Edmonton-based companies Visionstate and Freedom Cannabis have signed a non-binding memorandum of understanding "to pursue strategic opportunities in business and technology development."
The collaboration marks the introduction of Visionstate's Internet of Things (IoT) technology, called Wanda, to the cannabis industry.
Initially, the technology will be used to measure operational performance in grow rooms, Visionstate CEO John Putters told Taproot. The technology will be tailored toward collecting data on routine processes, including the maintenance and sanitation records in grow rooms. Currently, the tracking and stamping of employee tasks for most cannabis producers are paper-based, which includes tracking of maintenance, pest control, defoliation, and cleaning and sanitizing rooms and equipment. All of that will now be tracked digitally using Visionstate's technology.
Visionstate’s IoT technology, called Wanda, is currently used throughout North America. (Supplied)
Putters said now is the right time for this move because the cannabis industry is poised for a second wave of investor interest.
"Partially because of what is happening in the U.S. and the new administration's pledge to legalize cannabis federally. Additionally, the licensed producers of cannabis are now being measured by performance and efficiency, so if technology can reduce costs and improve efficiency, now is the time to address those needs," he said.
As for future opportunities as the two companies work together, Putters said while Visionstate is a publicly-traded company and Freedom Cannabis is currently privately held, "there may be opportunities down the road for further investment into Freedom Cannabis by Visionstate or a full out merger between the companies."