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Digipath Takes Over Management & Signs Letter of Intent to Acquire Majority Control of Steep Hill’s Licensed Northern California Lab from Evio Labs
Digipath Takes Over Management & Signs Letter of Intent to Acquire Majority Control of Steep Hill’s Licensed Northern California Lab from Evio Labs.
About this update from Evio, Inc.
[{"type":"text","content":"\n Acquisition Would Extend Multi-State Operator (MSO) Strategy LAS VEGAS, NV, Dec. 07, 2021 (GLOBE NEWSWIRE) -- via NewMediaWire -- Digipath, Inc. (OTCQB: DIGP) (the “Company”), a service-oriented independent analytical testing laboratory and data company focused on the cannabis and hemp markets, announced today that it has signed a letter of intent to acquire a controlling interest in a Berkeley, CA based cannabis and hemp testing laboratory from EVIO, Inc. (OTC PINK:EVIO) in exchange for shares of Digipath’s common stock. The lab acquisition would immediately make Digipath a Multi-State Operator (MSO) and would be the Company’s first in what it hopes will be similar future purchases wherein the Company acquires existing labs and increases profitability using Digipath’s proven methodology and business model. The Berkeley lab is fully licensed in California with state-of-the art equipment and complete redundancy. Digipath is already managing the lab under a management agreement pending the closing of the transaction.  Based on current projections, the Berkeley lab is expected to more than double revenue of the next calendar year. California is widely regarded as one of the leading cannabis markets in the world and its residents as the third largest consumers of cannabis in the world. California has instituted strict regulations requiring all cannabis products to receive a Certificate of Analysis from a state-licensed testing lab prior to distribution. This has been a boon for the cannabis testing market in California, making it the fastest growing segment within the cannabis industry. Over 100 Certified Analytical Testing Labs are needed to meet California’s current demand according to California’s Bureau of Cannabis Control (BCC). There is a severe shortage of qualified testing facilities with only 35 such certified labs operating in California currently. “The acquisition of this laboratory would accelerate implementation of our strategy to become a multi-state operator (MSO) of cannabis and hemp testing labs,” stated Todd Denkin, Digipath Founder and President. “California has followed Nevada and other states by mandating strict testing guidelines for cannabis and related products.  With only 35 cannabis testing labs in California to ser...