Report on the Period – 4th Quarter 2023
We are pleased to release a new report on the developments of the past months. As indicated in the last report, we are currently in the process of significantly expanding the CeBioLabs system. In this report, we will provide all the details regarding these expansions. However, we would like to first wish our community a Merry Christmas and a Happy New Year 2024. We’ve had a tumultuous and exciting year in 2023, which we consider successful. The foundation laid this year will position us as a significant player in the cannabis and CBD industry in 2024, not only in Germany but also globally. More on this in the last section of this report.
We are funded by the German government!
We are excited to announce that our company, “CeBiol Blockchain Solutions GmbH,” is being financially supported by the German federal government for the development activities of CeBioLabs. Our developments and innovative approaches in the field of blockchain have been selected to receive financial support.
Our BSFZ Seal: The BSFZ seal allows companies to demonstrate their innovation competence in external representation. The seal is exclusively awarded by the Certification Center for Research Allowance (BSFZ). Companies receive the seal from BSFZ when they are eligible for research allowance. They are eligible if BSFZ confirms that they are involved in research and development.
What Are We Receiving? With the new innovation funding instrument, the “tax research allowance,” the German government aims to enhance the attractiveness of Germany as a location for new settlements and investment decisions. By 2025, the goal is to increase average investments in research and development from the current 3% to 3.5% of corporate turnover. With the Research Allowance Act (FZulG), companies can receive tax benefits of up to one million euros for investing in research and development.
We are delighted that our innovative ideas are appreciated and supported. We also look forward to this financial support, which will be fully utilized for our developments and further activities for CeBioLabs. Once the disbursement of this innovation grant takes place, we will, of course, inform our community. To showcase our state-confirmed innovation competence externally, we will integrate the BSFZ seal on our website and share it across our social media channels as soon as the funds are disbursed.
Expansion of “CeBioLabs SCM”
Since our ICO, our team has been diligently working on our planned and partially launched projects. We are currently in the beta programming phase of the CeBioLabs SCM system, and we will complete it in the coming year. Contrary to our initial plans, we have made some adjustments to the conceptual scope of the system. This is because the German federal government has taken the path of legalizing cannabis for recreational purposes and is on the verge of officially passing the Cannabis Act (CanG).
Based on this development, we have adapted the CeBioLabs SCM system and developed it as a modular comprehensive suite. This allows us to enter the immediately opening German market and secure a share with our system. Furthermore, we have, in close collaboration with the cannabis community, implemented a Seed-to-Sale system specifically designed for the recreational cannabis market as a modular component in the overall suite, “CeBioLabs SCM.” This positions us to enter the German market directly and offer our system to Cannabis Social Clubs.
Background: The legalization of recreational cannabis in Germany will occur in phases. In the first step, in 2024, the cultivation and distribution of cannabis will be allowed in so-called “Cannabis Social Clubs.” This legalization or decriminalization will open a new market for entities that require immutable and secure systems for tracking the production steps of cannabis.
We have already built a large sales team and will commence direct sales of the modular CeBioLabs SCM, especially focusing on the Seed-to-Sale module, in Q1 2024. This allows us to address not only the planned global sales of “CeBioLabs SCM” but also a direct market in Germany, generating unplanned revenues. Our team, comprising over 20 developers, is working to complete this comprehensive tool in the coming year. In addition to the planned Supply Chain Management system for CBD and cannabis products, “CeBioLabs SCM,” we will immediately develop and distribute additional systems for cannabis cultivation after the launch. While we will increasingly leverage blockchain technology, we will also incorporate artificial intelligence. Conceptual preparations for this are already underway, and our team will proceed with the development of other systems after the launch of the CeBioLabs SCM system. This will enable us to tap into new markets and monetize our expertise in these areas.
Expansion of Our Company Activities
As previously mentioned, CeBioLabs will expand its activities and become active in the cannabis sector. When our company was founded, the legalization of recreational cannabis was unrealistic and not planned. However, as the German federal government actively pursued and specified the path of cannabis legalization, CeBioLabs positioned itself more broadly. Therefore, CeBioLabs will continue to drive the development of announced systems for the CBD and cannabis market, but will also initiate actively projects in other areas. One of these projects, initiated recently, will be announced shortly. Due to confidentiality clauses and strategic aspects, we will not provide detailed information at this point. However, CeBioLabs, as a company ecosystem, will benefit significantly and solidify its strategic position. Additionally, we expect an increase in the use of the CBSL token, which may lead to a corresponding development in the market price. We are fully committed to strengthening CeBioLabs and establishing it as a prominent player in the cannabis industry. Detailed information about this initiative is expected to be released in Q1 2024.
Extension of Token Lock Periods
Immediately after the conclusion of our ICO, we published our current tokenomics in October 2022 (all information available here: https://cebiolabs.io/tokenomics/). We announced that 75,400,440 CBSL tokens are locked. We have kept our operational costs low so far and have not sold any CBSL tokens to ensure the organic growth of the token. We will continue not to change this approach in the coming months and will not sell any tokens. Furthermore, after the ICO and previously, we sold tokens to companies in Germany (more information available here: https://cebiolabs.io/ico-results/). After further discussions this quarter, these companies have reassured us that the purchased tokens (at $0.10) will continue not to be sold. Therefore, we can guarantee further soft locks on many more tokens, providing support to the CBSL token price. If there are any changes in this regard, we will inform our community.
Adjustment of Our Roadmap
As described earlier, the development of systems, especially CeBioLabs SCM, has been delayed due to the expansion of our strategic positioning. We have transformed CeBioLabs SCM into a comprehensive software suite to cover additional areas in cannabis cultivation. This necessitates an adjustment of our roadmap and timeline. Therefore, we will update our roadmap on our website and revise our whitepaper accordingly. This is expected to happen in Q1 2024, outlining our plans for 2024 and 2025. Once our roadmap is updated, it will also highlight CeBioLabs’ additional activities, especially in Germany in light of cannabis legalization.