Cannalysis Raises $22.6 Million for Vaping Tests

Cannalysis, a testing company for cannabis, has raised $22.6 million in a new round of financing as it prepares to bring a new test for vaping additives to the market.

The test, which the company is preparing to unveil later this week, will test for the presence and amount of Vitamin E acetate, a chemical compound that may be linked to the vaping-related illness that has swept through the United States in recent weeks.

Brian Lannon, Cannalysis chief executive, said the new product was developed in response to the current crisis in the cannabis industry over illnesses related to vaping products.

“The big story that’s been going out over the last week isn’t the product that’s going out in cannabis, but an additive called Vitamin E acetate. We have developed a test for that,” Lannon explained. “As part of the different compliance testing that’s required, it’s not mandated to test for any of these additives… What I’m anticipating based on the phone calls we’ve been getting is that a lot of our customers want to get the test to show that they’re not using this stuff.”

While testing variance is a problem in the industry, Cannalysis says its highly automated lab along with the integrated software services it offers exceeds the standards for ISO accreditation.

CanLab, the nation’s largest testing service, has committed to $22 million as a strategic investor.

Lannon said this investment will be used to expand into new markets.