- EVIO is the leading cannabis analytical testing company in the United States
- Acquisition of Leaf Detective provides a significant increase to EVIO’s testing capacity
On April 30, 2018, EVIO Inc. (OTCQB: EVIO) announced that it had executed an asset purchase agreement to acquire 100 percent of Leaf Detective, LLC, a California-based testing laboratory (http://cnw.fm/TRaC0). EVIO is the leading provider of cannabis testing and scientific research for the regulated cannabis industry. This strategic acquisition aligns with the company’s efforts to expand its analytical testing services to meet the increasing demand for these services in the state of California.
In terms of the agreement, EVIO will form a new entity, EVIO Labs Humboldt, to purchase all of Leaf Detective’s business assets for a total consideration of $500,000 in the form of a Convertible Promissory Note, which is convertible at $1.25 per share. The purchase includes brand, customer lists and contracts, rental agreements, equipment and equipment leases.
Leaf Detective is Humboldt County’s first licensed cannabis testing facility. The laboratory specializes in analytical testing for medical marijuana dispensaries, cannabis manufacturers, producers and consumers. It is an independently owned and operated testing facility that is dedicated to providing timely and accurate test results.
The Californian cannabis industry is predicting a shortage of testing services due to the state’s July 1 testing deadline requiring licensed retailers to sell only lab-tested products. This shortage will lead to delays in getting approval to sell the products. EVIO’s acquisition of Leaf Detective will capitalize on the current situation by increasing its testing capacity to meet the anticipated demand for testing services.
In a news release, William Waldrop, CEO of EVIO, stated, “Leaf Detective holds one of only 28 licenses issued by the Bureau of Cannabis Control for testing facilities. Upon completion of this acquisition, we will upgrade the facility to meet new testing standards and plan to be operational by end of third quarter. Our goal is to continue to improve consumer safety and increase shareholder value by capturing additional market share.”
Leaf Detective is located within the Emerald Triangle region of Northern California, the largest cannabis-producing region in the United States. This will give EVIO exposure to a larger customer base. A report by Arcview Market Research and BDS Analytics, a cannabis industry research firm, estimates that California cannabis sales will reach $3.7 billion by the end of 2018 and predicts that sales will grow to $5.1 billion in 2019 (http://cnw.fm/uSw32).
“The expansion of our footprint is a clear reflection of the progress we are making in establishing the EVIO brand as one of the most prominent, safe and trustworthy testing laboratories in the State of California for cannabis,” Waldrop added.
For more information, visit the company’s website at www.EVIOLabs.com
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