FluroTech Announces Exploration of Strategic Options for Cannabis Testing Business to Focus on Pandemic Defense System
CALGARY, Alberta, Dec. 18, 2020 (GLOBE NEWSWIRE) — FluroTech Ltd. (TSXV: TEST) (OTCQB: FLURF), (“FluroTech” or “the Company”) 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,” stated 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.About FluroTech (TSXV: TEST) (OTCQB: FLURF)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.comAbout FluroTest Systems Ltd.Unlike firms developing individual tests for the detection of SARS-CoV2, FluroTest is developing a complete system for surge-scale testing of viruses and other pathogens to be deployed in environments where significant numbers of people need to be tested rapidly and frequently. By combining and leveraging the disciplines of robotics automation, biochemistry (antibody labeling and binding), fluorescence detection and cloud computing, FluroTest believes it is creating the first pandemic defense platform of its kind.FluroTest is seeking additional capital in the near-term and will also be exploring strategic partnerships with manufacturing and distribution companies to advance the deployment of the patent pending platform it is developing. To learn more, visit FluroTest.comContact InformationThis news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold within the United States or to or for the benefit or account of U.S. persons, absent such registration or an applicable exemption from such registration requirements.Cautionary Statement Regarding Forward-Looking InformationThis 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, technology 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 Company’s perusal of strategic alternatives for its Cannabis and Hemp sector focused business, its focus on pandemic testing devices, its proposed transaction to acquire up to 95% of FluroTest (“FluroTest Acquisition”), its efforts to obtain approval of the FDA and Health Canada, and the need for financing of FluroTest in the near term and the formation of strategic partnerships for the deployment and distribution of the technology. The Company made certain material assumptions, including but not limited to prevailing market conditions and general business, economic, competitive, political and social uncertainties, the ability to obtain FDA and Heath Canada approvals, as well as the ability to complete the FluroTest Acquisition on the terms set forth herein in a timely manner and to obtain the regulatory approvals required in connection with the same, 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 described in the Corporation’s Annual Information Form under the heading “Risk Factors”, the failure to complete the FluroTest Acquisition on the terms set forth herein in a timely manner or at all, the failure to obtain FDA or Health Canada approval for its products, the risk that regulatory approvals will not be received and the risk that changing circumstances will result in the decrease in demand for FluroTest’s products. 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.