Ohio College commits to participation in Cannabis Test Laboratory
Eliminates the need for any changes to the Ohio Medical Marijuana legal framework
Cleveland, Ohio Aug 4, 2017 – CCV Research announced today that it has received a letter of intent from an Ohio public institution of higher education and received confirmation from the Governor’s office that the college qualifies for operating a medical cannabis testing laboratory. At this time, the college name is not being disclosed.
In September 2016, the Ohio legislature passed HB523 created a legal framework for the medical cannabis industry and safe access for Ohioans who stand to benefit from therapeutic use. The Testing laboratories serve as the critical component of the cannabis supply chain, ensuring safety & quality control by testing cannabis products before they are sold to patients.
“We had a difficult time even finding qualified colleges willing to engage in the conversation” stated Dr. Jonathan Cachat, PhD, CEO of CCV Research. “However, we found a unique, entrepreneurial team that recognized the opportunity to provide education with hands on lab experience, create local jobs, and support a functioning medical cannabis system in Ohio.”
Both advocacy groups and regulators have expressed concern over Ohio’s requirement for association with “public institutes of higher education” as most universities receive research money from federal sources. Rather than put this funding at risk, several colleges have opted out from participation in the state-sanctioned system.
“The Ohio legislators did a great job in getting colleges involved to assure an unbiased and controlled approach to testing medical cannabis. Other unregulated states have seen “lab shopping” where cannabis product is being taken to whatever test lab gives the best results,” said Dr. Cachat. “We are very pleased to provide, the State of Ohio, a solution that eliminates the risk of delaying the Ohio Medical Marijuana Program launch by Sept 2018.”
Dr. Cachat has a PhD in Neuroscience and Psychopharmacology from Tulane University, and started his undergraduate studies at Denison University in Granville, Ohio. He is the author of two books on how zebrafish offer an opportunity to perform steadfast scientific investigations in a robust and high-throughput manner for behavioral neuroscience research, specifically the impact of drugs on the human brain and body. This breakthrough research methodology provided drug discovery efforts with a more cost effective and efficient way to do investigational pharmacology research by replacing mammals with zebrafish.
“Dr. Cachat’s research in the psychopharmacology space; along with years of experience managing a DEA-licensed laboratory, handling and investigating Controlled Substance Act Schedule 1-4 drugs, on a college campus, with student technicians, made the conversations a little easier. In addition, the CCV Research team has decades of experience, in starting and running labs, that can be accredited to the ISO 17025 General Requirements for The Competence of Testing and Calibration Laboratories standard, which is required by state law,” stated an unnamed source from the College.
By the year 2020, assuming full legalization, lab testing revenues could approximate $550 million (based upon U.S. marijuana retail revenues forecast) Source. Investors are interested because Cannabis testing labs are highly scalable with opportunity for significant margin expansion and operating leverage can translate to attractive free cash flow yields with recurring revenue streams.
“We are not surprised about the interest by investors,” stated Dr. Cachat, “as the business model is easier to explain when compared to other cannabis investment opportunities. A test lab is more like a manufacturing process which is very well understood by the investment community.”
The CCV Ohio Cannabis Test Laboratory Project is fast paced, as it is critical for launch of the Ohio Medical Marijuana Control Program by Sep 2018; which is just over one year away. Ohio law requires the Ohio Department of Commerce to adopt testing laboratory rules by Sep 8, 2017, or a month from now. The medical testing application was released on July 26, 2017 and applications are due by Sep 22, 2017.
“We want the lab to be operational well in advance of the Sep 2018 deadline so that we can work with cultivators and processors in advance of providing medicinal cannabis to patients,” explained Dr. Cachat.
“Dr. Cachat is certainly one of the most knowledgeable neuroscientist on cannabis in the world. He was born in Avon, Ohio, and we are fortunate to have him bring his world class abilities on medical cannabis back to Ohio,” stated Sir Alan Mooney, from Mooney Financial in Worthington Ohio. Mooney Financial is participating with CCV Research in this exciting medical cannabis lab project.
A press conference announcing the name of the college will be scheduled soon.
ABOUT CCV RESEARCH
CCV Research is an innovative development & management group specializing in the cannabis industry with expertise in the entire cannabis supply chain, and on state and local regulation creation and deployment. Founded by Dr. Jonathan Cachat, recognized as one of the brightest mind in the cannabis industry, the CCV Research Team bring investment, merger / acquisition, business processes for compliance including ISO 9000 and ISO 17025, and business startup expertise.
John M. Cachat