Steep Hill Inc. has made the decision close its analytical testing facility in Scarborough, Ontario on September 1, 2022. Over the past six months, the Canadian cannabis focused analytical testing market has suffered from significant price discounting and lab-shopping for desired results. In addition, excess capacity and lack of profitability of Licenced Producers (growers) continues to impact service providers/vendors such as MSC.

Decreasing margins and increased operating costs of a GMP laboratory in an inflationary market have made its operations unsustainable in Canada. The closing of MSC, will enable Steep Hill to focus on the US business. Management is pursuing both organic growth and acquisition opportunities while maintaining focus on preserving capital.

Steep Hill will continue to evaluate the Canadian market for opportunities that align with the future direction of the business.