Flora Growth says TruTrace deal will ‘increase our sales opportunities’

Flora Growth Corp (NASDAQ: FLGC) struck a deal with TruTrace Technologies and Applied DNA Sciences on Wednesday to launch a global cannabis product validation and authentication platform for consumers, distributors and government regulators, the Canadian firm said in its press release.

The use of new technologies minimises the risk of counterfeit products

TruTrace’s blockchain-based SaaS software will help Flora track inventory and test product quality. On top of that, Applied DNA’s CertainT platform will use molecular tagging to track cannabis flower and derivatives originating from its Cosechemos cultivation and extraction facility.

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The use of the blockchain-enabled, transparent DNA strain-tracking system, as per Flora, will ensure that global customers from outside of Columbia can rest assured that the products originated directly from Flora’s operations. Consequently, the risk of counterfeit products will be minimized.

Chief revenue officer Jason Warnock’s remarks

Commenting on the news, Flora’s chief revenue officer Jason Warnock said:

“In today’s globalised market, supply chain provenance is becoming an increasingly important component for every major international CPG company. This is particularly true for the cannabis industry, where concerns over the sale and distribution of products from the illicit market persist for businesses. Flora anticipates that the added assurance, efficiency, and transparency brought by these technologies will optimise our value proposition to customers, differentiate us from peers, and increase our sales opportunities.”

Flora distinguishes itself from competitors as it uses organic, low-cost cultivation practices to supply cannabis derivatives. In June, MKM Partners said Flora Growth ‘solves the biggest challenge’ for Canadian LPs. The Nasdaq-listed shares of the $323 million company are down about 5.0% on the intraday chart.