FluroTech Ltd. is exploring strategic alternatives for its Cannabis and Hemp testing business. While the Company’s Completest® system has proven beneficial to companies operating with the cannabis and hemp sector, many entities operating in that sector have been severely impacted by the pandemic. This has resulted in the scaling back or shutting down of a significant number of production facilities, resulting in a decreased market for FluroTech’s product. Management believes this strategic shift from cannabis and hemp testing will allow it to focus its resources toward the commercialization of its pandemic defense system through its investment in FluroTest Systems Ltd. (“FluroTest”).
As has been previously announced, the Company currently has an approximately 25% interest in FluroTest, and has entered into a Letter of Intent with a majority of the other FluroTest shareholders in respect of a transaction that, if completed, would result in the Company acquiring up to 95% of FluroTest in Q1 2021. The pandemic defense system is realizing high demand and management believes the current pandemic is triggering a fundamental change from central laboratory testing model to point of care testing as well as the way large corporations and countries manage the risk of future pandemics.
As part of the restructuring Rex H. Kary has resigned as the Company’s Chief Operating Officer effective as of December 16, 2020. Mr. Kary will continue in a consulting capacity, leading the Company’s exploration of strategic alternatives for its Cannabis and Hemp testing business, which will enable him to focus his time and energy in this area for the benefit of the Company and its shareholders.
“Rex has played a critical leadership role in the development of the CompleTest® system, setting the standard for in-house testing in the Cannabis and Hemp industry. Our Board of Directors is highly confident in Rex’s ability to lead this exploration of strategic alternatives,” said Danny Dalla-Longa, Chief Executive Officer of FluroTech. “This initiative will focus Company’s resources and attention on the development of the FluroTest’s pandemic defense system and its efforts to achieve U.S. FDA’s Emergency Use Authorization as well as Health Canada approval.”
Readers are cautioned that, although FluroTest has achieved proof of concept prototype, the testing method and device is still in the early stages of research and development and accordingly FluroTest is not currently making any express or implied claims that the technology can, or will be able to, accurately detect the COVID-19 virus. The Platform is currently pending FDA approval. In addition, FluroTest requires additional capital in the near-term to further the development and deployment of its testing device and will be seeking equity investors and is exploring strategic partnerships in connection with the same.
FluroTech LTD is advancing the science of fluorescence spectroscopy to solve unique problems and bring new, low-cost solutions to market, improving lives and making products safer in many ways. Our patented fluorescence spectroscopy technology enables the commercialization of low-cost solutions where highly sensitive and accurate affordable results are required but generally have not been economically feasible. To learn more, visit FluroTech.com