VANCOUVER, British Columbia, Sept. 06, 2018 (GLOBE NEWSWIRE) -- Goldrea Resources Corp. (“Goldrea” or the “Company”) (CSE:GOR) (Frankfurt:GOJ) (Pink Sheets:GORAF)
Goldrea Resources Corp. (“Goldrea” or the “Company”) is pleased to announce the signing of a binding Letter of Intent (“LOI”) with XChemistry Holdings, Inc. (“XChemistry or XChem”) headquartered in San Diego, California. The primary business of XChemistry is focused on providing compliance testing for cannabis products. On January 1, 2018, new cannabis guidelines became effective in the state of California, after legalizing its recreational use. It is XChem’s plan, partnering with Goldrea, to build a laboratory testing facility in the Greater Los Angeles area. The lab is expected to be completed in a minimum of four months, and after city and state requirements are fulfilled, be fully operational approximately two months following.
The market for cannabis products in California has been forecasted to surpass five billion dollars in 2019. California mandates that samples from every type of cannabis be tested for impurities from a licensed laboratory. At a cost of estimated $400 per sampling, this provides a lucrative source of revenue for an efficient and high capacity facility the XChem team will be building. Only lab-tested products may be sold by licensed retailers as of July 1, 2018. With this new regulation in effect, there is a shortage of testing services, causing long wait times for results, leading to delays in selling of product and possible spoilage. This provides an immediate market for XChem participation. The cost of construction of the lab and becoming operational is estimated to be three million dollars (CDN.)
XChem has an experienced group of experts in the field that will construct and operate the new facility. Chuck Nokes, CEO of XChem, states, “We are excited to have found the right fit with Goldrea and now look forward to quickly moving this LOI forward to a Definitive Agreement and begin the construction of a working laboratory that will fulfill a percentage of a massive need in the coming years. We fully expect to play a major role in this field, along with future projects in DNA and non-cannabis application. Our planned partnership with Goldrea gives us the public platform from which to build out our business plan efficiently and effectively.