EVIO to Purchase Licensed Cannabis Laboratory in Northern California
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EVIO has announced that it has signed a non-binding letter of intent to acquire 60% of C3 Labs, LLC. This acquisition fast tracks EVIO Labs’ expansion into Northern California to meet the upcoming demand for analytical testing services.
Located in Berkeley, CA, C3 Labs has been serving the cannabis industry since 2015. C3 Labs has been issued a Cannabis Research and Development business license by the City of Berkeley that permits them to provide cannabis scientific research, product design, development and testing. C3 Labs was one of the nation’s first, true, cannabis-focused contract research organization (CRO), with both field services and a state of the art research center in beautiful Berkeley, California. C3 Labs’ highly experienced scientists and engineers utilize cutting edge technology to support their customers in analytical chemistry, process chemistry, formulations, and engineering.
“We are very excited about the partnership with C3 Labs, LLC. The 8,000 square foot facility is ideally suited to become our 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,” commented William Waldrop EVIO CEO, “C3 Labs been serving the cannabis industry for years, providing product formulation, research and development services that aligns with EVIO’s longer term strategy to expand our scope of services. We are working to close this transaction in an expeditious manner to begin serving the California market by first quarter 2018.”
Waldrop continued, “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. This will be a transformational acquisition for EVIO as it enhances the Company’s position within the California market.”
C3 Labs applies technologies employed by the food product and pharmaceutical industries to ensure that growers and processors operate in a fully compliant and quality manner and helps clients maintain the highest level of safe and effective medicinal products. Their staff has over 40 years of collective hands-on analytical expertise working in the Pharmaceutical and Petrochemical industries with 7 years of experience consulting to the FDA, USDA, and EPA, as well as the companies regulated by these agencies.
The proposed transaction is subject to customary closing conditions, including both parties completing due diligence and obtaining any approvals from applicable local authorities. The closing is conditional on negotiating final agreements in addition to the other closing conditions. Assuming completion of these conditions, the transaction is expected to close in the first quarter of 2018.