GrowBLOX Sciences, Inc., a biopharmaceutical research and development company with state-of-the-art technologies in plant biology and cultivation, which are designed to produce consistent medicinal cannabis, has signed an agreement to license certain of its proprietary TissueBLOX technology to an unaffiliated licensed cannabis testing company. The licensed technology consists of certain equipment, procedures, and know-how related to the seedless propagation of genetically-identified strains of cannabis. The technology will enable the licensee to offer as a service to third-party growers the ability to grow specific strains of cannabis with an unprecedented level of reliability, precision, and most importantly, consistency of genetic material. As a practical matter what this means is that any grower, having developed and tested a strain of cannabis with certain characteristics desired by the grower, can provide for the continuous and consistent production of the genetics for that strain, enabling it to be branded as either a recreational or medicinal product.
The TissueBLOX technology enables propagation of genetically consistent strains by means of growth from direct tissue cultures, as opposed to cloning or the planting of seeds. Dr. Ulrich Reimann-Philipp, Botanist and Cultivation Manager at GB Sciences said, “We have tissue culture technology that enables scalable production of cannabis strains with a genetic consistency not available by any other means. Cultivators who seek to brand a product, regardless of the characteristics or intended purposes of that product, can now genetically identify, isolate, and reproduce that strain efficiently and cost-effectively. We believe that this branding is a natural progression in the development of the newly emerging cannabis business, and will enable consumers to better select whatever it is they may seek from the product.” Dr. Reimann-Philipp continued, “Of course, in order to provide consistency, growing conditions need to be standardized and strictly controlled as well. Our TissueBLOX system optimizes the ‘nature’ part of the equation, but growers will still need to provide consistency in the equally important ‘nurture’ part of the process.”
The agreement provides for nonrefundable advance royalty payments, which have been received in the last 60 days, against a continued stream of revenue resulting from the sale of the service by the licensee to third parties. Management believes that, in addition to the other revenue streams available to it from its growing activities and the development of its own proprietary strains, the ability to license its substantial suite of proprietary technologies will produce ongoing revenue as a separate business line for many years to come, and will help to take a fledgling industry to a more mature, and thus consumer friendly, place.