EVIO Completes Acquisition of C3 Labs
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EVIO has announced that it has completed the acquisition of 60% of C3 Labs. Theyalso has the option to purchase the remaining ownership subject to terms disclosed below. Effective January 1, 2018, C3 Labs LLC was also granted its temporary testing license from the State of California, and will operate under the brand EVIO Labs Berkeley.
Located in Berkeley, CA, C3 Labs will serve licensed California cannabis businesses in accordance with the rules set forth by the Bureau of Cannabis Control. The State has issued more than 400 temporary licenses from the 1,800 applications submitted, with most still pending review. The Bureau of Cannabis Control also implemented emergency rules which require all cannabis harvested or manufactured after January 1, 2018 be tested by a licensed testing laboratory. Testing rules will phase-in, with increased testing requirements both on July 1, 2018 and January 1, 2019.
Licensed Cannabis companies seeking to obtain testing services from EVIO Labs Berkeley can reach the lab by calling 888-544-EVIO (3846) extension 2001.
“The addition of C3 Labs to the EVIO network is a tremendous milestone for EVIO Inc. C3 Labs generated over $1M in consulting revenues during the last two years, EVIO plans to continue offering these services along with traditional compliance testing. The 8,000 square foot facility is already outfitted with the latest analytical testing equipment, and will become our Northern California hub laboratory,” commented William Waldrop EVIO CEO, “This acquisition represents a significant development for EVIO as the Company continues to focus on increasing market share in the state of California. Demand for testing services is expected to increase significantly as the state rolls out its adult-use marijuana market.”
In consideration of the C3 Labs 60% membership acquisition, EVIO issued a $500,000 convertible promissory note that bears no interest and has a maturity date six months from closing at which time the note will automatically convert at a rate of $0.75 per share. EVIO also issued a $100,000 promissory note that is due within 90 days of closing. For a period of three years from closing date, EVIO has the right to acquire an additional 30% ownership for $450,000 payable in cash and/or stock subject to C3 member approval. Contingent upon exercise of the 30% option, EVIO will have the option to acquire the remaining 10% ownership after three years from closing. The purchase price will be mutually agreeable at that time, or subject to independent third-party valuation.