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Demand for legal marijuana continues to increase as new markets open and existing markets expand.
One of the biggest beneficiaries of the legal marijuana movement will be the companies that provide lab testing services for marijuana cultivators and dispensaries. The United States is in the middle of a marijuana revolution and 29 states and the District of Columbia having legalized medical marijuana.
As legalization initiatives continue to be implemented across the country, there will be an increased demand for reliable cannabis testing facilities.
Signal Bay: Focused on Expansion
Earlier this month, we featured Signal Bay (SGBY) which is a company that operates cannabis lab testing facilities and offers accredited testing methodologies that verify the safety and potency of cannabis.
Signal Bay’s cannabis laboratory services division, EVIO Labs has operations in Oregon and California (5 operational laboratories) and is focused on entering new markets and pursing organic and inorganic growth opportunities.
Today, Signal Bay announced that EVIO Labs licensed its first lab in Florida. Kaycha Holdings, LLC will operate under the EVIO Labs brand and will be managed by a lab director with over 18 years of experience in the development of Nutraceutical and Pharmaceutical Products.
Although we are favorable on the Florida medical marijuana market, the program has been slow to get started. We are glad to see Florida state governor Rick Scott sign off on legislation that increased the number of dispensaries and believe this will be a good opportunity for Signal Bay in due time.
A Busy Month
Earlier this month, Signal Bay received a favorable reaction from the market after it announced that will start providing analytical testing services to the southern California cannabis market.
Signal Bay plans to enter new markets throughout the United States in states where medical marijuana is legal. The company has been executing quickly and the California announcement came less than a month after it signed a letter of intent to acquire Massachusetts-based cannabis testing lab, Viridis Analytics MA.
We are favorable on these developments and they are in-line with their growth strategy. The California, Florida, and Massachusetts marijuana markets are attractive due to their growth potential and diverse geographic location.
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