State-of-the-Art Upgrades to Cannabis Testing Facilities to Increase Revenues and Efficiency
SANTA MONICA, CA / ACCESSWIRE / March 7, 2018 / EVIO, Inc., (OTCQB: EVIO), a leading life sciences and cannabis testing company, recently invested $800,000 in new equipment upgrades at its EVIO Labs Massachusetts facility and its EVIO Labs Colorado licensee. According to senior management, these equipment upgrades will significantly increase testing volumes to meet increased demand and testing requirements, leading to improved operating efficiencies and revenue growth.
EVIO currently operates 9 cannabis testing laboratories in five states, a coast-to-coast footprint that continues to keep pace with the cannabis testing market, one of the most attractive and investment-friendly segments of the overall legal marijuana industry- a space that has exploded onto the investment scene over the last few years, and continues on a rapid growth trajectory.
Evaluating the risks of the various market segments in the marijuana market, let alone the various companies within those segment, has proven to be a challenge for investors looking to get in on the “Green Rush”. However, cannabis testing is fast becoming attractive to investors looking for a more predictable and sustainable long-term growth model. Within this testing industry, EVIO continues to be an established leader, and the recent infusion of investment capital from its recently completed (and oversubscribed) $5.9 million private placement offering, will go a long way towards cementing the company’s premier position in the industry.
“This investment in new and upgraded equipment at our EVIO Labs Massachusetts facility and our EVIO Labs Colorado licensee will go a long way towards cementing our reputation as the undisputed leader in these key markets, making EVIO the gold standard for the cannabis testing industry,” commented EVIO CEO, William Waldrop. “We believe strongly in our mission to improve the quality of life through the use of legal, safe, and tested cannabis, which is only possible with investments in the most advanced lab equipment and the best, most qualified personnel. We at EVIO are confident that this investment will improve the efficiency and speed of our cannabis testing operations within these jurisdictions for our valued customers, and improve our financial performance for our valued shareholders.”
In a recent shareholder update, EVIO CEO, William Waldrop was pleased to inform investors that the growing company is on track for 18 labs by year end 2018, and will have …”some exciting announcements to make in the next 30-60 days.” The company is also moving forward with the planned “build-out” of a new facility in Costa Mesa, CA, and is currently evaluating lab opportunities in Maryland, Pennsylvania, New York, Michigan and Canada.
According to a report from the Brightfield Group, a cannabis market research group, the international market for cannabis is projected to hit $31.4 billion by 2021. Currently, the global market is estimated to be worth $7.7 billion and will see a compound annual growth rate of 60 percent as other countries around the globe reevaluate their marijuana laws.
The United States currently drives 90 percent of global cannabis sales, but that share will drop particularly as Canada enters into a long-awaited age of cannabis legalization. At five percent of the total marijuana market, cannabis testing, which will continue to be mandatory, is both a wide open and reliable industry segment that merits investment consideration. A leader in this space, EVIO, Inc. is looking for exciting forays into new cannabis markets in individual US states and international locations.
“We are thinking globally, but acting locally,” further commented Waldrop. “In the end, or business is relationship oriented, and requires and emphasizes close cooperation between state and local governments, growers and users, and, at the center, cannabis testing experts like EVIO, to ensure the safe consumption of legal medical and recreational cannabis.”
A distinguishing feature of EVIO relative to competitive companies in the cannabis testing industry is its uniquely centralized operation, a “hub and spoke” model that management likens to Quest Diagnostics, the leading provider of healthcare diagnostic testing services. This model enables EVIO to achieve economies of scale through centralized functions and repeatable lab designs. Additionally, as EVIO adds new labs to its portfolio, the model enables it to ensure all labs are operating to the same high level of quality standards. This multi-jurisdiction presence is critical, as it provides the company with a broad platform of experience, enabling it to aggregate the best practices from labs across the U.S. EVIO’s “hub and spoke” model of cannabis testing labs is critical to fueling expansion and gaining market share.
Always looking to improve in the efficiency of each EVIO laboratory through smart investments in new equipment, new personnel, and new market opportunities, EVIO continues on its path towards its mission of becoming synonymous with safe, quality cannabis for legal consumption both in the United States and abroad.
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SOURCE: EVIO, Inc.