Canbud Distribution moves closer to acquire U.S. cannabis tester Steep Hill

The Toronto-based company eyes strategic position in analytical testing services in North America.

Canbud Distribution Corp. operates on a trinitarian model founded on cannabis, psychedelics, and plant protein.

0

Canbud Distribution Corp. wants to gain a foothold in the cannabis testing industry in the U.S. and Mexico.

In connection with this, the Toronto-based company is moving to acquire Steep Hill, Inc., a Berkeley-headquartered commercial laboratory.

“The Steep Hill combination represents a key growth strategy for Canbud to expand into the United States and Mexico,” Canbud CEO Steve Singh said in a media release Wednesday (December 8).

Canbud operates what it describes online as a “trinitarian” model with pot, psychedelics, and plant protein as pillars.

Earlier on July 8 this year, the company announced that it completed the acquisition of Molecular Science Corp.

MSC is a Scarborough, Ontario-based testing company licensed by Health Canada under the Cannabis Act.

“Coupled with the acquisition of Molecular Science Corp. in July, Canbud is now well-positioned to be a leading participant in the cross-border analytical testing services industry,” Singh said in the media release.

The move represents a strategic step as federal cannabis laws in the U.S. may change.

“With the potential for federal deregulation in the United States, Canbud will be uniquely situated to partner with Canadian and U.S. Multi -State Operators (‘MSOs’) to provide regulatory and consumer safety testing services,” Singh said.

Last summer, Canbud announced that it entered into a non-binding letter of intent on August 7 to acquire with Steep Hill.

In a media release about the announcement, Steep Hill was described as the “first commercial cannabis laboratory” in the U.S.

It was founded in 2008. Its primary business is the “licensing of its brand, trademark, licensed lab testing procedures and software to its licensees conducting analytical testing of cannabis and hemp products under the name ‘Steep Hill’”.

In the December 8 release, Canbud revealed that it entered into a “definitive merger agreement” a day prior with the U.S. entity through its Canbud Merger Sub, Inc. subsidiary.

“Given the extensive geographic footprint of Steep Hill, combined with the strong technical expertise across the combined company, we have laid the foundation for a strong and sustainable business model,” Singh said.

Steep Hill CEO Nigel Stobart indicated that his company has licence agreements in 11 jurisdictions across the U.S. and Mexico.

“Not only will Canbud provide financial resources to accelerate Steep Hill’s continued geographic expansion, it will also provide Steep Hill’s existing and future licensees with a global platform of plant-based science leadership,” Stobart said.

Canbud trades in the Canadian Securities Exchange under the ticker symbol CBDX.

Follow Carlito Pablo on Twitter at @carlitopablo

Leave your opinion for the editor...We read everything!

Your email address will not be published. Required fields are marked *