Next Gen Metals sets up second subsidiary
2014-05-06 08:41 ET - News Release
Shares issued 17,365,946
N Close 2014-05-05 C$ 0.225
Mr. Harry Barr reports
NEXT GEN ESTABLISHES ITS SECOND 100% OWNED SUBSIDIARY, GREENRUSH ANALYTICAL LABORATORIES INC.
Next Gen Metals Inc. has established its second 100-per-cent-owned subsidiary, GreenRush Analytical Laboratories Inc. The mission of GreenRush Analytical Laboratories Inc. is to provide analytical testing for the legal cannabis industry in North America by delivering customized solutions and accurate analytical results to the company's clients.
Next Gen's competitive advantages include:
- Management's financial contacts to raise venture capital;
- Management's ability to efficiently manage both public and private companies on an international scale;
- Management's ability to negotiate equitable deals for shareholders and partners;
- Management's ability to complete its objectives on time and on budget.
GAL is organizing a team of scientists and laboratory technicians to staff the company's first laboratory. Simultaneously, GAL's management continues to meet with targeted underfinanced analytical laboratory opportunities for possible mergers and acquisitions.
With over 300 combined years of experience and managing public and private companies, negotiating complex deals, and raising venture capital, the company's management team has completed over 300 option/joint venture agreements with major, mid-tier and junior companies and has raised over $250-million in equity to advance projects across the world. Harry Barr, president and chief executive officer, stated: "New laws and legislations in Canada and in the United States allow production of legal/medical marijuana. An increasing number of U.S. states have allowed licensed producers to produce medical marijuana. Additionally, to date, two states have legalized recreational marijuana. In canada, new federal laws (April 1, 2014) allowed for licensed producers to establish new legal marijuana grow-up operations to produce marijuana. To that end, and as of today, there are currently 13 licensed producers in Canada and over 650 applications in progress.
"This unpredicted growth in this new multibillion-dollar industry has allowed the directors and management of Next Gen to provide an increasing number of financial solutions for the medical marijuana and industrial hemp industries."
Management is currently in the process of assessing and selecting initial locations and jurisdictions to establish the laboratories. Management's objective is to initiate analytical laboratories in areas with the greatest concentration of licensed producers in both the legal medical marijuana and industrial hemp industries.
Market demand
Under the new MMPR program, companies that wish to grow and sell medical marijuana must follow a strict set of rules, including quality control and data-keeping protocols. For example, each batch of cannabis must be tested for pesticides, mould and contaminants, in addition to chemical composition, before being sold. New standards for quality control and quality assurance in the United States and in Canada are deriving increased demand for these analytical tests and procedures.
Three main purposes for medical cannabis and industrial hemp testing are:
- Health Canada requirements;
- Patient and consumer safety;
- Limiting liability for licensed producers.
Market size
Health Canada estimates that the market could be worth $1.3-billion by 2024. Analysts and industry experts peg estimates to be closer to $2.6-billion by 2016. The medical community, health givers and patients demand product testing to understand the safety and the strength of a particular product and to find the best medicine to alleviate their particular ailments. In light of Next Gen's vision and having completed its first two investments, management's objective is to invest in a basket of companies within this growing industry. The company's business model continues to generate new business plans and project submittals 24-seven.
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