Here’s a summary of the webinar (see prior post): Panel of four labs included Evio COO.
The mod is an investment analyst, Greenwave Advisors.
Evio said they are operating in CA, OR, Canada. MA is awaiting approval from state (where cannabis is closed during COVID).
He asked right away how EVIO is going to turnaround, she said they scaled back growth plans, reduced overhead, and are looking at new revenue streams. She said they had aggressive growth plans early on and are recovering from that over expansion. She said they are moving forward with focus on a few bigger labs.
After that, the webinar was about the future of testing market. Panelists thought testing requirements would get more strict.
ProVerde guy said new entrants will have difficulty since the startup time for a new lab could be 2 years with all the requirements. By then cannabis could be legal. Lori said once customers can mail cannabis samples fewer labs will be needed. Hemp samples are mailed in now.
She said labs will grow by scaling from where they are rather than building new.
Lori said testing market is about 2-3% of cannabis sales. Both Evio and SC said California market is smaller than predicted due to black market and illicit dispensaries that don’t test. About 80% of cannabis in CA is illegal, but some of that will go to legal market with enforcement
Some panelists thought covid wont have a big negative impact on cannabis sales or testing for the established labs. New labs could have difficulties
She also mentioned that COVID is bringing new opportunities. She wasn’t specific on that except said they have PCR equipment and technical resources that are needed now. And that the Canada lab is doing hand sanitizer testing and helping formulate for brewers switching to making it. They said they’ve been affected by supply shortages.
They also talked about advisory services and ways the labs can help growers other than testing.
The panelists talked about federally legal future, they think agriculture and food labs will acquire cannabis labs once they can.
Both SC Labs and Pro Verde said they grew organically over 10 years, and it took time to get there so weren’t looking for new funding.
This is all to best of my recollection, Greenwave advisors recorded the webinar.
I hope this summary is helpful info for this board.
My takeaway is continue to hold. They are operating, and a New York investment advisor thought enough of them to invite to speak. He’s not a paid promoter, so I think that’s a good sign.
