Modern Cannabis Testing Lab with Surging Revenues

Significant Growth Opportunity by Expanding the Testing Menu

This is an excellent opportunity for a Cannabis lab or any Analytical Lab to acquire this growing Maine lab, enter the area of Cannabis testing, and have a footprint in the New England region.

The Lab has acquired fifteen new clients, mainly in the last two quarters, and gained new business from existing clients, as many of their cannabis grower clients have also started selling cannabinoids containing end-products that also need to be tested.

As a result, its revenues are projected to surge by over 40% to $1.4M in 2024, and a healthy EBITDA of over $300K with the current slate of clients – although it anticipates adding even more clients. It is also widely expected that Maine will finally mandate testing Medical Cannabis due to public outcry over a recent investigation that found that over 40% of the Medical Cannabis tested was contaminated with pesticides or mold/fungi. This will further boost annual revenue by a projected $300-$400K and EBITDA by $200-300K

Although set up as a Cannabis testing lab, the Lab is essentially an analytical lab that can perform many other types of analytical testing with its equipment. Hemp testing would be a natural addition since it will open up the national market. One can also add food safety testing, microbial testing, food supplement testing, and many other tests. Many environmental labs, pharma testing labs, or even clinical labs do cannabis testing since the equipment used in all these labs is very similar.

The lab is modern (just three years old), ISO-accredited, and has state-of-the-art equipment, including two ICPMS, GCMSMS, LCMS, etc., and is located in a 3,600 sq. ft. facility. There is plenty of room for expansion.

The major highlights of this opportunity are:

– The Lab has positive EBITDA now.
– It is offered debt-free.
– Could be a good fit for Environmental / Food Testing / Clinical Labs to expand their Testing Menu
-The current year’s projected revenue is $1M, and EBITDA of $130K; the projected revenue for 2025 is $1.4M and $310K
– It is widely expected that Maine will mandate testing of medical marijuana due to widespread contamination reported in medical marijuana (the only state that does not mandate it). This would significantly increase the cannabis testing market and add another $200-300K to the net profits.
– The buyer can add other tests to expand the revenue stream.
– Only one of four labs for cannabis testing in the state – one other lab just closed its doors last month.
The owner has spent over $2.5M setting up the lab and bringing it to this level. He and his wife have been doing analytical chemistry work for 35 years and would like to retire soon. They are offering this lab for $1.375M. The condo housing this lab is also available (approximate price ~$675K).

Note that the EBITDA and Revenues mentioned are what the buyer will inherit in 2025 from the customers already procured since the Business has grown significantly in the last few months.