BERKELEY, Calif., Nov. 9, 2015 /PRNewswire/ -- Steep Hill, the industry leader in cannabis testing and analytics in the US and internationally, announces that its current investment round which launched at a $10M pre-money valuation is set to expire no later than December 31, 2015 as Steep Hill receives strategic support and investments from institutional cannabis investors Delft Blue Horizons (Netherlands), Phyto Partners (Florida), and Poseidon Asset Management (California). Steep Hill also received an investment from Primex Clinical Laboratories, Inc., a prominent healthcare laboratory based in Southern California. These investors, coupled with other Accredited Investors, have recently brought approximately $2 million in new funding to Steep Hill, which will support expanded testing services in addition to new research and product development.
Steep Hill is continuing to raise investment capital at the currently-established valuation, which represented a pre-money valuation of approximately $10 million at the beginning of the offering, for the remainder of 2015, and invites interested investors to meet management at The ArcView Group Investor Pitch Forum in Las Vegas on Monday, November 9th and Tuesday, November 10th. Tours at Steep Hill's licensed facility in Las Vegas will also be offered on Wednesday, November 11th, by appointment. Please call 415-420-1573 for more information.
Steep Hill believes the addition of strategic, institutional investors and the capital raised in the current offering position Steep Hill well to capitalize on the increase in sample volumes that are expected to result from the recently adopted Medical Marijuana Regulation and Safety Act of 2015 in California. That Act, when implemented, will establish a robust regulatory program in California for the first time since passage of medical marijuana laws in 1996. Included in these new regulations is the mandate that any and all products that are put into the stream of commerce as medical marijuana must first be tested by a 3rd party laboratory. California is currently estimated to represent more than 50% of the legal cannabis market in the US.
"We are grateful for the confidence this very respected group of investors has placed in us and our work at Steep Hill," said David Lampach, CEO and Co-Founder. "We believe the valuation of this round has been made more attractive to investors due to recent legislative changes in California, Washington State and New Mexico."
Morgan and Emily Paxhia, Founding Partners of Poseidon Asset Management said, "We have been deeply involved in making strategic cannabis investments in preparation for such milestones as the Medical Marijuana Regulation and Safety Act of 2015 and believe the best returns on investment will be those companies that are best positioned in advance of such enactment – Steep Hill is one of those companies."
Jmîchaeĺe Keller, Delft Blue Horizons Managing Director commented, "We were fortunate to learn about Steep Hill at the ArcView Investors Conference in April, and our relationship has only deepened over the last several months as the opportunities for testing have exploded. We see exciting new product differentiation in the testing market in the near future."
Phyto Managing Partner Larry Schnurmacher remarked, "Phyto is focused on providing capital to entrepreneurs, startups and operating businesses in the cannabis market – we believe that all roads lead through testing in a regulated market and Steep Hill is a cornerstone investment for us."
Primex Clinical Laboratories CEO Oshin Harootoonian said, "We recognize that the future of the legalized cannabis market in California is going to require top-notch quality assurance testing. After months of due diligence, we believe that Steep Hill is at the top of their field, and are true pioneers of the space. We look forward to working closely with them as the cannabis industry matures in California."
For more information about cannabis testing or investing in the company, please visit the Steep Hill website: http://steephill.com
ABOUT STEEP HILL
Founded in California in 2008, Steep Hill Labs, Inc. is a science and technology firm that has become the industry leader in cannabis testing and analytics. With labs in five states—soon to be six with Oregon launching in January 2016—and a joint venture with the University of Technology in Jamaica—Steep Hill is the largest cannabis lab network in the world. The company pioneered the first medical cannabis potency and microbiological contaminants testing methodology for use in California—the first state to legalize medical cannabis. Steep Hill has since developed a variety of revolutionary cannabis testing products, including QuantaCann™, QuantaCann2™ and GenKit™. Steep Hill provides expert consulting services to many states, countries and municipalities, and the company is developing proprietary genetic testing, mapping and trademark protection services for the industry as well.
ABOUT DELFT BLUE HORIZONS
Delft Blue Horizons B.V. is a Dutch family office, focused on discovering and investing in passionate entrepreneurs seeking Angel and Private Venture Capital funding where our depth of experience in Corporate Culture, Organizational Transformation, Entrepreneurial Finance, Business Intelligence, Agile Software Development and Digital Marketing can be leveraged to create a Fast Track to success.
ABOUT PHYTO PARTNERS
Phyto Partners is a venture capital fund that invests in businesses that operate in and around the burgeoning cannabis industry. The Phyto team provides strategic business resources to companies that participate in the business of Cannabis.
ABOUT POSEIDON ASSET MANAGEMENT
Poseidon Asset Management, LLC is one of the longest running investment firms focused on the cannabis industry. The fund is an actively managed, diversified approach to the cannabis industry. Investing in this industry demands exponentially more time and energy than most of investors would prefer. The team aims to remove this "friction" by providing clients with access to our carefully curated portfolio focusing on the cannabis industry. Poseidon is dedicated to putting capital to work funding the most promising ventures in the industry and allowing investors to grow with them. The team is committed to growing with the burgeoning cannabis industry in an honest, responsible, non-exploitative way. Poseidon pledges to work toward changing the old, outdated perceptions of cannabis as a danger to society, and to replace that idea, through education and example, with a positive one. Poseidon is committed to showing that good cannabis can render as a medicine, for adult use, and as a material that can aid humans in living sustainably and responsibly in communion with all the other beings of this planet.
ABOUT PRIMEX CLINICAL LABORATORIES
Primex Clinical Laboratories, Inc. is a clinical diagnostic laboratory that is dedicated to providing the highest quality human health laboratory services to its clients and their patients. As a leader in the medical testing field, Primex employs the latest innovations, techniques and ISO-compliance. Primex's goal is to be the laboratory of choice for high quality, reliable diagnostic testing. Primex provides clinical diagnostic testing services to thousands of clients throughout Central and Southern California, Nevada, Guam and Micronesian Islands.
Portions of this release that relate to future plans, events or performance are forward-looking statements. Actual results, events or performance may differ materially. We caution you not to place undue reliance upon these forward-looking statements, which speak only as of the date of this release. All such statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: the implementation of regulatory changes affecting our business, our ability to manage working capital and secure additional financing as needed, and our ability to attract and retain key employees. These or other uncertainties may cause our actual future results to be materially different than those expressed in forward-looking statements contained in this release. We do not undertake any obligation to revise these forward-looking statements to reflect events or circumstances after the date of this release.
The offering referenced in this release hereby has not been registered with the Securities and Exchange Commission (the "SEC") under the Securities Act of 1933, as amended (the "1933 Act"), or under the securities laws of any US states or non-US jurisdiction, nor has the SEC or any US state or non- US securities commission or regulatory authority passed upon the merits or given its approval to the securities we are offering or the terms of the offering. The offering and sale of the offered securities are being made pursuant to exemptions from the registration requirements of 1933 Act and only accredited investors, as defined in Rule 501 of Regulation D under the 1933 Act, will be eligible to participate in this offering. This release does not constitute an offer or solicitation in any state or other jurisdiction in which an offer or solicitation is not authorized.
Contact: Cathie Bennett Warner cell: 415-420-1573 [email protected]
SOURCE Steep Hill