Gala Pharmaceutical Positioned to Significantly Benefit From California’s Cannabis Testing Regulations

Company Plans to Develop Network of State-of-the-Art Cannabis Testing Labs As it Capitalizes on Current Bottleneck Caused by Regulatory Environment

Irvine, California, UNITED STATES

IRVINE, Calif., Aug. 28, 2018 (GLOBE NEWSWIRE) -- Gala Pharmaceutical, Inc. (OTC: GLPH), an emerging cannabis testing company, today announced that it plans to develop a network of cannabis testing laboratories in an effort to capitalize on the bottleneck caused by California’s stringent cannabis testing regulations. 

The Company, through its subsidiary Gala Pharmaceutical California, Inc., having its application to operate a TYPE 8 Medical Cannabis Testing Lab been deemed complete by the City of Long Beach, is moving forward on its Department Review portion of the application process. The Company, anticipating the approval of its initial corporate owned cannabis laboratory in the city of Long Beach, is actively seeking its second and third testing facilities in Southern California by year-end.  Management feels that Gala Pharmaceutical California, Inc. has certain unique competitive advantages, such as its highly experienced scientific team, access to growth capital, could position the Company at the forefront of a highly fragmented market.

Cannabis testing laboratories are responsible for the analysis of potency, residual pesticides, heavy metals, microbial contamination, residual solvents, moisture content, and foreign contaminants. Industry figures clearly indicated that the current bottleneck in the cannabis industry is being caused by the lack of sufficient facilities to keep up with testing demand.

“The roll-out of our expansion plans for our cannabis testing laboratories will represent one of the most important milestones in our company’s history,” said Dr. Rehman, Chief Executive Officer of Gala Pharmaceutical, Inc.  GPI has made significant investments over the past few years in building the first testing laboratory in the city of Long Beach.  “Our ability to enter this market better prepared both operationally and financially should enable us to emerge as one of the dominant players in one of the fastest growing sectors of the multi-billion-dollar cannabis industry,” concluded Mr. Rehman.

Gala’s Expansion Plans Expected to Benefit from Regulatory Environment

The Company believes that California’s cannabis testing regulations, which are expected to phase in throughout the year with the last round expected to be in effect by December 31, 2018, have created an extremely favorable business environment to launch its expansion plans. In addition, with nearly 40 million residents and greater than one million medical marijuana patients, California's cannabis market has already grown to represent more than a third of North America’s entire cannabis market. Analysts at Cowen & Company believe the nation's legal cannabis industry could reach $50 billion by 2026, with California accounting for about $25 billion of that market.

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About Gala Pharmaceutical Inc.
Gala Pharmaceutical, Inc. (OTC: GLPH) is a publicly traded company that provides innovative tools for analytical testing laboratories. GPI is looking forward to developing high throughput screening technologies for chemical, plant, soil, and liquid composition analysis which will allow assay development for key compositional traits and provide quality services to various customers in the agricultural industry.

Disclaimer: The Company relies upon the Safe Harbor Laws of 1933, 1934 and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the company’s best judgment based upon current information and involve several risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the company include, but are not limited to, government regulation; managing and maintaining growth; the effect of adverse publicity; litigation; competition; and other factors which may be identified from time to time in the company’s public announcements.

Investor/Media Contact: 
Bill Miller 
Phone: 844-565-5665