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Here We Grow Again; EVIO Labs Enters Massachusetts Cannabis Market
Friday, July 28, 2017 8:00 AM
SANTA MONICA, CA / ACCESSWIRE / July 28, 2017 / A month after saying it was expanding its cannabis testing business into Massachusetts, Signal Bay Inc. (OTCQB: SGBY) made good on their promise, inking a definitive agreement to acquire Viridis Analytics MA, LLC for an undisclosed amount. Viridis is one of only a handful of operating cannabis testing laboratories in the state, serving clients from a state-of-the-art facility at its headquarters in Southborough, Massachusetts.
Through its subsidiary, EVIO Labs, Signal Bay initiated its cannabis testing market footprint in its home state of Oregon, opening its first licensed facility in October 2016. Led by CEO William Waldrop, the company is making short work of expansion into other large U.S. markets where cannabis has been legalized for both recreational and medicinal purposes. The company, which recently said it plans to change its name to EVIO, Inc. as a better branding method, has, in the last month, penetrated the massive California market and now Massachusetts, as well.
In November, residents in both states voted to legalize recreational marijuana, setting the stage for a surge in cannabis demand in 2018. Against the backdrop of increased consumption, lawmakers are challenged to enact regulations to ensure the safety of marijuana products. Market analysts at New Frontier forecast the California and Massachusetts cannabis markets will reach $6.46 billion and $1.1 billion, respectively, by 2020.
As these markets swell, so will the demand for accredited testing facilities to help standardize and verify repeatable strains and make sure all products are free of pesticides, pathogens and other potentially harmful contaminants.
By their own accord, EVIO Labs estimates that the cannabis testing market in Massachusetts, alone, will top $30 million by 2020. When the acquisition of Viridis is completed next week, EVIO Labs will be one of only three operating testing facilities in the state.
"With marijuana being legal in one fashion or another across 29 states, opportunities abound outside of Oregon, but we are being meticulous about where we are spending our resources to maximize return and build shareholder value," Waldrop said in a phone conversation on Thursday. "Our move into Costa Mesa, California gives us a leg up on labs potentially opening in other Orange County cities. Now, we have a more than ample opportunity to capture market share as one of the few operating labs in the whole state of Massachusetts."
"We have cutting edge testing equipment, the expertise, gravitas and a head start on competition in what are expected to be massive markets," he added. "As we cement our positions in these markets, our strategy is to identify optimal organic and inorganic growth opportunities to cascade our labs across the country."
Massachusetts is expected to experience a tremendous boom in dispensaries going forward. Consider that, while much more populous, California has approximately 2,800 dispensaries compared to Massachusetts, which only has 11. That equates to 1 dispensary in CA for about every 14,000 people, versus 1 dispensary for every 618,000 people in MA.
Simply, 11 dispensaries are not going to service the 6.8 million citizens of Massachusetts. According to the Massachusetts Executive Office of Health and Human Services, there are over 100 pending applications for registered marijuana dispensaries that can open upon final approval.
EVIO Labs will be in on the ground floor as the number of MA dispensaries rises 10-fold, just the way that they are aligned to be the first accredited lab in Orange County, CA, providing evidence that Waldrop and his team have got a game plan and are executing it to the letter.
That doesn't mean they're content where they are, though.
"Yes, we're happy with what we've accomplished in a short period of time for sure, but in this rapidly emerging industry there's no time to reflect upon those successes; we are already moving forward with expansion into additional states."
This newsletter/article is sponsored content and is neither an offer nor recommendation to buy, sell, or hold any security. Online Media Group, Inc. is not registered with any financial or securities regulatory authority and holds no investment licenses and does not provide, nor claims to provide, investment advice. We are a publisher of original and third party news and information. The views expressed are our own and not intended to be the basis for any investment decision. Investing intrinsically involves substantial risk and readers are reminded to consult an investment professional and complete their own due diligence, including SEC filings, when researching any companies mentioned in this release. This release is based upon publicly available information and, while vetted, is not considered to be all-inclusive or guaranteed to be free from errors. With respect to Section 17(B) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention to the fact that Online Media Group, Inc. received $2,500 in compensation by SGBY for content creation, advertising and distribution services related to this material and other material.
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