Green Scientific Labs CEO Paul Crage Provides 2022 Milestones and Priority Initiatives in Letter to Shareholders
DAVIE, Fla., May 10, 2022 /PRNewswire/ -- Green Scientific Labs Holdings Inc. ("Green Scientific Labs" or the "Company"), leading multi-state provider of innovative cannabis and hemp testing technologies and methods, today provided an update for its shareholders by Chief Executive Officer Paul Crage, that discusses company achievements and strategic initiatives to position the business for strong results for the remainder of 2022 and beyond.
Dear Green Scientific Labs Shareholders:
When Green Scientific Labs was founded in 2018, we had one simple thesis…in the intervening years we have honed our linear focus to become the most profitable, widespread testing Company in the cannabis industry, and today I begin the letter with the utmost sense of pride for the company and its dedicated team. Keeping in mind the economic challenges that the country is facing, and the continuing regulatory headwinds the cannabis industry is enduring, I am happy to announce that the Company has met those obstacles head on and achieved some excellent milestones operationally.
We continue to add new locations, clients, build our already robust technology suite all enabling Green Scientific Labs to take our place as a multi-state operator and one of the leaders in the cannabis compliance industry.
2022 milestones thus far:
- We received a complete Medical Marijuana Laboratory Registration Certification from the Arizona Department of Health Services for Medical Marijuana Testing, allowing us to officially begin accepting samples.
- We became only 1 of 6 labs licensed to perform full compliance testing on all products for the state.
- Since opening, our Arizona location has signed up over 75 accounts and seen 100% growth month-over-month. Arizona saw more demand for cannabis than other states in the first year of legalization. It generated $1.9 billion in sales from marijuana products in 2021, far higher than the estimated $1.2 billion.
- We completed the build out of our state-of-the-art 9,950 sf facility in Ann Arbor.
- We were informed that our application for DEA registration has met the requirements of the Code of Federal Regulations Title 21 and will be approved by the Miami Field Division. This validates the systems and controls we have built at Green Scientific Labs.
- Analytical labs that process hemp are awaiting a final ruling from DEA Headquarters which will allow the assignment of a DEA number, which we anticipate occurring prior to the end of 2022.
- We received our temporary marijuana facility permit the City of Ann Arbor, MI. This temporary facility permit is the first step to receiving a full marijuana facility license by the state. Michigan's rapid growth in the past two years has been driven by strong demand with recreational marijuana sales doubling in 2021.
- With marijuana sales expected to exceed $2 billion in 2022, Green Scientific Labs plans to leverage our relationships with multi-state operators ("MSOs") in this massive market.
- Our Davie, FL location had the opportunity to be audited by one of the largest MSOs in the country. This in-depth exercise put Green Scientific Labs to the test, examining everything from our sample prep methods to data accuracy and replicability to technology. I am pleased to announce that we received the top grade in the entire state which we anticipate will lead to new testing business in both Florida and Arizona.
- We completed our buildout of the state-of-the-art 9,630 sq ft facility in the City of Mount Laurel, New Jersey and took possession of a suite of Agilent testing instruments to begin the validation process.
- We received our Certificate of Occupancy from the City of Mount Laurel, New Jersey for our recently completed facility.
- We anticipate applying for ISO/IEC 17025 accreditation in Q2 and intend to be open for testing in Q3 2022.
- With New Jersey opening its recreational marijuana market later this month and expected sales reaching nearly $2 billion, Green Scientific Labs will be one of the early testing laboratories in the state. We believe this will give us great start in the northeast as we prepare to expand into New York, Pennsylvania, Connecticut, and Massachusetts.
We have continued to improve methods and throughput at all locations. This focus on streamlining processes has had an immediate impact on turnaround time. Currently, we are returning results to clients in less than 3.5 days. We believe this metric exceeds all client expectations and has proven to be a great selling tool when courting new business. In terms of financial impact, this has yielded the following results – increased business, increased client satisfaction and retention, and lower cost of customer acquisition. And this is only the beginning.
Lastly, we are in the final stretch of the development of our proprietary new Laboratory Information Management System (LIMS) and anticipate the completion of bug testing and entering the beta stage within the next 45 days. The new LIMS contains a robust set of cutting-edge features including Artificial Intelligence to ensure compliance with state regulations on COAs, real-time turnaround time (TAT) tracking to identify bottlenecks and to ensure industry-leading testing times, digital batch downloading, and real time audit logs that compile a record of events and changes within the software. We believe the new LIMS is more robust than the industry's current leading software and expect that Green Scientific Labs will be well positioned for future regulations.
As we finalize development of the LIMS, we are also nearing a full integration with Confident Cannabis. We expect this integration will give our clients the ability to view all their testing results in a single location which will address a major pain point for several of the larger MSOs that rely on Confident Cannabis as a data repository. We believe having this type of technology gives Green Scientific Labs an advantage over our competition and should lead to new business.
In conclusion, I would like to present my heartfelt thanks and gratitude towards the shareholders as well the team members for their continued support and confidence.
Paul Crage, CEO and Director
Green Scientific Labs
About Green Scientific Labs
Green Scientific Labs (CSE: GSL) is a leading, multi-state provider of innovative cannabis and hemp testing technologies and methods. The company's labs perform product testing to help cultivators, manufacturers, and retailers stay compliant with state and federal regulations. Green Scientific Labs delivers superior marijuana, cannabis, hemp and CBD testing services, and provides unmatched customer service for its clients. For more information, please visit https://www.greenscientificlabs.com/.
Cautionary Statement Regarding Forward-Looking Statements
This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company and statements with regard to the issuance of additional Company Shares in satisfaction of earn-out payments and the expansion of the Company's operations. Words such as "expects", "continue", "will", "anticipates" and "intends" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are based on the Company's current projections and expectations about future events and financial trends that management believes might affect its financial condition, results of operations, business strategy and financial needs, and on certain assumptions and analysis made by the Company in light of the experience and perception of historical trends, current conditions and expected future developments and other factors management believes are appropriate. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
The Canadian Securities Exchange has not reviewed, approved, or disapproved the content of this news release.
SOURCE Green Scientific Labs
Released May 10, 2022