Global Cannabis Applications (APP.C) inked a three year software licensing deal with Malta-based medical weed cultivator, Herb Industries today, according to a press release.
More specifically, the company is licensing their Citizen Green Efixii blockchain-based platform to take care of Herb’s cannabis compliance in a bid to raise consumer transparency. Herb’s proprietary methodology takes care of all the production lifecycles from genetics, nursery, to onsite ISO laboratory and extraction. The software-as-a-service deal will help smooth any wrinkles in the cultivation process as they scale.
“44M grams in 2022 and 66M grams every year thereafter is an absolutely massive revenue opportunity for us on a per gram basis. And, just as important is knowing that tens of thousands of EU consumers trust Efixii’s QR-codes to give them, and their families, comfort knowing what they are ingesting is the safest and best product for them, thereby cementing our efficacy commitment of better outcomes for all medical cannabis patients,” said Brad Moore, GCAC’s CEO.
This deal makes sense for a growing company like Herb Industries in a regulation heavy like the medical cannabis market. Outsourcing the record-keeping for each strain is sensible if you’re looking to maximize consumer transparency. It’s the ability to answer any claim about a strain’s authenticity by accessing the blockchain-enabled Citizen Green platform and noting the step by step process leading back from sale to seed. That’s one of the services GCAC offers. They design, develop and market data technologies for the medical cannabis markets.
The Citizen Green platform is an end-to-end platform connecting patient to regulator that makes use of six core technologies: mobile applications, artificial intelligence, regtech, smart databases, blockchain and smart rewards to help connect qualified candidates to clinical studies.
The platform helps skip the regulatory hassle associated with cross-border travel as cannabis lifecycle steps can be found, scanned and ready on the GCAC Efixii QR-code by customers officials, regulators and the like, to determine authenticity. It comes with a one-time configuration fee of USD$12,500, with $50 per registered employee per month for know-your-customer and anti-money laundering protocols, as well as an $75 per cannabis batch export fee. AS well as another $75 consumer efficacy-qr-code fee per product. In total, these fees pull in CAD$.20 per gram with a potential yield of CAD$.18 per gram in future data sales.
The European market is the largest in the world, and anticipated to grow at a compound annual growth rate o f67.4%, with a market value of €3.2 billion by 2025. Most of the growth is coming from the consumer demand for CBD and development of medical cannabis regulations. The bigger something gets, the more difficult it can be to keep effective tabs on and that’s where technologies like GCAC’s come in handy. Consumer confidence is tied to authenticity, and Herb’s use of the Efixii compliance platform guarantees it by enabling growers’ staff to record all positive and negative events in the cannabis lifecycle, and all the steps, from mother plant, lab testing, shipment, processing and customs.
APP is up three cents today and presently trading at $0.26.
—Joseph Morton
