ACT Laboratories, a lab testing company in the legal cannabis and hemp markets, today announced an agreement to acquire CDX Analytics of Massachusetts to continue its geographic expansion.
"ACT Labs is out to build the foremost, multistate cannabis lab testing partner for cultivators, processors, dispensaries, and brands, and we're delighted that CDX is joining forces with us," said Cornelius Merlini, Board Member and acting CEO of ACT Labs and a Managing Partner of Intrinsic Capital Partners. "Expanding our footprint not only enables us to take better advantage of our investments in new technology, but also allows us to better anticipate regulatory trends and leverage standardized, best practices across our network. As we do, expansive testing capabilities will help ensure a more predictable supply of consistent, differentiated products and brands that fuel growth for our customers."
CDX Analytics recently doubled its testing capacity in its Massachusetts lab to meet growing customer demand. With this acquisition, ACT Labs will be operational in six states: Illinois, Massachusetts, Michigan, New York, Ohio and Pennsylvania. Additionally, ACT Labs is evaluating other key markets for organic expansion, and will likely be live in seven states by early 2023.
"We're excited to become part of such a strong team of chemists, microbiologists, researchers, and senior leaders with extensive knowledge of the pharmaceutical industry," said Dr. Brian J. Strasnick, CEO & President of CDX Analytics. "The rapid growth and regulatory evolution of the cannabis industry will require a suite of consultative solutions that span testing, quality, formulation, and facility monitoring to optimize processes, manage risk, and drive speed to market. As part of ACT Labs, we will bring all of these to our Massachusetts customers."
The closure of the deal is subject to regulatory approval in the Commonwealth of Massachusetts.