Canada taps Dotz Nano to fight cannabis counterfeiting
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Special Report: A Canadian cannabis company has called upon Dotz Nano’s expertise in order to prevent illegal cannabis in the country.
Advanced tech company Dotz Nano (ASX:DTZ) has announced a partnership with Slalom Capital, a private Canadian company commercialising cannabis-related solutions.
Slalom will pay Dotz $296,000 to develop its BioDotz anti-counterfeit track-and-trace solution specifically for cannabis plants.
Slalom will then be tasked with selling BioDotz in Canada, with an annual wholesale target set to deliver at least $370,000 in income for Dotz.
Another bonus for Dotz is that if Slalom undertakes an IPO, Dotz will be entitled to 20 per cent of the equity offered.
Dotz CEO Uzi Breier told Stockhead the deal was validation of his company’s technology in an industry that was crying out for solutions.
“We are the only material security marker that is able to penetrate into the substance itself, right down to the molecule,” he said.
“This can’t be reverse engineered, it is eco-friendly, and we also have a line of detectors, so we can provide the Canadian cannabis industry both the lock and the key.
“The industry in Canada is booming and cannabis companies are looking for solutions to ensure their products aren’t intermixed with illegal or fraudulent products.”
Canada is the largest country in the world to have legalised medicinal and recreational cannabis, with the market set to grow at a compound annual growth rate of 44.4 percent to nearly US$5.2 billion ($7.6 billion) by 2024.
Dotz’s technology is in increasing demand, following a recent in-house proof of concept study on plants with a close biological structure to cannabis, relevant patent submission and the recent collaboration agreement with Israeli medicinal cannabis producer Seàch Medical.
Sukhmohan Athwal, managing partner at Slalom, said the company was proud to be leading the pack in securing the supply chain of Canadian cannabis.
“We are excited to be partnering with Dotz to help finalise BioDotz for cannabis and be their exclusive distributor in Canada,” he said.
“The Canadian cannabis market is due for prodigious growth as it increases the number of licenced growers of both medicinal and recreational products, improves the retail location network, addresses supply issues and provides a better selection of non-flower products as the legitimate growing market takes hold.
“To protect their market share growers will be very keen to ensure they can protect their brands throughout their supply chain.”