HENDERSON, NV / ACCESSWIRE / November 3, 2022 / EVIO, Inc. (OTC PINK:EVIO) is pleased to announce that it has successfully completed a restructuring (the "Debt Restructuring") and settled approximately $596,000 (the "Deferred Amount") of the Company's outstanding debt for approximately $205,000.
Over the next year, EVIO plans to execute on a cost reduction strategy in order to become profitable. The strategy consists of several phases and the Company plans to issue updates on the process over the coming months. This Debt Restructuring transaction is the first step of the multi-phase cost reduction strategy and falls in-line with the management team's plan to reduce historical debt, minimize dilution, and strengthen the balance sheet.
This debt was associated with the acquisition of Leaf Detective, LLC, on April 25, 2018. EVIO Inc. guaranteed this debt on behalf of its wholly owned subsidiary EVIO Labs Humboldt, LLC. The lawsuit associated with this transaction dated April 24, 2020, in which Creditors filed a complaint for breach of contract against EVIO, Inc., in the Superior Court of California for the County of Humboldt, under Case No. CV2000495 (the "California Lawsuit"), in the amount of $500,000 plus interest will be satisfied and fully dismissed upon payment per the terms of this agreement.
"We're actively pursuing initiatives to reduce both expenses and debt," said EVIO CEO, William Waldrop. "This settlement is a crucial step in the process of cleaning up EVIO's Balance Sheet and optimizing Cash Flows in order to better position the Company to raise capital, continue executing our fundamental strategy, and provide the necessary scale to fuel the growth we believe we're capable of achieving."
The proceeds for the settlement came from the sale of the EVIO Labs Portland's assets to PREE Laboratories. No new shares of common stock were issued as part of this settlement.
About EVIO
EVIO, Inc. ("EVIO") is a diversified holding company, focused on Construction Services and Pharmaceutical Testing. In Florida, the Company offers general contractor services serving the residential and commercial construction industry. In Canada, via its ownership in Keystone, the Company provides pharmaceutical, environmental, stability and analytical testing.
For more information, visit www.evioinc.com
Safe Harbor Statement
Any statements in this press release that are not statements of historical fact may be considered forward-looking statements pertaining to anticipated or projected plans, performance, and developments, as well as other statements relating to future operations and results. Words such as "may," "will," "expect," "believe," "anticipate," "estimate," "intends," "goal," "objective," "seek," "attempt," or variations of these or similar words, identify forward-looking statements. These forward-looking statements by their nature are estimates of future results only, and involve substantial risks and uncertainties, including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, the Company's ability to complete product testing and launch product commercially, the acceptance of product in the marketplace, the uncertainty of the laws and regulations relating to cannabis, the impact of competitive products or pricing, technological changes, the effect of economic conditions and other uncertainties detailed from time to time in Company reports available at www.evioinc.com.
For more information:
EVIO Inc.
William Waldrop, CEO
Email: [email protected]
Phone (702) 748-9944
SOURCE: EVIO, Inc.