CANL: A Soap Opera?

12/01/2015 9:41 am EST

Focus: CANNABIS INVESTMENTS

Michael Berger

President & Founder, Technical420.com

Michael Berger, of Technical420.com, outlines why he feels that the recent illegal pesticide findings in Colorado—coupled with news out of this cannabis company—make it almost necessary for government oversight.

The Colorado cannabis industry is facing a new hurdle after illegal pesticides were found in marijuana products being sold to the public. This finding has lead to product recalls, plant quarantines, and a lawsuit involving people who said they would not have consumed the product if they knew illegal pesticides were used on them.

The opaque regulatory environment of the cannabis industry has forced many businesses to self-regulate pesticide use. Although state officials have said they are developing a plan to oversee this, pesticide testing is not mandatory for Colorado cannabis businesses.

Situation Gets Worse

As if the situation in Colorado was not bad enough, CannLabs, Inc. (CANL) announced that it had terminated its agreement with its subsidiary, Carbon Bond Holdings. CANL shut down operations in its Colorado cannabis testing laboratory and the company no longer has any cannabis testing facilities in the state. 

In early October, CANL disclosed the termination of CEO Genifer Murray through the filing of an 8-K with the SEC. A month before the filing, the company’s board of directors terminated Murray’s employment agreement due to a breach of fiduciary duties. The board said that Murray did not act in the best interests of shareholders and frequently disclosed confidential information to third parties.

The recent developments at CANL make the company look more like a soap opera, not a public company. The company says that they have a cannabis testing facility in Connecticut and Nevada, but we do not believe this to be factual. In early 2015, CANL announced that they were opening the laboratory; however, the company has not announced any new developments since then. 

What to Expect Going Forward

The recent findings in Colorado, coupled with the news out of CANL, make it almost necessary for government oversight. Although the United States government wants no part of the cannabis industry right now, they continue to put people at risk.

If the government does not step in and find a way to fix the banking needs and testing needs, consumers will end up paying the price. The marijuana train has left the station and it has gone too far to bring it back. It is time for the government to step up to the plate and bring cannabis fully into the mainstream.

Michael Berger, Founder and President, Technical420.com

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