MOU lays the groundwork for potential commercial implementation
Applied DNA Sciences, Inc. (NASDAQ: APDN) (“Applied DNA”), a leader in large-scale PCR-based DNA manufacturing and authentication, announced today that it has signed a non-binding memorandum of understanding (the “MOU”) with Reliance Industries Ltd. (“RIL”) to develop and commercialize apparel made from RIL’s R|Elan GreenGold® fabric and Recron GreenGold® recycled polyester fiber and filament powered by CertainT. The collaboration as set forth in the MOU, provides for potentially extending apparel manufacturing using R|Elan GreenGold®, and the use of recycled polyester through Recron GreenGold into consumer and industrial applications in the global markets. Applied DNA has already demonstrated with its supply chain partners, full end-to-end traceability by tagging over 20 million lbs of recycled polyester, testing of hundreds of samples, and tracking of forensically authenticated products from fiber to finished goods. Commercial products are sold in over 4,000 US retail stores, with expansion into international markets before the end of 2019. Prior to the signing of the MOU, Applied DNA and RIL had tagged recycled polyester at RIL’s facilities in India in successful proof-of-concept studies. Under the MOU, samples will be tested both on-site and at Applied DNA’s laboratory in Ahmedabad. The groundwork for commercial scale-up for DNA production for manufacture of CertainT tagged staple fiber and filament yarn is underway. Joint marketing will support sales and business development in US and European markets.
“At Reliance, we believe that sustainability with traceability is a must and not a maybe. We aim to be an industry leader in sustainability for recycled polyester, and that is why we believe CertainT is the best solution,” stated Hemant Sharma, Head Polyester Business, RIL.
As there is much uncertainty related to the use of post-consumer recycled polyester to make sustainability product claims, brands and retailers can be confident that their products marketed and sold as 100% recycled are proven with forensic assurance and authentication. “Our R|Elan brand is growing in apparel and it is used by brands such as Arrow, Lee, Wrangler, Raymond, Anita Dongre, Kappa and many more. These brands now have the option to add CertainT forensic traceability to assure that their products are sustainable, traceable and authentic,” stated Gunjan Sharma, Chief Marketing Officer – Polyester Business, RIL.
“Eco-friendly,” “natural,” “green,” and “organic” are typical sustainable claims and labels that can be confusing and misleading to consumers. Whilst more companies and key opinion leaders are espousing to be “green” through advertising and marketing, how do we know for sure that they are actually implementing business practices that minimize environmental impact? “Without Applied DNA’s proprietary molecular tagging system, the uncertainty, and risk is too high and the burden of proof is much harder for brands and retailers. So we are very excited to bring a solution that we believe can truly make a difference for the planet, the people and our processes,” added Gunjan Sharma. RIL’s Recron GreenGold fiber is made from 100% used PET bottles. It has one of the lowest fiber carbon footprints globally. Sustainable feedstock developments include modern in-house manufacturing for recycling waste PET bottles into sustainable fashion solutions. Eco-friendly manufacturing to ensure maximum water is recycled (up to 90%) and all water re-used in manufacturing and horticulture. Reliance operates a state-of-the-art water effluent treatment process system consistent with their zero waste concept that all material is either used in process or sold in market. “Reliance is a key partner for us because you can trust that the post-consumer recycled polyester process is meticulously managed from bottle to fiber, and that scalability is done in a fully controlled environment. Secure chain of custody is a true value addition to the supply chain, and CertainT tagged recycled polyester provides an indelible stamp of approval that many brands and manufacturers need,” stated Dr. James A. Hayward, President and CEO, Applied DNA Sciences.
About Reliance Industries Limited
Reliance Industries Limited (RIL) is India’s largest private sector company, with a consolidated turnover of INR 622,809 crore ($90.1 billion), cash profit of INR 64,478 crore ($ 9.3 billion), and net profit of INR 39,588 crore ($5.7 billion) for the year ended March 31, 2019. RIL’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services. RIL is the top most ranked company from India to feature in Fortune’s Global 500 list of ‘World’s Largest Corporations’ – currently ranking 106th in terms of both revenues and profits. The company stands 71st in the ‘Forbes Global 2000’ rankings for 2019 – top-most among Indian companies. It ranks 10th among LinkedIn’s ‘The Best Companies to Work For In India’ (2019).
About Applied DNA Sciences
Applied DNA is a provider of molecular technologies that enable supply chain security, anticounterfeiting and anti-theft technology, product genotyping and pre-clinical nucleic acid-based therapeutic drug candidates. Applied DNA makes life real and safe by providing innovative, molecular-based technology solutions and services that can help protect products, brands, entire supply chains, and intellectual property of companies, governments and consumers from theft, counterfeiting, fraud and diversion. Visit adnas.com for more information. Follow us on Twitter and LinkedIn. Join our mailing list.
Common stock listed on NASDAQ under the symbol APDN, and warrants are listed under the symbol APDNW.
Forward-Looking Statements
The statements made by Applied DNA in this press release may be “forward-looking” in nature within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of
1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe Applied DNA’s future plans, projections, strategies and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of Applied DNA. Actual results could differ materially from those projected due to substantial doubt relating to Applied DNA’s ability to continue as a going concern, the possibility of failure to make timely payment on its outstanding secured convertible notes and resulting enforcement by noteholders of remedies on collateral which includes substantially all of Applied DNA’s assets, its history of net losses, limited financial resources, limited market acceptance, its ability to penetrate key markets, including its ability to successfully enter into commercial contracts for the implementation of its CertainT® platform and various other factors detailed from time to time in Applied DNA’s SEC reports and filings, including our Annual Report on Form 10-K filed on December 18, 2018, as amended, our subsequent quarterlyb reports on Form 10-Q filed on February 7, 2019, May 9, 2019 and August 13, 2019, and other reports we file with the SEC, which are available at www.sec.gov. Applied DNA undertakes no obligation to update
publicly any forward-looking statements to reflect new information, events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, unless otherwise required by law.
