GREEN SCIENTIFIC LABS HOLDINGS INC. Dear Green Scientific Labs Shareholders:
When
We continue to add new locations, clients, build our already robust technology suite all enabling
2022 milestones thus far:
- January
- We received a complete Medical Marijuana Laboratory Registration Certification from the
Arizona Department of Health Services for Medical Marijuana Testing , allowing us to officially begin accepting samples. - We became only 1 of 6 labs licensed to perform full compliance testing on all products for the state.
- Since opening, our
Arizona location has signed up over 75 accounts and seen 100% growth month-over-month.Arizona saw more demand for cannabis than other states in the first year of legalization. It generated$1.9 billion in sales from marijuana products in 2021, far higher than the estimated$1.2 billion . - We completed the build out of our state-of-the-art 9,950 sf facility in
Ann Arbor . - February
- We were informed that our application for DEA registration has met the requirements of the Code of Federal Regulations Title 21 and will be approved by the Miami Field Division. This validates the systems and controls we have built at
Green Scientific Labs . - Analytical labs that process hemp are awaiting a final ruling from DEA Headquarters which will allow the assignment of a DEA number, which we anticipate occurring prior to the end of 2022.
- March
- We received our temporary marijuana facility permit the
City of Ann Arbor, MI. This temporary facility permit is the first step to receiving a full marijuana facility license by the state. Michigan's rapid growth in the past two years has been driven by strong demand with recreational marijuana sales doubling in 2021. - With marijuana sales expected to exceed
$2 billion in 2022,Green Scientific Labs plans to leverage our relationships with multi-state operators ("MSOs") in this massive market. - Our
Davie, FL location had the opportunity to be audited by one of the largest MSOs in the country. This in-depth exercise putGreen Scientific Labs to the test, examining everything from our sample prep methods to data accuracy and replicability to technology. I am pleased to announce that we received the top grade in the entire state which we anticipate will lead to new testing business in bothFlorida andArizona . - We completed our buildout of the state-of-the-art 9,630 sq ft facility in the
City of Mount Laurel , New Jersey and took possession of a suite of Agilent testing instruments to begin the validation process. - April
- We received our Certificate of Occupancy from the
City of Mount Laurel , New Jersey for our recently completed facility. - We anticipate applying for ISO/IEC 17025 accreditation in Q2 and intend to be open for testing in Q3 2022.
- With
New Jersey opening its recreational marijuana market later this month and expected sales reaching nearly$2 billion ,Green Scientific Labs will be one of the early testing laboratories in the state. We believe this will give us great start in the northeast as we prepare to expand intoNew York ,Pennsylvania ,Connecticut , andMassachusetts .
We have continued to improve methods and throughput at all locations. This focus on streamlining processes has had an immediate impact on turnaround time. Currently, we are returning results to clients in less than 3.5 days. We believe this metric exceeds all client expectations and has proven to be a great selling tool when courting new business. In terms of financial impact, this has yielded the following results – increased business, increased client satisfaction and retention, and lower cost of customer acquisition. And this is only the beginning.
Lastly, we are in the final stretch of the development of our proprietary new Laboratory Information Management System (LIMS) and anticipate the completion of bug testing and entering the beta stage within the next 45 days. The new LIMS contains a robust set of cutting-edge features including Artificial Intelligence to ensure compliance with state regulations on COAs, real-time turnaround time (TAT) tracking to identify bottlenecks and to ensure industry-leading testing times, digital batch downloading, and real time audit logs that compile a record of events and changes within the software. We believe the new LIMS is more robust than the industry's current leading software and expect that
As we finalize development of the LIMS, we are also nearing a full integration with Confident Cannabis. We expect this integration will give our clients the ability to view all their testing results in a single location which will address a major pain point for several of the larger MSOs that rely on Confident Cannabis as a data repository. We believe having this type of technology gives
In conclusion, I would like to present my heartfelt thanks and gratitude towards the shareholders as well the team members for their continued support and confidence.
Yours Sincerely,
About Green Scientific Labs
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