Pazoo (PZOO): Capitalize on the Fastest Growing, Lowest-Risk Cannabis Niche

SEATTLE, WA / ACCESSWIRE / March 28, 2016 / The cannabis industry is expected to top $40 billion over the next five to ten years, according to Marijuana Business Daily. Café Serendipity (OTC: CAFS) and Marijuana Company of America (OTC: MCOA) may offer investors direct exposure to the drug, but those concerned about potential legal issues may want to stick to ancillary products and services, ranging from Vapor Corp.’s (OTC: VPCO) vaporizers to Cabinet Grow Inc.’s (OTC: CBNT) growing technologies.

GreenWave Advisors predicts that the cannabis testing market will reach $850 million by 2020, processing a little more than five million pounds of marijuana. In fact, GreenWave Advisors Founder Matthew Karnes views cannabis testing as “the most attractive subset of the industry”. Bank of America analysts echoed these views in a recent report that predicting the testing space would grow to $800-900 million by 2020 and become one of the most attractive sectors.

Over the past couple of years, there have been a number of high-profile recalls and other incidents arising from the lack of cannabis testing standards. State regulators have taken notice and started to introduce stricter testing standards in order to ensure consumer safety. For example, Nevada introduced some of the strictest testing standards in the country, while Colorado and Oregon have steadily introduced more requirements to their existing programs.

Industry Leader in Cannabis Testing:

There are relatively few publicly-traded companies in the cannabis testing space, but there is a very well-known private company in the space. Steep Hill Labs opened the first commercial cannabis lab in the U.S. back in 2008 and has since become the world’s largest provider of testing services with company-owned labs in Berkley, CA, Seattle, WA, and Albuquerque, NM and licensed labs in Denver, CO, Las Vegas, NV, and Portland, OR.

Pazoo Inc.’s (OTC: PZOO) wholly-owned subsidiary, Harris Lee, and MA & Associates, has an exclusive licensing agreement with Steep Hill Labs. Under the agreement, the company has access to industry leading testing protocols and right of first refusal to open new labs across the country. The company has already licensed to test in Nevada and Oregon, while operating a revenue-generating testing facility located in Denver, CO with its licensee, Harris Lee Colorado.

In essence, Pazoo has reduced the risks associated with developing its own testing methodologies and implementing a go-to market strategy by leveraging Steep Hill as a strategic partner. The company’s publicly-traded status also provides the capital necessary to establish and grow laboratories across multiple states, which puts management in a unique position to scale its operations and establish a premier cannabis testing network.

Revenue Generating Operations:

Pazoo is unique among many cannabis investment opportunities with its existing revenue-generating operations. While revenue hasn’t yet appeared in its most recent 10-Q filings, the recent partnership of an existing and revenue generating Denver cannabis testing facility should appear in its second quarter 2016 financial results. These revenues could be fairly significant given the reduction of testing facilities in the city following the closure of CannLabs’ facility.

“This truly is the watershed moment that we have been working towards,” said Pazoo Inc. CEO David Cunic after acquiring the Denver lab. “We have now officially transitioned from an early stage company to an aggressive growth stage company. We are ecstatic that we have not only immediately seen a dramatic daily increase in revenue, but because we expect to experience exponential accelerated growth rates for the foreseeable future.”

The company also formed another wholly-owned subsidiary – CannabisKing Distribution LLC – that distributes ancillary non-regulated products at various testing laboratories throughout the country. Following the partnership of its Denver-based laboratory, the company will begin selling these products as a way to incrementally increase its revenue by leveraging its relationships with dispensaries and growers.

Future Expansion Opportunities:

Pazoo’s long-term plan is to expand into many different states leveraging the Steep Hill Labs brand name and testing methodology. In addition, the company has been actively developing its own proprietary testing methodology that it hopes to apply in these labs to grow the business.

In the near future, the company plans to open up its next lab in Las Vegas, NV where it has an existing provisional approval from the state. Nevada’s strict testing standards make it a great state to set the stage for approvals in other states, while the potential for adult-use legalization following the 2016 election cycle could open the door to significantly greater opportunities. After all, Las Vegas is a leading tourist destination in the U.S.

The company may have experienced a rough year in 2015, but it’s now on a path to sustainable growth. Under the leadership of CEO David Cunic, the company streamlined its spending and executed on its goals to acquire the Denver lab and accelerate its future growth plans. Investors interested in this promising sub-sector of the cannabis industry may want to take a look at Pazoo as a compelling opportunity in the space moving forward.

For more information, visit the company’s website at www.pazoo.com. 

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Legal Disclaimer:

Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Important factors that could cause these differences include, but are not limited to, the demand for the company’s services, governmental regulation of the cannabis industry, and the company’s ability to execute its business plan. Emerging Growth LLC dba TDM Financial, which owns CFN Media, is not registered with any financial or securities regulatory authority, and does not provide nor claim to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CFN Media, may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.

SOURCE: CFN Media

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