Bio-Sunn Technologies and GCAC have entered into a Letter of Intent to work with industrial and CBD hemp growers to develop premium products on a sustainable and transparent supply chain using the Company's "Efixii" and "clearESG" software. The Definitive Agreement is to be signed no later than July 31, 2022.
In the LOI, Bio-Sunn represents it will be processing hemp for 1,000 farmers and distributors in 20 States and Canada through its production facility in North Dakota. To capture the data from the hemp supply chain, Bio-Sunn will acquire a Resale and a License to Use Agreement for the Company's Efixii and clearESG software. As part of Bio-Sunn's non-exclusive right to resell agreement, farmers will pay a fee per QR code to use Efixii. A QR code is generated for farming attestations recorded on a blockchain. clearESG is offered to these farmers, for a monthly fee, to evidence supply chain sustainability reporting. For processing hemp into manufactured products, Bio-Sunn will also pay GCAC for both the use of Efixii and clearESG. Annual licensing fees for each farmer will average USD$2,000 per year for a 3-year contract with the Company. US hemp production was recently valued at USD$824 million in 2021 by the US Department of Agriculture.
CEO Bradley Moore stated, "GCAC is a true blockchain-driven supply chain app for agtech. We do three things really well; drive sales of premium products, fix supply chain issues fast, and reward great partners who create great products. Our latest tech stack is one of the most advanced layer two Ethereum blockchains available and incredibly robust in helping people run real businesses. This deal with Bio-Sunn is the reason we made Efixii and clearESG."
Says Lewis Bauer, Bio-Sunn CEO, "As an industry, we are delighted to partner with a technology company that will bring the rural hemp farmers into the conversation, and we will have "real documented 'farm to table' stories."
Efixii is licensed to farmers in a SaaS model and is a free-to-use app for industrial hemp and cannabis consumers. Efixii's cannabis data is the intellectual property ("IP ") of GCAC. This IP creates an inherent difficulty in replicating or competing with GCAC's cannabis datasets. GCAC defined their protocols in a provisional US patent application, 'System of Process and Tracking Cannabis Products and Associated Method Using Blockchain' filed with the USPTO on Dec. 17, 2020.