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EVIO Inc. (EVIO) announced a milestone today with the opening of its fifth testing location in eastern Oregon. The company is the nation's leading provider of analytical laboratory cannabis testing, research and advisory services.
EVIO is a life science company that provides accredited analytical testing services and scientific research to the regulated cannabis industry. EVIO’s lab division provides state-mandated ancillary services to ensure the safety and quality of the nation's cannabis supply.
Demand for Legal Marijuana Continues to Grow
Demand for legal marijuana continues to increase as new markets open and existing markets expand. This trend is just getting started and has created countless opportunities for ancillary businesses.
One of the biggest beneficiaries of the legal marijuana movement will be the companies that provide lab testing services for marijuana cultivators and dispensaries. As legalization initiatives continue to be implemented across the country, there will be an increased demand for reliable cannabis testing facilities.
To protect consumers, most state governments have passed legislation requiring marijuana producers to have their products tested for potency as well as for potential harmful ingredients at independent testing facilities before allowing the products to go on the market.
We are favorable on EVIO’s leverage to this market and believe that they have been executing on their strategy. The lab testing industry is expected to see incremental growth over the next few years and EVIO plans to capitalize on this growth by creating a coast-to-coast footprint in the United States.
A Stock to Watch
EVIO has been under pressure recently and the shares are trading at $0.52 after falling more than 10% yesterday. The shares have been trading in oversold territory and continue to look for a bottom following the company’s reverse split in September.
During the last month, EVIO has fallen 47% and the shares are trading well below its 20, 50, and 150-day moving average. We believe this selloff is overdone and will keep an eye on how EVIO trades from here.