of a pilot program that would utilize the company’s StrainSecure platform to provide detailed inventory data as a part of Shoppers’ medical cannabis initiative. The idea was to bring a greater level of transparency and trust to medical practitioners throughout Canada.
All told, the company successfully completed Phase 1 and Phase 2 and has begun Phase 3 of the Pilot Program with Shoppers.
“It has been a pleasure collaborating with some of the top licensed producers and analytical laboratories in Canada, as well as industry leaders like Deloitte Canada and we are excited about what the future has in store for TruTrace,” Galarza said.
In September of that year, TruTrace and Deloitte announced a strategic alliance to deliver blockchain traceability solutions to the cannabis sector.
Recently, the company announced that its TruTrace platform is being utilized as part of a real-world evidence study of medical cannabis.
"The role of TruTrace in a ground-breaking medical cannabis study and its use and implementation by a top tier client base has begun to prove our value to the entire medical community," Galarza said. "It is now time to evolve our platform not only into an industry benchmark in the medical cannabis sector, but as a benchmark for quality in several other key markets."
Going forward, the company's goal is to build a framework for licensed producers and manufacturers and help them track their products throughout the testing process. TruTrace places verified testing data on the blockchain for immutability and intellectual property protection and feeds that information through the ecosystem for full visibility throughout the supply chain.
Cease Trade Order
The company also addressed the cease trade order (CTO), which was imposed after certain company filings were delayed.
“[The CTO] was a result of a misunderstanding that arose regarding the relief granted by the 45-day extension which was provided by Canadian Securities Administrators [due to the pandemic],” TruTrace wrote.
In August, the company which gave it until October 12 to submit its annual filings, However, it did not extend the September 29 deadline to file results for the quarter ended July 31.
“By relying on the temporary relief, management was unable to file the quarterly filings in a timely fashion as they could not be filed prior to the annual filings,” the company said. “Notwithstanding, management assures that it has prepared and will submit its Q1-2020 filings by the end of the day.”
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