EVIO Inc (OTCMKTS:EVIO) Is A Prime Turnaround Play

Since its five year high of $9.99 and a brief rally to $3.99, EVIO Inc (OTCMKTS:EVIO) has been on a steady decline. That is until recently where it has begun to show some signs of life, nearly doubling its value from $0.6 to $1.15 within a week.In this article, we provide you information on EVIO Inc and the cause of this turnaround.First, take a look at the stock’s price action for the past year EVIO Daily ChartCompany ProfileEVIO, Inc. provides advisory, management and analytical testing services. It operates through the following segments: Corporate, Consulting Services and Testing Services. The Corporate segment provides the overall management services and corporate reporting function for the entire organization. The Consulting Services segment provides advisory, licensing and compliance services to the cannabis industry under its brand Signal Bay Research. Its clients are located in states that have state managed medical and/or recreational programs. The Testing Services segment provides analytical testing services to the cannabis industry under the EVIO Labs brand. Its clients consist of growers, processors and dispensaries. The company was founded on December 12, 1977 and is headquartered in Bend, OregonEVIO, Inc., together with its subsidiaries, provides advisory, management, and analytical testing services to the legalized cannabis industry in the United States. It also publishes industry information through online media, research reports, and publications; and operates CANNAiQ.com, a business to business information portal, as well as MarijuanaMath.com, a general interest informational Website. In addition, the company provides Cannabis Consultant Marketplace, an outsourcing freelancing matching platform to enable cannabis companies to post projects and hire consultants. Further, it offers analytical testing services, such as residual solvent analysis, pesticide screening, microbiological screening, terpene analysis, and cannabinoid potency profiling of cannabis and cannabis infused products to growers, processors, and dispensaries. The company was formerly known as Signal Bay, Inc. and changed its name to EVIO, Inc. in September 2017.Recent DevelopmentsRecently, the company announced that its Colorado Licensee, PhytaTech CO, has attained ISO 17025 accreditation. ISO 17025 is the highest recognized quality standard in the world for calibration and testing laboratories. For an organization to be accredited in ISO 17025, its laboratory must be able to consistently produce precise and accurate tests and have implemented a rigorous quality management system.Stephen Goldman, PhytaTech’s Laboratory Director explained that as one of only a few Colorado Cannabis Testing labs that have achieved ISO 17025 accreditation, PhytaTech is at the leading edge of testing in the state. He outlined that the achievement embodies PhlaTech and EVIO’s commitment to the highest standards at every step of the testing process.EVIO Labs declared its pride that PhytaTech is now accredited to the same high-level of standards as its labs in Oregon, which are accredited to the even more highly rigorous ORELAP standard. The firm remains committed to ensuring all labs incorporate the highest quality standards in the industry and is in the process of obtaining ISO 17025 accreditation for its labs in Florida, Massachusetts and California.Earlier in the December the firm signed a non-binding letter of intent to acquire 60% of C3 Labs, LLC. This acquisition fast tracks EVIO Labs' expansion into Northern California to meet the upcoming demand for analytical testing services.Located in Berkeley, CA, C3 Labs has been serving the cannabis industry since 2015. a C3 Labs has been issued a Cannabis Research and Development business license by the City of Berkeley that permits them to provide cannabis scientific research, product design, development and testing. C3 Labs was one of the nation's first, true, cannabis-focused contract research organization (CRO), with both field services and a state of the art research center in beautiful Berkeley, California. C3 Labs' highly experienced scientists and engineers utilize cutting edge technology to support their customers in analytical chemistry, process chemistry, formulations, and engineering.C3 Labs applies technologies employed by the food product and pharmaceutical industries to ensure that growers and processors operate in a fully compliant and quality manner and helps clients maintain the highest level of safe and effective medicinal products. Their staff has over 40 years of collective hands-on analytical expertise working in the Pharmaceutical and Petrochemical industries with 7 years of experience consulting to the FDA, USDA, and EPA, as well as the companies regulated by these agencies.The proposed transaction is subject to customary closing conditions, including both parties completing due diligence and obtaining any approvals from applicable local authorities. The closing is conditional on negotiating final agreements in addition to the other closing conditions. Assuming completion of these conditions, the transaction is expected to close in the first quarter of 2018.Financial PerformanceIn EVIO Inc’s reported financial results for the quarter ended June 30, 2017. 3Q2017 revenue was $0.77 million, up 566% compared to 3Q2016.Through the nine months ended June 30, 2017, the firm earned $2.28million, compared to $0.39 milion for the same period in the year prior, resulting in an annual year on year increase of 482%.Its 3Q2017 testing revenues remained relatively unchanged at a 3% increase compared to the prior quarter. Whereas there was a decline of 89% in consulting revenues compared to the prior quarter to $9,345.ConclusionWith EVIO Inc (OTCMKTS:EVIO) showing consistent signs of improvements in its performance, it is clear that the firm has enough potential to be come a major industry player again.We will be updating our subscribers as soon as we know more. For the latest updates on EVIO, sign up below!Disclosure: We have no position in EVIO and have not been compensated for this article.