(Note: This story has been updated from an earlier version.)
Embattled MJ Freeway received a key vote of confidence Thursday after Pennsylvania awarded the Denver company a $10 million contract to provide a seed-to-sale tracking system to keep tabs on the state’s new medical marijuana program.
Moreover, MJ Freeway has teamed with technology giant Oracle Corp. to implement the tracking system technology, the latest sign that mainstream companies are keen to participate in the marijuana business.
The five-year contract is a shot in the arm for MJ Freeway, given that Pennsylvania’s MMJ market is forecast to generate more than $100 million in annual sales a few years after it’s up and running.
It comes after MJ Freeway’s widely used software platform for cannabis businesses crashed on Jan. 8, affecting hundreds of retailers and resulting in millions of dollars in losses for the industry, according to some estimates.
MJ Freeway previously said a cyberattack brought down its systems. Still, the company took a hit, raising questions about its future.
“MJ Freeway submitted the strongest proposal and was selected on those merits,” April Hutcheson, a spokeswoman for the Pennsylvania Department of Health, wrote in an email to Marijuana Business Daily.
“We are aware of the system failure MJ Freeway experienced in January during the procurement process, and that it has resolved any issues surrounding the breach.”
State government contracts like Pennsylvania’s have become a lucrative – and prestigious – source of income for software companies that provide seed-to-sale tracking systems.
Pennsylvania officials expect the MMJ program to be fully implemented by early 2018, according to a news release.