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I believe he’s said before he’s a customer. At least a cultivator.
So what do you expect for Q3 and Q4?
Curse is bad. Stay the course!
I guess the one thing I can agree with indirectly is after watching and/or hearing both WW and Lori speak and reading articles with their quotes is they are definitely more skilled and driven by the science side of things and consumer safety rather than business sense. They probably could do better with a different skill set CEO. But I think they are both learning and doing a better job as time goes on. There is a lot in running a business and there are learning curves. They have the vision, they are doing it for the right reasons (passion and pride), they are doing it thoroughly. The share price needs to be backed by the numbers. Maybe with more business minded driven people with more energetic demeanor and persona investors would feel more confident to buy more and hold more. But I also believe when the numbers come out and as states legalize this will flourish. People will see WW and Lori had it right all along just with a few bumps in the road. You can’t deny numbers and they aren’t out yet. They have made many good moves recently including many hires. I am hoping they will have these build out labs opened by October and keep us updated on that. Also I expect a July revenue update as we had for Oregon the October they went started mandating testing.
I can definitely agree with this. It takes almost 2 years from law passing until mandating testing is required and at minimum one year. To me that’s ample time to expand into a new legalizing state. Although timing is everything and too late could cost more money if they wait. Id like to see a full on Cali for next few before expanding into northeastern states that are passing laws within the year most likely. And Canada doesn’t require mandated testing either. They should need it soon with international export though. But fact is California requires it now and that should be a priority. I also don’t want to over extend to fast as well. I don’t think it’s necessary from here on. We have a solid foot print and hope to be in the black by February.
Also I have been here since the same time.
Agree with everything you said. They need to get the AS down as good faith. I believe it’s suppose to get down to 100million? Which is plenty, IMO. If that’s not plenty then this business model isn’t good enough. Whether it’s the market, margins, laws, etc.
I think they are serious about uplisting. I don’t think they realized the impact of the notes. Maybe thought the revenues would be greater than they are at this time? Maybe they are longer term than most otc players. I do not think they made perfect moves but I think they are doing good and getting better with their decisions. California just forced mandated testing in July but Rec passed almost 2 years ago although wasn’t implemented until January of this year. Things move slower than the people would like. That’s what I chalk it up to. They though revenues would be in full swing by now. But we are just getting started. All those acquisitions have been liabilities until now. This is the pivot point. There’s still more dilution coming but the market will accept it IF the revenues and market are there with these. Eventually dilution will end and there will be traditional financing or venture capitalist financing but it’s atleast a year and a half away, IMO. We need to see the financial reports.
I agree. There’s just a lag for generating and reporting revenues. This is the case with most businesses. Over night success takes a few years. It sucks to be back down here from dilution but we are close to the pivot point here. Most of us here agree the revenues will out weigh the dilution in Q1 which won’t be reported until Feb. It could be rocky until then. Today is the last day of July. Hoping we get a revenue update for atleast California within the next week or two. He’s done everything I could ask. We have solid market share. A few mistakes were made and some wasted shares/money but I’ve done the same in my own business. No one bats 1.000.
Testing standards vary. Indoor has more harvest per year. Our door typically has one large harvest per year in the fall. There’s ways to manipulate that. So there’s usually an increase in testing demand in the fall. But indoor growers can harvest as much as their system allows regarding many variables. So that will expand revenues from fall to throughout the year, evening out the workload.
We won’t see July numbers on fins until December. But hope for a PR next week with an update. It was done when they had record revenues for Oregon when they had mandating testing. Still won’t be until mid Feb we see all of the labs we have paid for (all the dilution) revenues and will include typical harvest season numbers. Although I believe indoor is becoming the way and indoor farmers harvest year round.
Hopefully in about a week we get some positive numbers updates for July revenues.
April May June. Due Mid August.
For sure. I’m on board with their model and the way it’s going. It is a little discouraging to see downward trends when I’ve been here since SGBY and am well invested but I understand and I just continue to accumulate because I see the big picture and believe it will pan out. They are well positioned and seem to have good people in place. I believe it will soon be mandated from the start as new states come online (PA and NJ). But the fact is the numbers aren’t in. So we have a little more time of sluggishness until model is proven.
I don’t think there is a reason for not lowering. If I had to make one up I would say it’s not their focus right now. They are making moves else where and spending their money on growth. It has an impact to share holder value but nothing does compared to revenues and assets. That’s the focus.
I believe it is but the market is unproven and the laws were just implemented in Cali and other states including Canada don’t have mandating testing. It’s still a theory or idea. Q1 results in Feb will give us a better idea for the demand and market. We know the demand for cultivation and the product but testing isn’t something cultivators want to do its an extra expense and makes growing “harder”. This has to be educated and mandated by government. The people are unaware and only focus on quickest way to pass laws. I believe this is a winner but it’s still in its infancy. Nothing changes until Feb 2019. Maybe small ups with positive revenue updates, which I expect after this month, as was done when Oregon first had testing. Also we’ve spent a lot of dilution acquiring labs that haven’t generated revenue yet, mostly in premature markets. It’s the price you pay to be first. And is the long game. They are well positioned but the market, financials, laws, etc need to catch up. Numbers don’t lie and they haven’t come out yet.
100 million is a good enough safety blanket. If they need more than 100 million shares their business model isn’t good. We should be in the black before then to use profits OR be able to get real financing with proven financials. If we spend 100 million shares before either of those this is a bad business model. So there is no reason to not complete the reduction as stated from 1 billion to 100 million.
For sure but they released an 8k (I think, may have been a PR) about reducing it from 1 billion to 100 million which is definitely enough in my opinion the business needs to be in the black by then to be a successful business model.
I believe there is a follow up to this but I didn’t spend enough time looking for it.
Bend, OR, Sept. 15, 2017 (GLOBE NEWSWIRE) -- EVIO, Inc. (OTCQB: SGBYD) a life sciences company and the nation’s leading provider of analytical laboratory cannabis testing, research and advisory services, is pleased to announce today that the company has successfully negotiated final approval with its lenders to reduce the required share reserves on its outstanding notes and is notifying shareholders that the CEO will now commence the procedure, as authorized by the Board of Directors, to finalize the reduction of the company’s outstanding authorized shares.
"After successful negotiations with our note holders we have completed another important milestone. Today we are following through on the commitment that I made to our shareholders during our recent conference call, to complete the process of the recently enacted 1:100 reverse stock split. Our lenders have already submitted their formal requests to our transfer agent to reduce their existing reserves and the Company is now commencing the process to formally reduce the authorized shares,” stated EVIO Inc. CEO William Waldrop.
Mr. Waldrop continued, “we anticipate that the process will be complete and ready for final announcement sometime next week. From a strategic planning standpoint, the company’s transition to a structure more familiar to equity investors at both the retail and institutional levels, a structure that we believe will better reflect our market potential to realize shareholder value, is almost complete. Starting with our uplisting to the OTCQB last November 2016 thru our 1:100 share consolidation, corporate name and pending ticker change to EVIO last month, this successfully negotiated step completes the restructuring enabling our team to realize the ongoing conversations with investors to fund our next stage of development to expand into the fast-growing California cannabis testing market and opportunities in cannabis science research.
I couldn’t help but add here too. Said I wasn’t going to because I deff have enough and it’s been a rocky ride but I can’t help but believe the pivot point is about here.
“Demand is up 100% this month.”
https://www.leafly.com/news/industry/legalization-inundates-californias-cannabis-labs
Same
I agree. There’s no reason we shouldn’t be over $2million in revenue Q1. WW projected about $10million 2019. So I’d like to see $3million Q1 especially with 4 labs in California.
That article makes me feel California expansion is priority now.
For sure. Well buying the best lab in Oregon means we are now the best lab in Oregon. So we are doing the right things for market share and reputation. Revenues will come. Keep making the smart deals and we’ll be on our way.
Agree. I’m content with the moves and await Q1 revenues mid Feb. This isn’t my only horses but is my largest bet significantly.
Happened with Apple as well. One guy sold his stake in the beginning.
I just hope Oregon’s Cannabis market gets straightened out with the over saturation of supply. There are too many cultivators.
Agree
In complete agreement with you. I’ve been saying Feb 2019.
For sure! They were named best lab in Oregon (I read that somewhere).
You are correct. I misread promissory note. For some reason I thought preferred shares. So I stand corrected. But still feel labs are more important than land at this stage. Although not a bad move. I’m content with recent moves and the different approaches.
I’m not against it. They are doing what’s best for EVIO. There are pros and cons to everything. They seem to be making balanced choices, lease options, real estate, and goodwill purchases all this week. I support it. Just stating my opinion on how it effects as a whole.
I know for me to grow my business I’d rather have leases and use the money to open more locations for more cash flow and more revenues and more market share.
All these things make sense. It’s just at the cost of dilution. That’s all I’m saying. New lease agreements may not be best for long growth and assets of business but they are more share holder friendly. They require less capital up front. It’s just strategy. Neither is necessarily wrong or right. Neither is necessarily better. It’s a matter of opinion and what side you are on. Very long term and best for EVIO or somewhere in the middle and best for share holders. We could probably use $1,000,000 and start another lab or two with new lease agreements instead of owning real estate. So 2 more immediate income sources instead of an invest back into itself at 8% interest.
Good point. So are you content with acquiring labs cash and diluting to own real estate? Versus new lease agreements and build-outs and keeping dilution to a minimum?
IMO, if you choose the real estate you are looking at holding for 5 years or more. Best for long time of EVIO and an asset but short term it holds back.
They paid for the real estate with shares not revenues. They see the future revenues justifying this purchase. Which grows the company. But company growth and success is not the only contributing factor to share price. Obviously purchasing the real estate is a better strategic move as the rent is paid back to themselves BUT if dividing cost of real estate ($1.5million) by the average rent for a 7,000sq ft facility @ $30/sqft (that may be off for this area) it would take 7 years to break even on the return just on the real estate not on the business. I do believe it is the best move. It’s just the long game. And I’m fine with it. Just stating my opinion and facts.
Similar to just because someone driving an expensive car or living in a lavish house doesn’t make them more successful or better off than someone driving an economy car. In most cases people driving luxurious cars are in debt with them but some people living within their means can live debt free. On the surface it appears they are successful but in the paper work and financials they are more than broke.
Company growth needs to be supported with valuable and smart purchases that generate revenue within a specific formula to benefit shareholder value and share price.
Which we’ve been waiting to be reduced. When did that PR come out? I thought EVIO had a year to address.
Yea I agree. But owning the property is good strategy long term. I like to see new build outs with property purchases. Atleast new lease build outs. I hope the revenues support these types of deals.
Cannabis shelf life is long. Months if stored properly. IMO the black market only completely impacts out of state. It is legal to grow so obviously that eliminates some people but is definitely a hobby. Those people may “give” or “trade” to their friends. I believe most people will use dispensaries. Even if you grow your own you are limited to strains and time. A dispensary gives you the flavor and effect you want. The black market doesn’t offer that in most cases at a retail level. Just like those who brew beer or make wine at home. They are hobbiest and enthusiasts, they trade products with other hobbiest and enthusiasts. They still go to bars and buy alcohol from stores. And the most important thing is the bottom customer supports the market and that’s usually 3.5 grams (1/8th) at a time and for $10 to enter a dispensary to get not only tested product and knowing what it’s in it but you also get to select the flavor and effect you want (IPA vs Lager or Vodka vs Tequila).
The relation of cannabis plant life to setting up a lab is irrelevant. Different strains take different times and indoor growers are harvesting year round at different times. There will always be a bump in revenues from annual out door harvest in the fall. The demand for lab testing should already be there with law changes, if everyone is following the law and it is being enforced. A lab build out definitely takes a few months. Evio previously had just a calibration take over 3 months. Hopefully that won’t be the case. But whenever we open the doors now the revenue should be reliable, as long as too many labs don’t start popping up.