Steep Hill Labs Disbands in Massachusetts, New Jersey, and Pennsylvania
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Steep Hill, the cannabis testing company with labs in multiple US states, has announced that it has reached a “termination agreement” that will effectively disband the company.
In a statement published on March 2, the company said it has returned the licenses of several labs to Green Analytics in return for two million dollars.
“Steep Hill US intends to use the transaction proceeds to pay its long-term liabilities and for general corporate purposes,” the company said in a statement.
As a result of the termination agreement, since February 28, Steep Hill has had no continuing licensed operations in the states of Massachusetts, New Jersey, and Pennsylvania and will continue not engaging in any such activities in Maryland.
The first three states were key to Steep Hill’s success. Combined, the labs in Massachusetts, New Jersey, and Pennsylvania accounted for around 83% of the company’s total royalty revenues in 2022.
With these operations now separate from Steep Hill, the company is said to be evaluating its new direction.
“As a consequence of the termination of the licenses provided for in the Termination Agreement, the Company expects that future license revenues from Steep Hill US's remaining business will be insufficient to support Steep Hill US's continued operations in its current form,” the statement from Steep Hill reads.
“Accordingly, the Company is currently evaluating its strategic options for Steep Hill US and the Company as a whole, including potential transactions of a transformative nature.”