CannLabs: Newest Publicly Traded Cannabis Company
CannLabs (OTC: SDSPD) on Friday collected $1.25 million in a reverse merger.
Along with buying shares of the shell company, CannLabs completed a $500,000 private placement for 500,000 shares of stock. The investor will provide an additional $750,000 in exchange for warrants to purchase 20 million additional shares.
CannLabs is a third-party cannabis testing facility for both medical and non-medical-grade cannabis products. Testing services include potency testing, residual solvent testing and microbiological testing. The company’s primary customers are growers, dispensaries, caregivers and other end users of cannabis.
In the press release announcing the offering, CannLabs explains what the capital will be used for: “Expansion into other states, research and development, patent expenses, general and administrative expenses and carrying out its business plan.”
One of the first opportunities investors have to discuss its business with investors will be at the WeedStock Conference from June 29 to July 1 in Denver, Colorado. Along with presenting its offerings, investors will have time to question company executives in the exhibition hall and meet at cocktail receptions.
CEO Genifer Murray gave insight on the value of the company’s business beyond the face value of testing, a more complete understanding of which can be gained at WeedStock.
“There is tremendous value in owning, distributing and extrapolating insights from the data we collect every day. We are deploying a fully integrated business approach to leverage these opportunities and provide enhanced and complete solution for our customers across North America."
Investors should also note that CannLabs will change its ticker from SDSPD to CANL on July 10.
Shares of the company last traded at $1.38.
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