Tech - 2385
GMP Analytical Laboratory With Canadian Cannabis Testing License and Specialized in Pharmaceutical, Food, Cosmetics, and Natural Products Testing

Opportunity to Get in Early in the Exploding Market

Disclaimer: Technologypark has not independently verified any of the information in these descriptions, and makes no warranty as to their accuracies or completeness. It is also recommended that the buyer consult with experienced advisors.


This is a great opportunity to buy this Canada-based GMP laboratory that has the coveted Cannabis testing market. Currently only 39 labs in Canada are licensed to do this out of which only 33 are commercial labs, others are universities or research organizations (see the list here). It is also proficient in the analysis of pharmaceutical, cosmetics, food, and natural health products and has US FDA and Health Canada license.

According to a Deloitte report, Canada's cannabis market (including the ancillary market of growers, testers etc.) will be worth $13-$23 Billion. Out of this, the cannabis testing market would be worth $1.5 Billion by 20121, according to a report in Analytical Cannabis.

Each batch of cannabis needs to be tested and there are 70 licensed growers in Canada currently and only 33 commercial labs are licensed so far, a few of these belong to large global labs. Hence there is only a small number of commercial labs are available for sale. If one were to start a lab from scratch, it would take 18-24 months in order to set up a GMP lab first, get Health Canada license and then to get the cannabis license. This lab would allow one to get into the market immediately and be amongst the first ones to enter this market.

Cannabis testing is a high margin test with 40% net profit margin possible.

Other Capabilities

The Lab is registered / licensed with Health Canada and US FDA and is expert in testing Food, Pharma, and Cosmetic Testing, all of which are high margin tests. The lab currently had a modest revenue of $700K in these tests but with a buyer that has contacts in the industry, this market can be expanded significantly. The lab is a great alternative for customers in the USA who want to save money without sacrificing quality. Due to weaker Canadian dollar as well as cheaper labor costs in Canada, customers realize significant savings, while still keeping their work in North America.


The Company provides following testing services for Cannabis, Pharmaceutical, Natural, Cosmetics and Foods products:


Asking price for this lab is $5.5 Million. The price is based on the opportunity to immediately get into the Cannabis testing market in Canada, which is currently in the early stages with only 33 labs serving 70 producers. Starting from scratch, it may take someone from 18-24 months to set up the lab and get all the licenses and develop all the methods to test for Cannabis. In addition the lab comes with Health Canada and US FDA registrations and established methods for testing pharmaceutical, cosmetics, and food for both, US and Canada market. It also comes with some business - about $500-700K of pharmaceutical testing business.

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