Legally required “quality testing” labs present a compelling way to invest in
the California cannabis market.
The legal cannabis market in California is massive and growing rapidly. California’s Bureau of
Cannabis Control regulations has helped create additional market demand for our test lab
business as mandatory testing is required for every shipment of legal cannabis. Our
management team has proven track records in setting up and operating complex chemical and
microbiological analytical laboratories and have sales/marketing expertise in several industries,
including regulatory industries and cannabis. We have analyzed this market for two years,
including working in an existing cannabis test lab and have a deep understanding of what is
needed for success.
CEO, Seven Saints Superfoods (cannabis edibles)
Sampler, Evio Labs (cannabis testing)
VP Sales & Marketing, C8 Medisensors, (regulated, glucose monitoring)
Start-up experience: Dell, Cisco Systems, a range of software start-ups.
CEO, MetaMorphix (animal genomics)
CEO, Biosys (biological pesticides)
Director of Development, Union Carbide Agricultural Products
Founder, Explorer Analytical Services (chemical analytical equipment)
Set up over 40 cannabis test labs
Wrote hundreds of cannabis test protocols
Achieved ISO certification for cannabis labs.
Cannabis producers (cultivators who grow the plant or manufacturers who process the plant into different products) have a strong incentive to spend money on lab testing. Every product shipment from every producer must pass state-mandated testing in order to reach the consumer. Failed testing can result in an entire shipment being destroyed, on camera, with the video record sent to the California Bureau of Cannabis Control. To ensure a successful compliance test, producers conduct 2-3 pre-compliance quality assurance tests for every actual compliance test. The average price of a compliance test is $750 and the average price for all tests combined (average of most frequent QA tests and compliance test) is $447 but the average cost to deliver all tests is $23.47.
We have secured a lease, are building out our first lab in Oakland and have assembled a core team with the required expertise. Our management team has proven track records in setting up and operating complex chemical and microbiological analytical laboratories and have sales/marketing expertise in several industries, including regulatory industries and cannabis. There are significant regulatory and expertise related barriers to entry in the quality testing business. We have analyzed this market for two years, including working in an existing cannabis test lab and have a deep understanding of what is needed for success.
