Signal Bay Inc (OTCMKTS:SGBY), the market pioneer in cannabis testing and lab services, reported to shareholders that the firm had closed the acquisition of Green Style Analytics Lab in California. EVIO Labs are laying the standard for efficiency within the expanding cannabis testing industry. This acquisition brings the firm’s total testing labs functioning under the brand “EVIO Labs” to 5, and positions the firm to capitalize on California’s considerably underserved cannabis testing industry.
In a previous PR, CEO William Waldrop said that they are extremely proud to report the first EVIO Labs facilities in California. The Lab presently services nearly 1300 accounts across Northern California. Green Style Analytics offers cannabis dispensaries, growers and processors in Humboldt, Trinity, Calaveras, Sacramento, Shasta and Placer counties. Located just nearly 4 hours from Signal Bay’s Medford location, the firm believes the laboratory will fit effortlessly within its overall “hub and spokes” operational model of running cannabis testing labs.
Besides the 1300 accounts, the company will inherit from the deal, Signal Bay will add major personnel committed to assisting the firm implement on its growth strategy. The firm currently has staff of 31 working to advance its EVIO Labs segment operating in California and Oregon. Also, the firm is well-positioned to achieve its stated objective of 18 EVIO Labs across California by the close of 2018.
Signal Bay’s entry into the Golden State comes at a historic time. Polling indicates that Proposition 64, which will approve marijuana for recreational purpose in California. This would lead in an overnight growth of the California cannabis testing industry to $300 million yearly. In addition, the current market worth $100 million is widely unmet, with just 5% of cannabis in the state presently evaluated according legislative standards.
California AB266 requires that all cannabis offerings offered in California whether in edible, flower or oil form, must be assessed by an accredited, self-governing analytic testing laboratory after December 31, 2017. In the state, Signal Bay is after the template of its positive strategy implemented in Oregon, where the firm is now the leading player in the state. The firm bought four testing labs in last couple of years prior to the execution of HB3400 in Oregon last month, a law requiring compulsory testing of all cannabis products.