EVIO Archives - Green Market Report

Debra BorchardtDebra BorchardtNovember 21, 2018
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4min13650

Cannabis lab testing company EVIO Inc.  (OTCQB: EVIO) announced unaudited revenue for its fiscal 2018 fourth quarter ending September 30, 2018. Revenues from North American operations which includes company-owned laboratories in Oregon, California, Massachusetts, and Alberta, in addition to royalty revenues from licensed laboratories in Colorado and Florida, were $1.05 million. Evio said that it plans to post its audited fiscal 2018 full year results in January.

This is a huge improvement over the company’s third-quarter results, which were only $634,338, down 18.3% from Q3:17, on account of a slower performance of testing services segment. Last quarter the testing service segment revenues fell 22.4% to $595,701. Second quarter revenues were $732,311, a decrease of $56,415 or 12.1% from second quarter last year.

EVIO’s fiscal year 2017 revenue was $3,021,030. A review of the past earnings announcements places EVIO’s 2018 revenue at approximately $3.3 million, an increase of 9.9% year over year.

“We are pleased to report unaudited revenue for the fiscal fourth quarter ending September 30, 2018 of $1,054,000 vs. $634,338 for the previous quarter ending June 30, 2018, representing quarterly growth of 66%,” said William Waldrop, EVIO’s Chief Executive Officer. “Key drivers for revenue growth included California’s new testing requirements that came into effect on July 1, 2018, and stabilization of the Oregon market. The company has several strategic initiatives underway to continue its momentum. EVIO Labs Berkeley is prepared for the next increase in state mandated testing requirements commencing January 01, 2019. EVIO Labs Humboldt is completing installation and optimization of equipment and is scheduled to provide full compliance testing services in the first quarter of 2019. Los Angeles and Palm Desert laboratories are in the licensing process and are forecasted to come into service during the first half of 2019.”

Mr. Waldrop went on to say, “We will continue our operations in Massachusetts in January 2019 with the opening of a new state-of-the-art facility in Framingham, MA, where we are completing tenant improvements. We anticipate license approval from the Massachusetts Cannabis Commission in the coming weeks. Further, the Company’s licensees in Colorado and Florida are both providing steady royalty revenues on a monthly basis. We note that our Florida licensee recently opened up its second location in Gainesville, FLA.”

“On the Canadian front, Health Canada finally announced on November 8, 2018, the long-awaited mandated independent pesticide testing that goes into effect January 2, 2019. We are pleased to say we are in the final stages of completing the installation of CDN$1.1M of new laboratory equipment at our facility in Edmonton, Alberta. This positions EVIO as one of a few licensed laboratories that may fully serve the testing requirements of Canadian licensed producers. We look forward to providing our compliance and safety services across Canada where as of October 17, 2018, cannabis use is federally regulated for both medicinal and recreational purposes.”

 


Debra BorchardtDebra BorchardtJune 28, 2018
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4min18200

The deals continue to happen in the cannabis space with lab company EVIO’s expansion in Oregon and CLS Holdings closing on its Oasis acquisition.

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EVIO Inc.  (EVIO) entered into an asset purchase agreement with Oregon-based MRX Labs. The company said that it has also formed a strategic alliance with MRX Xtractors which will develop and expand growth in existing and new markets.

According to the company statement, EVIO Inc. will acquire 100% of the assets of MRX Labs, LLC including equipment, real estate, customer lists, customer contracts, rental agreements, and equipment leases. EVIO Labs Portland will relocate its personnel and license to the Tigard facility. The transaction is expected to close on or before July 11, 2018.

“We are excited about the opportunity to further expand our reach and solidify our position as the dominant testing lab in Oregon,” said William Waldrop, CEO of EVIO. “As the Oregon market matures, there is a consolidation of the marketplace occurring, and this alliance is a win-win for both of our companies and our customers.”

MRX Labs, LLC, and MRX Xtractors, founded by Paul Tomaso, CEO and CTO, and Jonah Barber, President, have been research and development, design and engineering pioneers in both analytical testing and extraction technologies. “This relationship with EVIO affords MRX Xtractors an opportunity for us to focus on the global expansion of our extraction technologies, and to unite our testing lab with a company of scientists and professionals whom we trust will take great care of our loyal lab customers and employees,” said Barber. “We are thrilled with our newly formed alliance that gives us great confidence to refer our extraction customers, across the US and Canada, to EVIO’s network of labs and vice-versa.”

EVIO’s Lori Glauser spoke to Green Market Report not long ago about the company’s expansion plans in this video.

CLS Holdings USA, Inc

CLS Holdings (CLSH) closed its acquisition of Oasis Cannabis. With this purchase, CLS is now active in the legalized cannabis market in Las Vegas, NV, generating $850,000 in gross monthly revenue.

According to the company statement, Oasis Cannabis had its best month ever last month in generating $200,000 in gross revenues. Due to increased demand and the additional capital that was just raised, CLS plans to triple the grow production capacity over the remainder of 2018. On the retail dispensary side, Oasis has steadily witnessed increased traffic over the past few months, is now up to 400 daily visitors, and is currently generating $650,000 of gross monthly revenue.


StaffStaffApril 19, 2018
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7min11640

Here is your Daily Hit of cannabis news for April 19, 2018:

On The Site:

GW Pharmaceuticals Inc.

GW Pharmaceuticals Inc. (GWPH) continues to get closer and closer to FDA approval of its drug Epidiolex for the rare forms of epilepsy Lennox-Gastaut and Dravet Syndrome. Epidiolex is GW’s lead cannabinoid product candidate and is a pharmaceutical formulation of purified cannabidiol or CBD.

Following a live hearing on Thursday, the company announced that the Peripheral and Central Nervous System Drugs Advisory Committee of the U.S. Food and Drug Administration (FDA) unanimously recommended supporting the approval of the New Drug Application (NDA) for the investigational cannabidiol oral solution (CBD) for treatment in patients two years old and up.

MassRoots

MassRoots filed its annual report on Tuesday but didn’t get around to the company’s financials in the filing until page 24. Gross revenue for the year fell 54% to $319,242, while the net losses ballooned 146% to $44 million. The net loss per share for 2017 was 46 cents. CEO Isaac Dietrich awarded himself a bonus of $190,659 on top of his salary of $96,971. While Mr. Dietrich’s monthly salary was decreased from 2016, his total compensation jumped from $107,917 in 2016 to $287,630 in 2017.

Payroll and related expenses increased $991,528 to $3,104,407 during fiscal year 2017 from $2,112,879 during fiscal year 2016. MassRoots said that the increase was mainly a result of added personnel in 2017. However, the company actually slashed personnel and currently only has five full-time employees, two part-time and one full-time independent contractor. MassRoots also hasn’t paid its taxes. The company has payroll tax liabilities of approximately $1,599,489.

In Other News:

CannaRoyalty Corp.

CannaRoyalty Corp. (CNNRF) entered into an agreement to acquire FloraCal Farms  a licensed ultra-premium craft cannabis producer located in Sonoma County, California for total purchase considerations of $1 million in cash and 3,508,772 CannaRoyalty shares on close, as well as up to an additional US$3 million in cash and 3,508,772 shares to be paid over 3 years, based on completion of certain milestones.

According to the company statement, FloraCal is building its Sonoma County facility in three Phases and has been designed to comply with cGMP* (Current Good Manufacturing Process) standards. Phase I is licensed and in commercial production, with 15,000 square feet of purpose-built indoor growing in a 64,200 square foot facility. Phase II has been licensed and will increase the facility size to 42,200 square feet and targeted annual production of 3,700 kg, with construction expected to commence in Q2 2018 and be completed by Q1 2019. Phase III is under option and would allow further expansion to the full facility size of 64,200 square feet facility with a targeted annual production of 5,500 kg. FloraCal has a temporary medium indoor cultivation license from the state of California, as well a Type 6 non-volatile manufacturing permit in Sonoma County.

EVIO, Inc. 

EVIO (EVIO) announced the establishment of a new and wholly-owned subsidiary, EVIO Canada, which will serve as the parent company for the Company’s Canadian operations. Concurrently, EVIO Canada announced today that it has entered into a binding agreement to acquire 50% of Keystone Labs Inc., a privately-held, independent contract-testing laboratory specializing in quality testing for regulated industries located in Edmonton, Alberta.

Kona Gold Solutions, Inc.

Kona Gold Solutions (KGKG), a hemp lifestyle brand focused on product development in the functional beverage sector, is pleased to announce the retirement of One Hundred and Sixty Million (160,000,000) shares of common stock by the company’s management team. Kona Gold’s management team was able to negotiate the retirement of One Hundred and Sixty Million (160,000,000) shares of common stock.  The current Issued and Outstanding as of April 19th, 2018 is 486,465,449.

High Park Company 

High Park Farms,  an affiliate of High Park Company received a federal license from Health Canada to cultivate cannabis under the Access to Cannabis for Medical Purposes Regulations (ACMPR). The High Park Farms facility, which is anticipated to represent an investment of up to $30 million, features 13 acres of a greenhouse on 100 acres of property in Enniskillen, Ontario.
NJ law firm Pashman Stein Walder Hayden has filed a brief in direct response to New Jersey’s Division of Consumer Affairs solicitation for public comment on how marijuana is classified under state law and whether any change in its classification status is warranted. The brief argues that cannabis does not meet the definition of a controlled dangerous substance – and never has, and is in favor of de-scheduling cannabis completely. If marijuana is de-scheduled, it could have a significant impact on how it is regulated in New Jersey, and it may be the first step towards legalization.

 

 


StaffStaffMarch 7, 2018
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5min18830

This is your quick hit of news for March 7, 2018.

Marapharm Ventures Inc.

Marapharm Ventures (MRPHF)  gave a progress report on its Washington facility. The copany said that the rehabilitation of the cultivation site will be completed by the end of March.

“During the renovation, we have worked closely with our architect and engineering partners to design one of the most advanced and environmentally friendly cannabis cultivation sites in North America. To operate in the Pacific Northwest climate the 28,000 sq. ft building has a new silicone membrane roof and the interior has been insulated with expanding, closed cell foam. Our flagship tenant AlphaPheno Inc., a tier 3 producer and processor will be able to cultivate 30,000 sq. ft of plant canopy, the maximum allowed by the license, in just 28,000 sq. ft of floor space with minimal water, power, and waste.”

“These engineered solutions will produce higher quality cannabis with the lowest cost of production compared to conventional indoor cultivators and shorten our return on investment timeline.” Kurt Keating, Director of Operations.

Future Farm Technologies Inc.

Future Farm Technologies (FFRMF) announced that its Puerto Rico subsidiary has signed the first of five planned leases for its Clinica Verde branded Puerto Rico dispensaries. Future Farm expects to sign two more leases in the next thirty days with the additional two leases to follow soon after. The Future Farm Clinica Verde branded dispensary is located in the Condado neighborhood of San Juan, one of the island’s most highly trafficked areas.

EVIO, Inc.

EVIO (EVIO), reported that it had 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.

Hiku Brands Company Ltd.

Hiku Brands Company  (CSE:HIKU) gave an update on the its recent corporate development initiatives. Hiku’s wholly-owned subsidiary DOJA Cannabis Ltd. submitted its application to Health Canada for the production of medical cannabis oils at its second site facility located in Kelowna, British Columbia. Hiku also announced it signed a strategic partnership agreement with Vitalis Extraction Technology Inc.  where Vitalis will advise on the build-out of DOJA’s extraction lab, partner on certain research and development initiatives, and supply the FUTURE LAB with Vitalis’ Q-90 supercritical CO2 extraction system – which is capable of processing up to 80 kg of cannabis flower per day into ultra-pure, exceptionally-clean, high-quality cannabis oils without the use of any toxic solvents.

Sugarmade Inc.

Hydroponic company Sugarmade (SGMD) announced the completion of internal financial system enhancements in order to begin recognizing revenues from its master marketing agreement with BizRight Hydroponics, Inc. Additionally, Sugarmade announced the completion of its year-end audit in preparation for its year-end, and other, financial filings and its intent to soon offer formal revenue growth guidance for year-end 2018 and 2019.

For the past few months, the staff at Sugarmade has been implementing a plan to significantly increase corporate accounting and financial resources to manage the over 400% revenue growth planned for the next few years. With these functions largely completed, the company’s staff is now beginning testing on live orders and revenue flows from BizRight products, in order to begin recognizing these new revenue streams.


William SumnerWilliam SumnerFebruary 28, 2018
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3min20630

Cannabis testing company EVIO, Inc. (EVIO), announced that it expects to double the number of its cannabis testing laboratories from 9 to 18 in the coming year.

As legalization spreads across the United States, laboratory testing has become more integral to the legal cannabis industry. In states like California, a shortage of testing facilities has led to a bottleneck of cannabis cultivators and a surge in cannabis testing prices. Recent reports by BDS Analytics have estimated that the California market may reach as high as $5.1 billion by 2019 and the company estimates that cannabis testing will account for as much as 5% of that figure, or approximately $250 million.

Bearing this mind, the company hopes to focus its expansion on the critically underserved California market.

Heading up the expansion are two new additions to EVIO’s management team; Albert Lustig and Ron Russak. Lustig recently departed from his position at Pfizer as State Director, where he was responsible for managing multiple districts, regional and national sales organizations. Lustig will serve as President of Operations and use his experience to help drive growth in new and existing markets.

Russak will serve as Vice President of Operations and draw upon his more than 17 years of experience working for Quest Diagnostics, one of the United State’s leading testing providers, to help the company with scaling existing and new laboratory operations. Both EVIO and Quest operate under a “hub and spoke,” business model in which over-arching decisions and resources are centralized and distributed from the “hub.” This business model is most popular with transportation companies, but have also caught in industries such as aviation and cannabis.

The company also announced that on Feb. 7, 2018, its licensee, Kaycha Holdings, became the first cannabis testing lab in Florida to gain ISO 71025 accreditation; which is the highest quality standard in the world for testing laboratories. Currently, all of EVIO’s laboratories are either accredited or in the process of accreditation.


StaffStaffDecember 13, 2017
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4min22950

EVIO Inc. (EVIO) announced on Monday it has entered into an agreement to acquire 60% of C3 Labs to expand further into Northern California as demand for analytical testing services heats up. EVIO CEO William Waldrop said that the proposed C3 Labs deal would give EVIO, based in Bend, OR., access to an 8,000 sq. ft. lab and become EVIO’s Northern California hub laboratory.

“Outfitted with the latest analytical testing equipment, the laboratory is prepared to commence testing to meet California’s January 1, 2018, Cannabis testing requirements,” Waldrop said in a release, announcing the proposed acquisition. “C3 Labs have been serving the cannabis industry for years, providing product formulation, research, and development services that align with EVIO’s longer-term strategy to expand our scope of services.” EVIO currently has nine testing laboratories in five states.

Waldrop added that the deal allows EVIO to focus on taking market share in California, as demand for testing services throughout the state is “expected to increase significantly.” The companies expect the acquisition to close by the first quarter of 2018 and is subject to customary closing conditions, including due diligence from both C3 Labs and EVIO, as well as applicable local authorities.

California Deals Increase

According to ICF, the California marijuana market is projected to be $7 billion by 2020. This has caused a flurry of deals to happen as companies try to get ahead of the growth. Canadian-based CannaRoyalty recently acquired Bhang vaporizer company Kana Management and Bhang’s distributor Alta Supply company. Toronto-based Nutritional High acquired California distributor Calyx Brands in November. Also in November, medical marijuana company Cannabis Sciences (CBIS) acquired three dispensaries in the Los Angeles market to speed up its expansion.

Benefits Of The Proposed Transaction

Though C3 Labs has only served the cannabis industry since 2015, it’s been able to accomplish quite a lot in just a short amount of time. The Berekely, Calif.-based C3 was granted a Cannabis Research and Development business license by Berkeley that allows the company to “provide cannabis scientific research, product design, development, and testing.” It’s also one of the country’s first “cannabis-focused contract research organizations,” containing both field services and a research center.

The company uses technologies seen in both the food product and pharmaceutical industries to allow cannabis growers and processors operate with the law and provide what it states as “the highest level of safe and effective medicinal products.”

Retail Cannabis Sales Poised To Surge

The pending deal is the latest sign that retail cannabis sales are poised to surge in the coming years. According to recently released data from ArcView Market Research in conjunction with BDS Analytics, retail cannabis sales are poised to grow 33% from 2016 to nearly $10 billion this year. By 2021, ArcView estimates the legal market will more than double, reaching $24.5 billion.



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