Save about 18 Months for Lab Set Up and Licenses, Method Development, and ISO Certification
Enter the MI Market Quickly with this Almost New Lab at Half the Price
Our Client has a 2-year-old, hardly used Cannabis testing laboratory that can provide a wide variety of cannabis testing services to ensure that products are safe before they go to market. Without proper third-party lab testing, the consumer can’t be sure and cannot trust what a product label claims. The Lab’s Certificate of Analysis (COA) ensures that a company has undergone rigorous testing to assure customers that its product is safe and of the highest quality.
Cannabinoid potency testing measures the presence of a given cannabinoid within a cannabis product. Measuring the potency of these cannabinoids helps users understand the product’s strength. A product that is too strong will cause the user to have a bad experience, while too low likely won’t produce the desired effect. As users become more informed, they know what potency they need to achieve their individual goals.
The owner of the Laboratory also has another Lab business, an established Clinical Lab Business that is a busy and thriving business with two locations – one in the same building as this Lab and another in FL.
The core business of Clinical Lab is doing quite well and keeping the owner very busy, and the owner realized that he is not able to handle this new business of Cannabis testing. So he has decided to divest this Lab.
Setting up a new Cannabis Testing Lab is quite an arduous task and can easily take 12-24 months to set up a lab from scratch. The advantage of getting a ready facility with Cannabis testing license means that the buyer can quickly enter this fast-growing $2B Cannabis Market in MI. While there are several Marijuana testing labs in MI, not all labs offer this Lab’scomprehensive testing capabilities.
The tests offered include:
- Chemical Residue
- Foreign Matter
- Heavy Metals
- Terpene Profiling
- Pesticide Screening
- Potency Testing
- Microbial Testing
- Residual Solvents
- Vitamin & Acetate
- Water Activity
The Company has invested about $2M in setting up the Lab, validating the various tests and test panels, and getting the necessary certifications. In addition, it comes with intangible assets that include state and city licenses and the ISO certification. The cost of hard assets (equipment and software) is about $1M. The equipment was purchased in 2020 and has seen very little use.
The buyer can also expand into pharma and food testing with this lab. The equipment used for pharma and food testing labs are fairly similar to the ones used in a cannabis testing lab.
The Lab is offered for $995K.