FluroTech (CSE:TEST) is an Alberta-based technology company that is focused on developing alternatives to traditional laboratory testing.
CompleTest, its flagship technology, uses fluorescence spectroscopy technology to provide customers with a portable method to measure the THC and CBD in their product. Shares of FluroTech have dropped 20% as of early afternoon trading on September 26.
Investors are gearing up for "Cannabis 2.0", which is the next phase of legalization in Canada. This will include the legalization of edibles and vape pens. Larger producers are preparing massive rollouts, but FluroTech is in a better position to capitalize on movements south of the border.
The company gave an update in September on its hemp betas with extractors in the United States and Canada who are validating FluroTech’s CBDA testing protocol. So far it has posted positive results with CompleTest. It expects beta testers to become purchasers of the technology, and already reported several sales.
FluroTech aims to penetrate the fast-growing U.S. hemp market. Cultivation licenses have increased from just over 3,500 in 2018 to over 16,000 in 2019. The U.S. market is gearing up for moves in the cannabis space overall, and top market players are expecting legislation to hit in the near term.
Shares of FluroTech are currently trading at the low end of its 52-week range. FluroTech is well-positioned to penetrate the promising hemp market. Cannabis tech stocks still offer reasonable valuation compared to the more bloated producers.
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