DC Brands International Inc. (OTC: HRDN), formerly a functional beverages and health products provider, announced plans earlier this month to pivot its business to target the cannabis industry. On Tuesday, management announced that it’s pursuing acquisition opportunities targeting the laboratory testing segment of Colorado’s rapidly growing medical and recreational marijuana industry.
“We believe that the recent tragedies in Colorado related to the edibles market highlight the need for testing to ensure proper disclosure and consistency of THC levels in these products,” said DC Brands International Inc. CEO and CFO Bob Armstrong. “We are currently in negotiations with a Denver-based chemist to setup a laboratory for testing marijuana products.”
Currently, Colorado does not limit the THC content of cannabis products. Residents can take the one-ounce per purchase in hash oil and it’s viewed the same as an ounce of the plant. THC levels in the 25% to 27% range have become common and significantly higher than the 3% ranges in the 1970s. These high levels may have contributed to recent tragedies in Colorado perpetrated by high adults.
Two bills filed late in the Colorado Legislature appear to be put on the fast track to put real limits on recreational marijuana following these events. Lawmakers are expected to put more restrictions on edible forms of marijuana, including eliminating items that mimic children’s treats and regulating the amount of THC that can be included in the edibles and purchased by individuals.
These new limitations may require mandatory government testing along the lines of Washington State’s Initiative 502 requirements, which require certified laboratories to test THC content, contaminants, and other factors influencing cannabis. Many laboratories have sprung up to capitalize on the demand for testing, although official regulations are not likely to become law for at least a couple months.
Shares of DC Brands International Inc. jumped more than 30% in early trading on Tuesday and have doubled over the past month.
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