FluroTech Announces 2nd Quarter Financial Results and Provides Outlook
Calgary, Alberta--(Newsfile Corp. - August 29, 2018) - FluroTech Ltd. (TSXV: TEST), ("FluroTech" or the "Company"), today announced results for its second quarter ended June 30, 2018.
- Finalized development and branding of CompleTest™, the Company's flagship quality control cannabis testing device;
- Have completed construction of the CompleTest outer mold;
- Commenced construction of the first 50 CompleTest units;
- Filed initial patents for Completest;
- Completed heavy metal test kits, scope and training module, allowing users of the CompleTest™ to identify and accurately measure lead, cadmium and mercury in their cannabis products up to the parts per billion;
- Successfully completed preliminary development for the Company's seed-to-sale tracking solution which allows labeling of cannabis oil with pharmaceutical grade biomarker technology and identifying it with the CompleTest™;
- Improved future gross margins through the buyback of a 1% royalty on revenue;
- Strengthened the bandwidth and core competency of the Operations and Research and Development teams with new personnel; and
- Capitalized the Company with $8.1 million in equity financings Q1 and completed a public listing on the TSX Venture Exchange.
Outlook for Remainder of 2018
- Launch field testing of CompleTest™ device and heavy metal and cannabinoid test kits with several licensed producers;
- Complete the testing of the biomarker technology on cannabis plants;
- Complete THCa and CBDa scopes, test kits, training modules and third-party validation early September;
- Transition from a development company to commercialization with the CompleTest™ device and test kits with initial sales expected in Q4;
- Expansion of the technical and sales teams to provide scalability;
- Complete development of the external subject testing devices for governments, law enforcement, insurers and employers; and
- Achieve OTCQB listing to allow US investors to purchase FluroTech common shares.
FluroTech's relatively fast pace of development has positioned the Company to focus on achieving sales in 2018. The technology and methodology in the CompleTest™ device and test kits is substantially the same as what is required for the external subject testing devices and the THC, cocaine and methamphetamine test kits which de-risks their development time and likely reduces the time to market.
"Our Business Plan has been, and continues to be, a well-defined progression allowing us to walk before we run. As evidenced by our results, we are on track with that plan. The development team continues to deliver systematic progress and the production and sales departments are slightly ahead of schedule for the launch of commercial sales at the end of October. We feel very comfortable with our positioning on the financial side of the business and will continue to progress on the technological aspects in a manner consistent with our position as a leader in this market space," said Danny Dalla-Longa, Chief Executive Officer of FluroTech.
CompleTest™ is FluroTech's flagship brand and product line. CompleTest™ is a portable, cost-effective, state-of-the-art cannabis testing device, able to provide quick, accurate and consistent testing results. It is designed for cultivators, dispensaries and anyone with a vested interest in consumer safety to test the quality and safety of their cannabis products and to optimize potency yield.
About FluroTech (TSXV: TEST)
FluroTech is a technology and marketing company whose core business is focused on the commercialization of new technologies in the cannabis industry. FluroTech's proprietary spectroscopy-based technology allows for the testing and identification of organic and inorganic compounds contained within biological samples. Using the technology that was developed at the University of Calgary in conjunction with the University of Alberta, FluroTech has developed a two-part solution comprising an instrument called the CompleTest™ and consumable testing kits.
Alistair Ross Technology Centre
Suite 111, 3553-31 Street NW
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Chief Executive Officer
IR — Thesis Capital Inc.
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Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking information generally refers to information about an issuer's business, capital, or operations that is prospective in nature, and includes future-oriented financial information about the issuer's prospective financial performance or financial position. The forward-looking information in this news release includes disclosure about the future performance of the Company.
The Company made certain material assumptions, including but not limited to prevailing market conditions and general business, economic, competitive, political and social uncertainties to develop the forward-looking information in this news release. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Actual results may vary from the forward-looking information in this news release due to certain material risk factors. These risk factors include, but are not limited to, adverse market conditions and regulatory and other risks associated with the medical cannabis industry in general. The Company cautions that the foregoing list of material risk factors and assumptions is not exhaustive.
The Company assumes no obligation to update or revise the forward-looking information in this news release, unless it is required to do so under Canadian securities legislation.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.
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