Gala Pharmaceutical, Inc. 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 Company believes that Californi’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.