EVIO Growing at the Right Time; Marijuana Regulatory Environment Continues to Shift in Favor of Cannabis Companies

(FinancialPress) — June was a watershed month for legal marijuana advocates.  Canada became the first industrialized nation in the world to legalize recreational marijuana.  The U.S. Food and Drug Administration approved the first cannabis-based prescription medication, Epidiolex by GW Pharma for rare forms of children’s epilepsy.  Oklahoma, a deeply Republican state, became the 30th state in the U.S. to approve medical marijuana.  The Bank of Montreal signed a loan deal to provide up to $250 million to Aurora Cannabis, the single-biggest traditional debt facility yet for a company in the cannabis industry.  Further, the bipartisan STATES Act was introduced in the U.S., a bill that would finally put an end to any fear of federal backlash for states that enact legal cannabis laws.

If June doesn’t speak to growing momentum in the legal marijuana space, nothing does.  More broadly, consider that just over two decades ago, marijuana was illegal in all forms in Mexico, Canada and the United States.  Now it is legal for adult use in Canada, for medical purposes in over half of the U.S., along with recreational cannabis permitted in nine states and the District of Columbia and Mexico last year legalized medical marijuana.

The U.S. population is finally leaning strongly in favor of marijuana. The latest survey by Quinnipiac University shows that 63% of Americans support ending federal prohibition of marijuana, while 93% of respondents back medicinal use of the plant.

This creates a favorable backdrop for companies of all types in the space, including growers, retailers and ancillary companies, such as testing facilities, which serve as cornerstones of the industry.  Certified laboratories are in particular demand at this point as new rules are set in place to ensure consumer safety of cannabis plants and edibles.  In California, for example, July 1 marked the day that all cannabis sold within the state must pass an array of tests for things such as pesticides, mold and a list of other contaminants, as well as meet packaging guidelines.

To wit, dispensaries must get rid of all cannabis products that don’t meet state regulations as of the July 1 deadline.  According to KPIX CBS in San Francisco, a bottleneck in the supply chain could lead to a shortage of marijuana products.

In an article published June 28 by The Californian, Lori Glauser, chief operating officer at EVIO, Inc.,  (OTCQB: EVIO), a leading provider of cannabis testing and scientific research for the regulated cannabis industry in North America, the vast majority of cannabis in the state has not yet been tested.  While some cultivators have stayed ahead of the curve and have been testing their products for months to ensure it meets the high standards of California regulations, others have put it off, leading to what Glauser called an uptick in demand for testing.

EVIO has positioned itself in the lucrative California markets and in several key states across the country where testing demand is strong, including Colorado, Massachusetts, Florida, California and its home state of Oregon where it has a particularly dominant position with labs in four cities.  Late last week, EVIO disclosed an agreement to acquire MRX Labs, an award-winning testing lab in Portland.

EVIO prides itself on maintaining the highest standards with its facilities and analytical practices, with all its labs either currently ISO accredited or in the process of obtaining the vaunted certification.  The company’s Northern California lab in Berkeley was the latest to received ISO 17025 accreditation, obtaining the label late in June.

EVIO management has not overlooked the opportunity in Canada either, in May acquiring 50 percent of Keystone Labs, a Health Canada-licensed medical cannabis testing facility.  As part of the launch of EVIO Canada, the company is taking the necessary steps to list on the Canadian Securities Exchange to cater to the growing domestic and international investor interest for a leading cannabis testing facility capturing share in a global testing industry forecasted to reach $1.42 billion by 2021.

With the way the industry is collecting tailwinds, the timing of EVIO’s expansion efforts couldn’t be any better.

DISCLAIMER: Online Media Group, Inc. is not registered with any financial or securities regulatory authority and holds no investment licenses and does not provide, nor claims to provide, investment advice. We are a publisher of original and third-party news and information. This article is sponsored content and is neither an offer nor recommendation to buy, sell or hold any security. The views expressed are our own and not intended to be the basis for any investment decision. Investing intrinsically involves substantial risk and readers are reminded to consult an investment professional and complete their own due diligence, including SEC filings, when researching any companies mentioned in this release. This release is based upon publicly available information and, while vetted, is not considered to be all-inclusive or guaranteed to be free from errors. With respect to Section 17(B) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader’s attention to the fact that Online Media Group, Inc. received compensation from EVIO. Inc. for distribution services related to this material.

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SOURCE: EVIO, Inc.

 

 

 

 

 

 

 

 

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