Anti-counterfeit company YPB Group (ASX: YPB) has signed up another customer wishing to utilise its authentication technology within the blooming cannabis industry.
Earlier today, YPB said it had secured its third cannabis partner in less than a month after signing an authentication services agreement with Totem Vaporizers, a Canadian vaporiser manufacturer supplying the emergent cannabis industry.
YPB’s executive chairman John Houston says the company’s growing momentum and recent flurry of deals could lead to YPB securing further service agreements with leading companies in the cannabis industry.
Today’s agreement is the third of a series of deals falling under what YPB calls, its joint “Cannabis Confirmed” initiative being developed in partnership with cannabis company, Namaste Technologies (TSXV: N).
Namaste is an up-and-coming cannabis e-commerce company, flourishing on the back of ongoing changes to Canada’s cannabis legislation.
The company has partnered with YPB to provide what the company calls an “industry-wide authentication and consumer engagement solution” called ‘Cannabis Confirmed’ offered to global cannabis companies including vaporiser manufacturers such as Totem, for which Namaste has exclusive online distribution rights.
Vaping for authenticity
Designed by engineers in Europe, the Totem Vaporizer is the first vaporiser with “end-to-end interconnectivity” that can deliver both convection and conduction in one device.
According to Totem, the brand is expected to become the largest selling vaporiser for 21-30-year-olds over the next few years, with initial volume estimates of 10,000 units a month being expected as the first salvo of a much larger adoption spree in Canada – backed by cannabis legalisation.
Today’s deal paves the way for YPB to boost its client base by offering its services to the cannabis industry, empowered by its active partnership with Namaste.
“We are excited to announce our third services agreement with a vaporiser company and so quickly after partnering with Namaste. The Totem vaporiser is being exclusively distributed by Namaste and we anticipate the agreement to be highly beneficial to YPB, Namaste and to Totem Vaporizers.
“While the Canadian market approaches federally legal recreational cannabis, YPB’s technology can provide the security and authentication requirements needed for consumers to buy cannabis and cannabis-related products with great confidence. YPB’s solutions are also likely to assist in regulatory oversight of the industry,” said YPB’s executive chairman John Houston.
The YPB solution
According to YPB, today’s deal “closely follows” its recent milestone that saw the company develop “the most significant technical advance in its history”, having successfully testing smartphone readability of a highly secure anti-counterfeit mark.
The news means YPB could go on to develop a distinct product that reduces counterfeiting and becomes a highly desirable security consideration for various industrial suppliers.
YPB’s technology allows companies from different industries with a strong need for authentication to reduce counterfeiting.
One industry that’s been identified as having a key need for item-level authentication is medical cannabis – although many others are also in line to benefit from YPB’s technology.
As with many industries including pharmaceuticals, cosmetics and alcoholic beverages, anti-counterfeit measures are sorely needed within the cannabis industry – a highly sensitive product that can potentially have extensive consequences on individuals and wider society.
According to market analysts, almost all major vaporiser brands have counterfeit versions which fail to meet the manufacturing standards applied by authentic manufacturers. The issue has even spread to fake cannabis oils and the proliferation of synthetic cannabinoids which has led to public health care concerns and fears of negative impacts on consumers.
YPB hopes to change this status-quo by commercialising a product that negates counterfeiting and ensures valid products reach store shelves.
The Cannabis Confirmed initiative seeks to stamp out fakes by empowering cannabis brand customers to confirm the authenticity of their product after purchasing online by scanning a unique serialised QR code – called a “ProtectCode” – on the product packaging to complete authentication.
“Authenticity triggers engagement and this interaction connects the physical product to the digital world, enabling direct brand to customer engagement via their smartphone,” says YPB.
“We are elated to be working with YPB and Namaste. As we launch what we believe to be one of the most innovative vaporisers to reach the market, we are confident in the Cannabis Confirmed initiative and YPB’s ability to provide both Totem and our consumers with added value and security,” said Ronan Woods, president and CEO of Totem Vaporizers.
“We’ve been involved in the vaporiser industry for several years and have witnessed many counterfeit products reaching the market. YPB’s technology will provide Totem with technology and comprehensive reporting on our customers via product validation on a global scale,” said Mr Woods.