CannLabs Inc. (OTC: SDSPD), a solutions provider with intellectual property, proprietary cloud-based analytics, and scientific methods to serve the cannabis industry, recently announced that it signed an exclusive three-year testing and analytics agreement with two of the four businesses licensed to grow medical marijuana and produce related products in the State of Connecticut.
“We are excited to solidify these long-term agreements and our entrance into the Connecticut market,” said CannLabs CEO Genifer Murray. “The growers will use CannLabs for all mandated testing of their medical marijuana products. We view this as a meaningful near and long-term opportunity and will grow with our customers as they scale their businesses to meet patients’ needs across the state.”
Under Connecticut law, all medical marijuana products must be tested for potency, microbial, pesticides, and other contaminants, while dispensaries are only permitted to provide medical marijuana products from licensed growers. The company’s new laboratories will ensure safe, compliant, and consistent product is delivered to customers in Connecticut and other states where it operates.
CannLabs expects to begin testing once the first products become available from the growers around August 2014. In the future, the number of Connecticut operations utilizing the company’s services could expand, as the state has reserved a total of ten business licenses with only four issued to date. The company also operates in several other states, including in the first state-licensed lab in Denver, Colorado.
Earlier this month, the company appointed new talent to its Business and Technology Advisory Board, including Jon Merriman and Carl Banzhof, and announced that it would be presenting at the first annual WeedStock Conference on June 30th in Denver, Colorado at 9:45am MDT. These efforts could both boost the operational side of its business and expand its profile in the investment community.
Shares of CannLabs Inc. rose 2.67% in early trading on Wednesday morning following the news announcement.
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