Applied DNA Sciences (APDN) Stock: Climbing On Cannabis News

Applied DNA Sciences Inc (NASDAQ: APDN) is having a great start to the trading session this morning, and for good reason. The company announced that it has entered into a Term Sheet with a cannabis company. Of course, the news excited investors, pushing the stock upward. Today, we’ll talk about:

  • The cannabis-related term sheet;
  • what we’re seeing from the stock; and
  • what we’ll be watching with regard to APDN ahead. 

APDN Announces Cannabis-Related Term Sheet

As mentioned above, Applied DNA Sciences is having an incredibly strong start to the session this morning after announcing a Term Sheet. In a press release issued in the pre-market, the company said that it entered into a non-binding Term Sheet with TheraCann. 

TheraCann is a leading global full-service legal cannabis and hemp consultancy. The Term Sheet, if finalized will prove to be an entrance opportunity for APDN to join the cannabis space. 

The Term Sheet surrounds a long-term exclusive licensing agreement for the use of the company’s proprietary CertainT supply chain integrity platform technology within TheraCann’s ETCH BioTrace seed-to-sale tracking system.  

Of course, the Term Sheet is expected to lead to a definitive agreement. Under the agreement, TheraCann will pay APDN $5.0 million in non-contingent phased payments over a period of six months from the date of the agreement. 

The agreement would also stipulate that Applied DNA would be the exclusive supplier of SigNature molecular tags, molecular tagging application systems and molecular tag authentication systems to TheraCann for use within its ETCH Biotrace system. 

In a statement, Dr. James Hayward, President and CEO at APDN, had the following to offer:

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. 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.

The above statement was followed up by Chris Bolton, COO at TheraCann. Here’s what he had to say:

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.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to APDN, the news proved to be overwhelmingly positive. After all, should the Term Sheet lead to an agreement, the agreement would provide an immediate boost of value for the company and its shareholders. So, it’s not surprising to see that excited investors are pushing the stock up in the market this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:21), APDN is trading at $0.53 per share after a gain of $0.09 per share or 20.45% thus far today. 

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on APDN. In particular, we’re interested in following the story surrounding the company’s work to come to a definitive agreement with TheraCann, bringing its products into the emerging cannabis space. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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