A nice week’s work: Applied DNA Sciences unveils two breakthrough contracts and institutional investor financing

On a roll,  Applied DNA Sciences has caught media attention with three head-turning announcements in the space of five days.  A high-profile agreement with the legendary Guitar maker Martin Guitars was revealed on July 19, only one day after the firm took the wraps off a $5M round of investment from important institutional investors.  Only four days earlier, the company announced an agreement with secure packager Disc Graphics (DISC), our first opportunity for entrée into pharma anti-counterfeiting, as well as cosmetics and other industries.

The agreement with Martin has already caused a buzz in the media, with the company’s enormous following among musicians and music lovers.    Since 1833, Martin has increasingly built its legend among performers and amateur musicians, turning out its 500,000th guitar in 1990, and their millionth in 2004.   Martin models have been played by Elvis Presley, Eric Clapton, Bob Dylan, Led Zeppelin, Ian Anderson of Jethro Tull, The Band, and countless other famous bands and musicians.

Martin has recently fought to convince the government to crack down on fake Martin guitars, coming especially from China.

Applied DNA will provide highly secure, uncopyable DNA marks which will be added to new guitars, creating a foolproof system to thwart counterfeiters.

"It certainly sends a very strong message to the industry that we have an elegant, sophisticated authentication technology," Martins’s Vice President of Operations Gregory Paul told the Allentown Morning Call. "We don't know right now anyone else in the music product industry that is using an authentication technology of this strength and sophistication."

Only one day earlier, APDN announced that it had closed on a $5.0 million institutional round of financing, via a private placement sale of its common stock.

Two investors, who contributed the majority of the funding, bring years of experience and expertise to the company, Gerald Catenacci of Neustrada Capital and John Bitzer, III of Abarta. “Abarta welcomed the opportunity to add to its current investment in APDN because we believe that this funding will allow APDN to build on its tremendous momentum and secure its place at the forefront of security solutions companies,” commented Mr. Bitzer.

“APDN is well poised to dominate the demand for source authentication,” stated Mr. Catenacci. “We are confident the company will continue to add key accounts, satisfy marquee customers, and integrate technologies into multiple industry verticals.”

The company intends to use the proceeds to take full advantage of available market opportunities and to grow the company at a critical juncture in its development.

Disc Graphics to use DNA for secure packaging

DISC will be using unique DNA taggants, developed specifically for them by APDN, in its labels and packaging business.  DISC is well known in the industry for creating custom solutions to address their customers’ needs.  The use of DNA taggants, as part of a layered security system offered by DISC, further differentiates the packager.

The scourge of counterfeiting in packaging has greatly intensified in recent years. The global anti counterfeit packaging market will reach about $82.2 billion by the year 2015, according to California- based Global Industry Analysts Inc.