(Photo from Alchemy Analytics)
- Company leaders said without this restructuring, neither lab would have the operational scale necessary to remain viable in the Mississippi market as demand in the state’s medical cannabis program has not met initial projections.
Steep Hill Mississippi, the state’s first and largest cannabis testing laboratory, is merging with Alchemy Analytics, the only other cannabis testing laboratory operating in the Magnolia State.
The two testing laboratory companies will combine to form Southern Precision Analytics, a Mississippi-based LLC.
Mississippi requires potency, pesticide, microbial, heavy metals, mycotoxin, and residual solvent testing before products can be sold to dispensaries. All testing must be performed by a state-licensed laboratory.
The Steep Hill and Alchemy Analytics laboratories will keep their own facilities, employees, and compliance standards, while the back-office and administrative functions will consolidate. This merger will not require any changes to client relationships, submission processes, or reporting structures, the companies said Thursday.
Allen Whitt, the current CEO of Steep Hill, will also be CEO of the new organization.
“The restructuring is about protecting the integrity and continuity of Mississippi’s medical cannabis program. By joining administrative and back-office functions, we can reduce costly overhead and continue to focus on accurate, precise testing and customer service,” Whitt said in a statement. “Without this restructuring, neither lab would have the operational scale necessary to remain viable in this market.”
Company leaders said their consolidation comes as Mississippi’s medical cannabis program fell short of initial projections. The program was expected to have about 100,000 patient cardholders by the third year, but there are reportedly 69,476 current active cardholders.
Seven cannabis testing laboratories were licensed when Mississippi’s medical cannabis program launched in 2023. Today, only Steep Hill Mississippi and Alchemy Analytics remain in operation.
After the merger is complete, the newly formed Southern Precision Analytics will become Mississippi’s sole cannabis testing company, operating the state’s two laboratory locations.
