DENVER, CO--(Marketwired - June 13, 2014) - CannLabs, Inc., (formerly SpeedSport Branding, Inc.) (OTCQB: SDSPD), a Nevada corporation, announced today that it completed a reverse merger on June 12, 2014, pursuant to which Carbon Bond Holdings, Inc. ("Carbon Bond"), a Colorado corporation, became a wholly owned subsidiary of the Company. CannLabs will trade on the Over The Counter Bulletin Board ("OTCQB") under the symbol "SDSPD," until on or about July 10, 2014, at which time it will be quoted under the symbol "CANL" on the OTCQB.
CannLabs, Inc. through Carbon Bond, licenses advanced scientific methods combined with proprietary cloud-based technology to cannabis testing facilities, which includes the first state-licensed laboratory in Denver, Colorado. The Company also provides analytics with real-time business intelligence to generate the data necessary for the continued advancement of the entire cannabis business ecosystem. Through its executives and scientists, the Company also provides industry research and information which can be used to make business decisions affecting product quality and safety. Leveraging its expanded research department, the Company will assist clients by providing the expertise needed to help develop incremental revenue opportunities.
The Company, now headquartered in Denver, Colorado, will continue the business of Carbon Bond as its primary line of business. The Company's new management team includes Chief Executive Officer and Board Member, Genifer Murray; President, Chief Operating Officer and Board Member Steve Kilts; and its Chief Financial Officer, Scott McPherson. The Company's Board of Directors now consists of six members, including four newly appointed independent directors, Joe Allbaugh, Ken Johnsen, Mark Mirken, and Mark Rogers, none of whom were directors of CannLabs, Inc. prior to the merger.
Immediately following the closing of the merger, CannLabs completed a private placement of 500,000 shares of its Series A Convertible Preferred Stock in a private offering, resulting in gross proceeds of $500,000. In connection with the private placement, CannLabs also issued warrants to purchase 20,000,000 of its common stock. In addition, the investor entered into a note purchase agreement, pursuant to which the investor agreed to provide $750,000 in additional funding to CannLabs through November 15, 2014. The Company intends to use net proceeds of the private placement, principally for expansion into other states, research and development, patent expenses, general and administrative expenses and carrying out its business plan.
In connection with the private placement, CannLabs has agreed to file a registration statement with the Securities and Exchange Commission covering the resale of the shares of common stock underlying the Series A Convertible Preferred Stock and warrants.
"We have been at the forefront of the sweeping changes across the nation as many states have legalized cannabis. We provide the technology for reliable testing in product quality, data analytics and widely accepted standards which are essential elements to all key constituents in the cannabis industry and this is where we excel," said chief executive officer and founder, Genifer Murray. "There is tremendous value in owning, distributing and extrapolating insights from the data we collect every day. We are deploying a fully integrated business approach to leverage these opportunities and provide enhanced and complete solution for our customers across North America."
In accordance with "reverse merger" accounting treatment, the Company's historical financial statements as of period ends, and for periods ended, prior to the merger will be replaced with the historical financial statements of CannLabs prior to the merger in all future filings with the Securities and Exchange Commission.
The securities sold in the private placement have not been registered under the Securities Act of 1933 and may not be resold absent registration under, or exemption from registration under, such Act.
Additional information on the Company can be found on its web site at www.cannlabs.com. Investor Relations can be contacted at 855-842-6936 or via email at email@example.com
CannLabs, Inc., is a solutions provider with intellectual property, proprietary cloud-based analytics and scientific methods to serve the cannabis industry. Through Carbon Bond Holdings Inc., CannLabs provides laboratories with the necessary business intelligence technology and other solutions required to serve the cannabis industry, and these include the first state-licensed laboratory in Denver, Colorado.
CannLabs enables growers, dispensaries and edible makers to implement best practices while furthering product advancements. In addition, the CannLabs website allows consumers to easily locate certified tested products to meet their specific needs.
CannLabs has been at the forefront of educating the public, in addition to state and local governments as more states legalize marijuana for various uses. The Company provides client education around safe cultivation, identifying contamination problems, consulting on legal cases and the reformulation of cannabis products, throughout the U.S. and Canada.
The Company plans to license their solutions to new labs and other cannabis companies in states and provinces as legislation and testing mandates for legalization are approved. This will allow the Company to further scale its data analytics and consulting business across a broader geographic area. In addition, the CannLabs team will focus on research and development which will further drive value for their customers and provide incremental revenue opportunity.
Safe Harbor Statement
All statements herein other than statements of historical facts are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Such statements are not guarantees of future performance and are subject to known and unknown risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such forward-looking statements. Such factors include, but are not limited to, our ability to raise additional capital, our limited operating history and revenue, our ability to attract and retain qualified personnel, our ability to develop new services, market acceptance of our services, legislative, regulatory and competitive developments in our industry, general economic conditions, as well as other factors set forth in our filings with the SEC.