BERKELEY, Calif., April 22, 2015 /PRNewswire/ -- Steep Hill, the industry leader in cannabis testing and analytics, announced today that it has opened an investment round of $5 million to fuel its continued growth and expansion. The common stock investment round will be offered through the JOBS Act, Section 506(c), a law intended to encourage funding of small businesses by easing certain securities regulations. Prior to 506(c), small businesses largely relied on friends and family, venture capitalists and investment bankers to find investors for their private offerings. Steep Hill is proud to utilize the JOBS Act to democratize access to an investment opportunity in an early-stage company in a truly exciting industry.
In making the announcement, Steep Hill Co-Founder and CEO David Lampach said, "In 2008, we opened the first commercial cannabis testing lab in the US. Since that time, the importance of testing has reached an undeniable tipping point, and we now have labs in 4 states with plans to add labs in two additional states this year. At our headquarters in Berkeley, CA, we have also developed a state-of-the-art genetics lab that recently launched its first product, and we are in the process of rolling out an enhanced version of our proprietary testing equipment, the QuantaCann™. Since our inception, we have raised approximately $4 million and now, to keep pace with this explosive industry, we are seeking to raise the capital necessary to fuel our continued growth."
"We are truly excited about this stock offering," said Steep Hill's General Counsel Mitch Kulick. "Through the JOBS Act we are able to bypass venture capital and private equity 'clubs' that traditionally have gotten the first look at early-stage companies poised for exponential growth. Now that we are permitted by the JOBS Act to use general marketing and social media to reach out to individuals who are accredited investors, we are able to offer the opportunity to invest in Steep Hill to a broader audience. Cannabis has always been a movement of the people and there is no reason why our capital raise should be any different."
Steep Hill intends to use the funds raised in the following ways:
To expand our laboratory presence in 2 additional states and Jamaica in 2015;
To expand our national footprint within many large states as they broaden legalization for cannabis in 2016, including the largest U.S. market, California;
To expand and enhance our existing products, while developing additional cutting-edge products and services, and;
To support our innovative cannabis genetics program and our Ynsight™ Genetics Research Lab, in the search of cannabis genetic family tree, and potential new medical applications.
ABOUT STEEP HILL Founded in California in 2008, Steep Hill is a science and technology firm that has become the industry leader in cannabis testing and analytics. With labs in four states and plans to add labs in New Mexico, Oregon and possibly Jamaica in 2015, Steep Hill is and will continue to be 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.