Cannlabs Inc (OTCMKTS:CANL) is slowly falling in recent trading. CANL was incorporated in Nevada as Speedsport Branding, Inc. back in 2006 trading under the stock symbol SDSD. The Company was focused on designing and modifying motorsport racecars for its own use, and providing race consulting services to other race teams. Since hitting the bb’s CANL has been steadily losing ground.
In June of this year the Company completed a reverse merger with Bond Holdings, Inc. becoming a fully owned subsidiary of CANL. They also affected a 7 for 1 forward split of the stock and changed their name to Cannlabs Inc.
Cannlabs Inc (OTCMKTS:CANL) bills itself as the respected authority and advisor to commercial, governmental and educational entities focused on the Cannabis industry. The company leverages its propriety scientific, testing processes, cloud-based business intelligence and data/analytics as well as consulting services to garner revenues from legalized cannabis states and their constituents.
Indeed CANL seems to appear in the media on a regular basis as in expert on the fast growing Marijuana sector. Through Carbon Bond Holdings Inc. and the state certified labs it has relationships with, CannLabs delivers best practices around products, services and business intelligence focused on the Cannabis industry.
CannLabs’ customers include states that currently have legalized medical or recreational cannabis along with their associated growers, dispensaries, manufacturers of edibles, and residential consumers seeking information on cannabis.
CANL derives revenue in the form of licensing fees and administrative fees under the License Agreement and the Administrative Services Agreement with CannLabs Colorado; a stand-alone cannabis testing laboratory. Under Colorado law, the holders of licenses for marijuana related businesses must be residents of the State of Colorado, or all of the owners of an entity must be Colorado residents. Accordingly, the license for CannLabs Colorado is held by CannLabs Colorado whose owners are CANL Founder and President, Genifer Murray, and Chief Technology Officer and Chief Information Officer, Steve Kilts, both of whom are Colorado residents.
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CannLabs recently opened a new 4,000 square foot facility in Connecticut, with full capacity expected to be reached within the next 180 days. The medical-only cannabis testing facility has secured multi-year exclusive testing contracts with two of the four licensed growers in the state. With a cost of $1 million to build out, the lab is expected to generate $2-3 million during the first year at capacity.
Moving forward, the company anticipates a 12-18 month payback period of each 4,000 square foot lab, with about six months to ramp up to full production and 12 months of netting approximately $1 million. These timelines could shorten in the future when factoring in higher margins from additional product formulations and other consulting services that it offers in addition to lab testing services.
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On November 21 CANL announced that it has received a commitment for a $750,000 line of credit from an existing stockholder of the Company. CEO Mark Mirken said “We are extremely pleased to have secured this commitment from one of our existing stockholders. This capital will help accelerate our planned expansions into the Connecticut and Nevada markets. Additionally, it will allow us to capture acquisitions that are accretive to our revenue strategy. Securing this line of credit from an existing stockholder demonstrates confidence in our ability to continue executing our strategic plan,” added Mirken.
Currently trading at a $68 million market valuation CANL seems to be making all the right moves; they boast a strong management team that owns 80% of the shares outstanding and they have been able to raise $750,000 in the very short term frame. As pot stocks heat up CANL is one to watch and deserves to be on investors watch lists.
CANL is slowly falling in recent trading; investors have welcome CANL in to the pot stock fold and seem to be accumulation shares here. The Company has been recognized as an industry expert and regularly appears on national media to discuss Marijuana.
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Disclosure: we hold no position in CANL either long or short and we have not been compensated for this article.