Global Cannabis Applications (APP.C) inked a three-year software licensing deal with Israeli-based medical cannabis cultivator, Bless Cultivation, today, according to a press release.
Global isn’t actually a cannabis company. Let’s get that out of the way first. Instead, they’re a licensed tech company, offering a software-as-a-service (SaaS) package that allows growers’ staff to record all events for medical cannabis cultivation, including lab tests, shipment and customers controls and mother plant. The Citizen Green blockchain technology keeps the integrity of a grower’s data intact for both regulators and consumers.
“Now that our cannabis track and trace software is in production, I’m really looking forward to working with medical cannabis cultivators around the world, especially in Israel and here at home in Canada. Our financial model is that as our cultivator’s business grows, then our Cultivator SaaS revenues grow too. Added to this, I expect a significant network-effect with our SaaS approach, since all distributors downstream from our cultivators may also want contribute to a consumers cannabis lifecycle story by licensing our service,” said Brad Moore, CEO of Global Cannabis Applications.
Bless can use Citizen Green to track and trace its 350,000 grams of cannabis per year throughout its Ramat Ha’golan facility. The software license is structured into four distinct parts:
- One-time payment of US$12,500 to configure the Bless cultivator inside Citizen Green
- Recurring monthly SaaS fee of US$499
- A recurring fee of US$75 per medical cannabis shipment and or product that Bless requires formal blockchain attestations for regulatory or export and customs compliance
- A recurring fee of USD$50 per registered users per month for on going KYC/AML compliance checks.
Global Cannabis has the ambitious goal of getting its QR code on every package sold in Canada. For perspective, as of May 2020, 7,840,577 packaged units of cannabis have been sold in Canada for both medical and non-medical purposes. The QR code would let cannabis consumers in on the origin of their cannabis, along with covering its long chain of custody history.
According to Nadav Segal, Bless founder and vice president of research and development:.
“We selected Citizen Green because it is the only viable technology we tested that can demonstrate that our products are regulatory complaint. We’re using its compliance lifecycle storytelling to deliver product-transparency to customs officials, distributors and consumers alike. I fully expect Citizen Green to speed up our seed-to-sale cycles, increase consumer confidence in our products and to lower our compliance costs.”
The company knows that the first step is to attract all cannabis participants to what Citizen Green offers, and the networking effect of bringing together laboratories and distributors has the potential to drive considerable revenue for Citizen Green.