BEND, Ore., Feb. 27, 2018 (GLOBE NEWSWIRE) -- via NetworkWire – EVIO (OTCQB:EVIO), a life science company and leading provider of quality control testing and advisory services to the regulated cannabis industry is pleased to provide a corporate update to shareholders.
Dear Shareholders,
It is an exciting time to be involved in the cannabis industry, which is expected to double in size again by 2021 as more states look to legalize both medical and recreational cannabis use. Despite the risks inherent in any evolving marketplace, and despite the political uncertainty with respect to marijuana’s legal status on the federal level, we have now entered into the second year of this administration, and all signs continue to point to a very bright future for one of the fastest growing industries in the nation. Moreover, cannabis testing continues to represent one of the most critical components of this industry as we move forward, however slowly, to inevitable cannabis legalization across North America. As a stable, reliable, and ever-growing market subset, mandatory testing has become the standard in the various cannabis-friendly states. Since our last shareholder update, we at EVIO have made significant progress in our mission to become synonymous with safe, high-quality cannabis for legal consumption. We continue to meet major milestones on our path to increasing revenues and improving shareholder returns.
Improvement and Expansion of EVIO Laboratories:
We are pleased to report that we now offer our state-of-the-art cannabis testing services nationwide, with eight operating labs in five states. The foundation of our coast-to-coast operation continues to be Oregon, the location of our prototype laboratories. EVIO services nearly thirty percent of the cannabis testing market in Oregon and continues to have some of the most stringent accreditation criteria in the nation. Recent developments include the continued expansion of our testing capabilities, such as adding of delta-8 THC to our analyte list for cannabinoid profiling.
In addition to improving our advanced testing laboratories, improving state and national cannabis testing quality standards and servicing our growing client base with increased efficacy and efficiency, we’ve also recently invested $800,000 in new equipment upgrades at the Massachusetts and Colorado laboratories. This will result in both increased revenues and increased operating efficiencies.
Significant recent milestones in our strategic multi-state expansion plan include the accreditation of our Florida and Colorado laboratories. Our Florida Licensee, Kaycha Holdings LLC d/b/a EVIO Labs Florida, recently attained ISO 17025 accreditation and is the first accredited cannabis testing lab in the state. ISO 17025 is the highest recognized quality standard in the world for calibration and testing laboratories. Meeting this standard requires the consistent production of precise and accurate tests and the implementation of a rigorous quality management system. Recently, the Colorado licensee also completed its accreditation, representing an important step in expanding the footprint in the lucrative Colorado market. We are anticipating ISO accreditation in both our Southborough, Massachusetts and Berkeley, California locations by end of second quarter 2018.
Overall, we are still on track for 18 labs by year end 2018 and we have some exciting announcements to make in the next 30-60 days. In the massive California cannabis testing market, the company is also moving forward with the build-out of a new lab in Costa Mesa, CA as well as finalizing discussions for several regional service centers. We are also evaluating lab opportunities in Maryland, Pennsylvania, New York, Michigan and Canada.
As we add labs to our portfolio, we ensure all are operating to the same high level of quality standards. We anticipate that receiving accreditation and launching operations will become faster and easier each time. Our multi-jurisdiction presence will continue to be critical as it provides the company with a broad platform of experience, enabling us to aggregate the best practices from labs across the country and achieving economies of scale through centralized functions and repeatable lab designs. Our unique “hub and spoke” model of cannabis testing labs continues to enable us to fuel our expansion and gain market share in our various territories of operation.
Revenue Results and Projections:
As we continue to build out our national centralized network of cannabis testing laboratories, we are pleased to announce a significant increase in revenues for the first quarter of this year as compared to last year’s first quarter revenues.
First Quarter Fiscal 2018 Financial Summary
- First quarter revenue was $946,865, up 41.6% from first quarter last year.
- First quarter gross profit was $210,602, up 168% from first quarter last year.
- First quarter testing revenue was $887,349, up 56.1% from first quarter last year.
- First quarter cash position has increased to $221,820.
$5,973,000 Private Placement to Fuel Expansion Efforts
Recently, we announced to shareholders the successful closing of our offering of Units in the Company, raising an aggregate amount of $5,973,000. This additional investment is indicative of the health of our company and its upward trajectory. We have already begun allocating the net proceeds of the offering to fund the development and expansion of our California laboratory operations as well as for working capital, retire existing debt and for general corporate expenses. The Offering was oversubscribed, a testament to the strength, branding and name recognition of our growing company.
Key Additions to Our Top Tier Management Team
Recently, we were pleased to announce the addition of two top executives, Al Lustig and Ron Russak to our management team to serve as President and VP of Operations, respectively. These gentlemen bring to our company decades of experience and expertise at some of the largest and most prestigious firms in the healthcare industry. Lustig comes from pharmaceutical giant Pfizer where he built, led and helped manage many district, regional and national sales organizations. As President of EVIO, Lustig will be instrumental in driving growth in both new and existing markets through the execution of our national and international sales and operational strategies. His role in international sales will take on more significance for us sooner rather than later. Ron Russak, our VP of operations, hails from a 17-year career at Quest Diagnostics culminating in the role of Regional Director. Mr. Russak will spearhead our portfolio of cannabis testing labs, focusing on scaling existing and new laboratory operations to maximize growth and profitability.
Conclusion
As a publicly traded company, EVIO appreciates that our first and foremost responsibility is to our shareholders. We owe our success to you and your faith in our business. It is our pledge to you as investors and partners that we will meet our planned expansion milestones.
The last several years have been exciting ones for the cannabis industry and the investment climate has proven very receptive as the road to legalization of cannabis continues to outpace even the most optimistic predictions. In this market, cannabis testing represents a significant five percent of industry costs. It is in this market subset, a subset that continues to attract new investors for its reliability, that our company continues to expand methodically and aggressively, utilizing our substantial industry expertise to source and seize on market trends and opportunities before and as they arise.
EVIO is currently at a very exciting stage of development. With the infusion of investment capital, the rollout of new laboratories nationwide and the addition of seasoned management, we have made tremendous progress in our mission to become the leading player in the cannabis testing space. The future of our industry and EVIO’s position within it has never been more secure.
About EVIO, Inc.
EVIO, Inc. is a life sciences company focused on analyzing cannabis as a means for improving quality of life. The Company provides analytical testing services, advisory services and performs product research in its accredited laboratory testing facilities. The Company’s EVIO Labs division operating coast-to-coast provides state-mandated ancillary services to ensure the safety and quality of the nation's cannabis supply.
For more information, visit www.eviolabs.com
Safe Harbor Statement
Any statements in this press release that are not statements of historical fact maybe considered to be forward-looking statements. Statements may contain certain forward-looking statements pertaining to future 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, our ability to complete our product testing and launch our product commercially, the acceptance of our 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 our reports filed with the Securities and Exchange Commission, available at www.sec.gov or www.eviolabs.com
Company Contact:
EVIO Inc.
Bend, OR
www.EVIOlabs.com
888.544.EVIO
info@EVIOlabs.com
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