Waldrop added that the deal allows EVIO to focus on taking market share in California, as demand for testing services throughout the state is “expected to increase significantly.” The companies expect the acquisition to close by the first quarter of 2018 and is subject to customary closing conditions, including due diligence from both C3 Labs and EVIO, as well as applicable local authorities.
California Deals Increase
According to ICF, the California marijuana market is projected to be $7 billion by 2020. This has caused a flurry of deals to happen as companies try to get ahead of the growth. Canadian-based CannaRoyalty recently acquired Bhang vaporizer company Kana Management and Bhang’s distributor Alta Supply company. Toronto-based Nutritional High acquired California distributor Calyx Brands in November. Also in November, medical marijuana company Cannabis Sciences (CBIS) acquired three dispensaries in the Los Angeles market to speed up its expansion.