Raising Cannabis Capital 0098: SC Labs

The cannabis industry's long-term success is dependent on products being safe from contaminants   SC Labs is one of the first cannabis testing labs in the country.   From it's start, over ten years ago in California it has provided manufactures with the information they need to protect their customers.  Dan Humiston speaks with CEO and founder Jeff Grey about cannabis testing and their plans to expand nationally and internationally. 

Produced By MJBulls Media

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Dan Humiston:
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Jeff Grey:
Everybody in the cannabis space is looking at the opportunity saying those markets provide opportunities for expansion and honestly and have a great need for the services that we provide. So we're looking towards expanding our geographic footprint and moving into Canada moving into other spaces and in the States and really following through what we think is the business model that best supports our clients here and partners in existing spaces.

Dan Humiston:
It's Mjbulls podcast a show about raising cannabis capital.

Dan Humiston:
I'm Dan Humiston. And on today's show how this California cannabis testing lab is applying their ten years of experience to their national and international expansion.

Dan Humiston:
Today and the raising cannabis capital series we are joined by Jeff Gray the CEO of SC labs. Jeff welcome to the MJBulls podcast. Thanks for having me.

Dan Humiston:
Jeff I actually would like to start off the show with almost a public service announcement. Your lab test cannabis. But I don't really know if people can appreciate that there are some dangers to ingesting cannabis just for the black market. I mean those days should be gone if you can elaborate a little bit on that before we get started almost as a public service announcement.

Jeff Grey:
Sure. The last minute business for 10 years now. We've definitely seen many iterations of the cannabis industry and the cannabis space here in California. Over that time hopefully had the impact on the industry that is moving us towards something that is safer both for the patient and for those people seeking cannabis is something to add to their lifestyle. To be wellness or treating a medical condition or what have you. I think the biggest problem for all of us at that time was the lack of transparency and the sourcing and the production of cannabis product. We had very little insight as consumers and as patients what we were ingesting any other products you put on your body has been tested to some degree as some amount of oversight. And obviously because of the regulatory space and the political side and around cannabis that wasn't something we were afforded. We've seen an evolution in best practices in the industry and hopefully labs like ourselves and others have had an impact on that and giving patients and consumers some way to have.

Dan Humiston:
So a lot of insight and have some the data today cannabis testing labs provide so much more information than just that the products are free of contaminants. Tell us some of the other information that you provide to your clients and to their customers.

Jeff Grey:
Sure. California Labs for instance were qualifying products as being free from heavy metals pesticides residual solvents pathogenic species of microbiology. Those are requisite and it establishes a baseline whatever product you're buying off the shelves clean. But there's this whole other world of cannabis testing that it feeds into writing value up and down the supply chain. So you'd imagine that some of these products nowadays formulations are so intriguing. A lot D testing will do a lot of in process testing qualification inputs students basically validating formulations validating extracting efficiencies. I mean we're really here to support our clients as partners providing data that's actionable that leads them to better practices or their product. Sure.

Dan Humiston:
And I know just reading in your website this isn't a one and done deal. There's a change from harvest to harvest and the same strain of cannabis which seems mind boggling to me.

Jeff Grey:
Absolutely. When we think about it first. Cannabis is an incredibly complex product. The number of bio available chemicals and a cannabis product are significant. I mean some yet really to be fully understood. And I think when you look at whether it's a cultivator. And they're either checking practices or they're continuing to test harvest a harvest for differences between August Jefferson's Gene output or it's cannabis producers creating infused products edibles tinctures what have you. I think in all of those I don't think the job of quality assurance is ever done. There is hardly ever just the one and done. We've proven that this is clean or we've proven that this is the dosage. Is sort of a constant vigilance there within any business to show that product meets their standards. Yes appliances make incredible product and their standards are very high as they should be. And there's this back and forth where we're continually feeding them data that allows them to achieve those standards.

Dan Humiston:
I want to take a minute to remind all of our listeners about a new podcast produced by MJbulls media appearances a weekly show about the company's products and entrepreneurs who are using this amazing plant to create and improve the products we use every day. You can listen to my parents every Tuesday on Apple iTunes Stitcher Spotify wherever you get your podcasts from your vacation in California and in Oregon or are plans for new locations.

Jeff Grey:
So last started as a California company. We've been here for the last 10 years. We're really focused on this region of the country yet its rich history of supplying so much cannabis I mean so many genetics and so much value to the cannabis industry and so the cannabis moving as we saw this market begin to develop and grow. We realized that focusing on the California market was key. RC labs is the largest market share with roughly 25 percent of the market here in California. That's taking some effort so that's a significant position in a market the size Oregon was sort of the next logical step for us may look to multi-state operators that we support as clients and partners or in vessel where we saw production happen to me at some point this will be state by state and hopefully these reasons will be really strong. Yes we believe that to be a case like Florida I mean everybody in the cannabis space is looking at the opportunities saying those markets provide opportunities for expansion and honestly and have a great need for the services that we provide. So we're looking towards expanding our geographic footprint and moving into Canada moving into other spaces and in the States and really Solomon's through what we think is the business model that best supports our clients here and our partners in existing spaces.

Dan Humiston:
I mean with 10 years experience 25 percent market share of the largest market in the world it seems only logical that you would expand that and the industry needs you to expand to do that though it's going to be tricky to do that at a cash flow are you going to be raising any money.

Jeff Grey:
We'll be doing another raise this year. I look at some of it was happening in the industry. I look at consolidation I look at other groups expanding. I look at certain markets opening but obviously it sort of that's three disparate pieces. Some people feel regulation is moving too quickly and obviously it's happening too slowly. So for us I think we've been biding our time if you will as we're looking now we see the same thing as you just brought up which is a need. I think labs are saying support of quality of products supporting quality standards and protecting patient and consumer safety over the course of this year. We have plans to be in some spaces both by expansion of by acquisition and moving on. We'll look to do fundraising to support that.

Dan Humiston:
I'm sure there are a lot of investors that would find your play really attractive. You know it's common and you're going to have governments requiring it. So whether it's acquisitions or organic growth or joint ventures I see you guys as a market leader right now and I think you're in a great position and I'm confident investors will see it the same way.

Jeff Grey:
Yeah. No I appreciate that. It's been a long journey and I'm going to say it's been amazing when we've watched the industry grow so much and feel like we've participating contributed to it. These next steps the business cycles are obviously accelerating right. I mean everything is happening so fast now. We're excited to see it. This is important space to us so we think that the service for providing is providing a tremendous value as we move forward. The people that we look to bring in as partners in expanding this vision really looking for people that see it and very much the same way that we do. Exciting opportunity for us. And so far we've been blessed to have some really good partners on board.

Dan Humiston:
Well we've been speaking with Jeff Grey who is the CEO of sea labs and we have all of their information on the MJBulls Web site and I'm confident when they start their next round of funding that this information will be gobbled up quickly. So Jeff thanks for being on the show today. I appreciate you taking the time to explain testing and more importantly to explain how I see labs is going to move forward with this industry to make it better. Absolutely.

Jeff Grey:
Thanks for having me dan. G

Dan Humiston:
Good luck. Thanks for everything you do Hi. Thank you.

Dan Humiston:
Just a quick reminder that you can become an MJbulls member for just four dollars and ninety nine cents per month and enjoy exclusive access to companies pitch decks and the MJBulls cannabis capital directory. Join today at MJbulls.com.

Dan Humiston:
Thanks for listening to the MJBulls podcast. To learn more about today's guests or to become a guest. Visit our website at MJBulls dot com.

Today's show is produced by MJ bulls media with original music composed by Jamie Humiston. I'm Dan Humiston and you've been listening to the MJBulls podcast.

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