Profitable, Fully Compliant Cannabis & Hemp Testing Laboratory; Good Cash Flow Opportunity

CannaMLS ID: 12544
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Price: $3,100,000

Listing Details

Listing Category
Testing Facility

License Status
Municipal / local license granted
State / annual license granted


Adult Use

Price: $3,100,000

Listing Status: For Sale

Opportunity to acquire a leading cannabis testing laboratory in Southern California. One of a select group of established labs with a consistent track record of strong financial performance and highly loyal customer base. This exceptionally well-run lab is capable of performing the complete range of California cannabis testing and is fully compliant with the California Department of Cannabis Control’s (DCC) new standardized cannabinoids test method and standardized operating procedures. ISO accredited and equipped with top line Shimadzu and Agilent instruments. The staff is highly experienced in cannabis testing procedures and all of the testing methods are validated. There is a comprehensive set of SOP’s that define the testing methods, overseen by rigorous quality standards. In addition, the lab offers environmental monitoring and related services. Located in proximity to major freeways, the lab services customers throughout California. With the labs’ strong reputation for reliability and quality, it has an established customer base with very low turnover. As the California cannabis testing lab market continues to rationalize, this lab is poised for significant growth in the next few years. For a buyer interested in acquiring a testing lab that needs very little attention to operate and would show highly favorable returns on additional sales and marketing effort, this is the right opportunity. 25 Employees.  Seller is amenable to seller financing for a portion of the purchase price. The 6,000 sq. ft. facility is in an industrial multi-tenant property. NNN lease at $9,800 per month expires June 30, 2025, but can be extended in two year increments through June 30, 2033. $400/month water charge. The lab is fully equipped with industry standard instrumentation from Shimadzu and Agilent that covers all required and prospective testing requirements, all purchased new. All of the instruments are covered with maintenance contracts. There are approximately 30 active testing laboratories covering California’s $5 Billion cannabis market. With recent regulations aimed at standardizing testing methods, the major competition is the stronger, well established labs like this business. Current operations can support 50% growth with approximately 20% increase in overall expense. Testing supplies are 15% of revenue. With a reasonable investment in equipment and some additional staff, this lab could double its testing throughput and revenue in the existing operational footprint. As the California cannabis market rationalizes and marginal testing companies leave the space, this lab is strongly positioned to acquire those customers. There is room for growth within the complex and a buyer could duplicate the labs highly effective processes. NDA and POF required.

Listing Details

Listing Status
For Sale

Los Angeles, California 91605

Date Listed For Sale:

Date Last Updated:

Generating Revenue:


Property Details

Buiding Size (sq ft)
6000 sq ft

Built out / Turnkey

Equipment Included

Green Zone Confirmed

Pricing Details

Listing Price

Seller Financing Available?

Property Lease Rate

Lease Terms:

The 6,000 sq. ft. facility is in an industrial multi-tenant property. NNN lease at $9,800 per month expires June 30, 2025, but can be extended in two year increments through June 30, 2033.





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