Leaf Detective sued Evio, Inc

In 2018, Evio,Inc. announced an agreement to.purchase Leaf Detective, Humboldt County’s first licensed cannabis testing facility.

Two years later, Gordon Griswold and Michele Malaret sued Evio, Inc. 

On June 7, Mr. William Stein appeared on behalf of Liz Griswold and Malaret. Gordon Griswold has passed away. Since they are local, I am assuming it is Mr. Stein from Janssen and Malloy.

Richard Andrews appeared on behalf of Evio, Inc. 

Lori Glauser was there for Greenhouse Analytical Labs. It is a 100% owned subsidiary. Last time, Mr. Stein had asked Glauser for a bank account number. She asked for counsel.

Mr. Andrews said this was not the scope of  judgement. There is no order or writ regarding subsidiaries, he said. "They cannot levy against accounts not party to litigation."

"It is a bit of overrreach, Mr. Stein," said Judge Neel.

The parties were continuing a hearing and after these brief comments went into a Zoom breakout room to have  private discussions.

2018 Press Release:

EVIO Inc. a leading provider of cannabis testing and scientific research for the regulated cannabis industry, is pleased to announce that it has executed an asset purchase agreement to acquire 100% of California-based testing lab, Leaf Detective, LLC.

Leaf Detective, Humboldt County’s first licensed cannabis testing facility, is an independently owned and operated testing facility dedicated to providing accurate results in a timely manner. The lab specializes in analytical laboratory testing for medical marijuana dispensaries, cannabis manufacturers, producers and consumers.

Due to California’s July 1 testing deadline mandating licensed retailers to sell only lab tested product, the industry is predicting a shortage of testing services and delays in getting approval to sell the products. This strategic acquisition is part of EVIO’s efforts to further expand into the state to meet increasing demand for analytical testing services.

“Leaf Detective holds one of only 28 licenses issued by the Bureau of Cannabis Control to testing facilities. Upon completion of this acquisition, we will upgrade the facility to meet new testing standards and plan to be operational by end of third quarter,” said William Waldrop, CEO of EVIO Inc. “Our goal is to continue to improve consumer safety and increase shareholder value by capturing additional market share.”

A recent report from industry research firm, BDS Analytics, estimates that California cannabis sales will reach $3.7 billion by the end of 2018 and predicts an increase to $5.1 billion in 2019. Leaf Detective is located in the Emerald Triangle region, the largest cannabis-producing region in the United States, giving EVIO increased exposure to clientele.

Pursuant to the Agreement, EVIO Inc., will form a new entity, EVIO Labs Humboldt, to purchase 100% of Leaf Detective business assets including equipment, brand, customer lists, customer contracts, rental agreements, and equipment leases for total consideration of US$500,000 in a Convertible Promissory Note, convertible at $1.25 per share.

EVIO, Inc. is a leading provider of cannabis testing and scientific research for the regulated cannabis industry. The Company’s EVIO Labs division operates coast-to-coast providing state-mandated ancillary services to ensure the safety and quality of the nation's cannabis supply.  EVIO is on track to have 18 of its state-of-the-art testing facilities by year-end 2018.

For more information, visit www.eviolabs.com.