The parent company of CannLabs, which runs a state-licensed cannibis testing lab in Colorado, on Friday completed a reverse merger to become a publicly traded company.
Carbon Bond Holdings became a wholly owned subsidiary of SpeedSport Branding, a California company that, according to Bloomberg News, purchases or leases motorsport racecars and competes in organized racing events.
SpeedSport changed its name to CannLabs in advance of the deal. The company will trade on the over-the-counter bulletin board under the symbol SDSPD until July 10, when the symbol will change to CANL, CannLabs said in a news release.
The stock opened Friday at $1.50 and dropped as low as $1.17 a share in early trading.
After the merger closed, the company completed a private stock placement to raise $500,000, and issued warrants to an investor who has agreed to provide $750,000 in cash through Nov. 15. The company said it expects to use the money to expand into other states and to cover research and development and patent expenses, as will as for general business operations.
CannLabs also named a new board, which includes founder and CEO Genifer Murray; president and chief operating officer Steve Kilts, as well as four independent directors — Joe Allbaugh, Ken Johnsen, Mark Mirken, and Mark Rogers. Scott McPherson is the company’s chief financial officer.