Warning: session_start(): open(/opt/alt/php74/var/lib/php/session/sess_609ac61f331c859ac2c7b14f4a8efd1c, O_RDWR) failed: Disk quota exceeded (122) in /home/useaicwl/public_html/wp-content/themes/mushroomstocks/functions.php on line 278

Warning: session_start(): Failed to read session data: files (path: /opt/alt/php74/var/lib/php/session) in /home/useaicwl/public_html/wp-content/themes/mushroomstocks/functions.php on line 278
Signal Bay Looks To Scale Through Coast To Coast Expansion - Mushroomstocks | Mushroomstocks
Albert Labs announces Strategic Investment from Cantheon Capital LLC for First In-Human TrialsMindMed Reports Full Year 2022 Financial Results and Business HighlightsCybin to Participate in the Oppenheimer 33rd Annual Healthcare ConferenceNuminus to Participate in the Sequire Cannabis & Psychedelics Conference on Wednesday, April 5, 2023Braxia Scientific Provides Update on Proposed Irwin Transaction; Company Retains Strategic Clinical Assets and Ketamine Numinus Announces Four Peer-Reviewed Publications from its Chief Clinical Officer in 2023Irwin Naturals Signs Letter of Intent to Acquire Braxia ScientificNuminus Wellness Inc. Reports Q1 2023 ResultsIrwin Naturals and Braxia Scientific Announce Partnership for In-Human Clinical Studies Supporting Pharmaceutical CompanNuminus Develops Mushroom Tea for Use in Psychedelic ResearchIs the Psychedelic Sector Poised for a Comeback?!?PSYC + Nucleus Form New Partnership to Develop and Launch Psychedelic FinderWhat You Need to Know About Numinus Wellness…Numinus provides update on acquisition integration and announces new client financing optionsPSYC Corp’s Psychedelic Spotlight Surpasses One Million Page Views for Fourth Consecutive MonthNuminus to Participate in the H.C. Wainwright 24th Annual Global Investment Conference on September 12-14, 2022The Psychedelic Sector is Quietly Outperforming the S&P 500PSYC Completes and Publishes 2021 Audited Financials; Will Begin Audit of Q1 & Q2 2022Numinus to Participate in the H.C. Wainwright 24th Annual Global Investment Conference on September 12-14, 2022PSYC’s Bonfire Platform Development Progresses; Will Host Free Virtual Community Event on August 29th

Signal Bay Looks To Scale Through Coast To Coast Expansion

Jul 19, 2017 • 3:25 PM EDT
Aurora (5).png
5 MIN READ  •  By Michael Berger
Share Share - Facebook Share - Twitter

The United States legal marijuana market is in the middle of major growth cycle with 29 states and the District of Columbia having legalized medical marijuana.

Nevada recently became the fifth state to have an active recreational marijuana market and the state has seen a major spike in demand for legal marijuana.

Demand for Legal Marijuana Continues to Grow

Demand for legal marijuana continues to increase as new markets open and existing markets expand. This trend is just getting started and has created countless opportunities for ancillary businesses.

One of the biggest beneficiaries of the legal marijuana movement will be the companies that provide lab testing services for marijuana cultivators and dispensaries. As legalization initiatives continue to be implemented across the country, there will be an increased demand for reliable cannabis testing facilities.

Before states created a legal marijuana market, consumers would buy product from the black market. The products purchased off the black market are not regulated and may contain harmful pesticides, fungicides, mold, heavy metals, and additives.

To protect consumers, most state governments have passed legislation requiring marijuana producers to have their products tested for potency as well as for potential harmful ingredients at independent testing facilities before allowing the products to go on the market.

Focused on a Coast-to-Coast U.S. Expansion

Last week, we highlighted a public company focused on this opportunity. Signal Bay (SGBY) operates testing facilities and offers accredited testing methodologies that verify the safety and potency of cannabis.

Its cannabis laboratory services division, EVIO Labs, operates laboratory testing facilities and offers accredited testing methodologies that verify the safety and potency of cannabis. The company has operations in Oregon and California (5 operational laboratories) and applies a more stringent methodology when it comes to the services provided.

The lab testing industry is expected to see incremental growth over the next few years and Signal Bay plans to capitalize on this growth by creating a coast-to-coast footprint in the United States.

Continues to Execute on its Planned Expansion

Yesterday, Signal Bay rallied more than 25% after the company announced that it has executed a long-term lease and will start providing analytical testing services to the southern California cannabis market.

The company plans to increase its pressure by entering new markets throughout the United States in places where medical marijuana is legal. Yesterday’s development took place less than a month after Signal Bay signed a letter of intent to acquire Massachusetts-based cannabis testing lab Viridis Analytics MA.

Signal Bay CEO William Waldrop has high aspirations for his company and plans to be the go-to laboratory in California, potentially the largest legal cannabis market in the world. Waldrop believes that Costa Mesa was the perfect location for Signal Bay to plant its flag and establish a central hub lab that caters to the entire southern California market (San Diego, Los Angeles, San Bernardino, Inland Empire, and more).

It does not take too long for a laboratory testing company to get situated and Waldrop expects the Costa Mesa lab to be operational in five months, which coincides perfectly with the opening of California’s legal recreational marijuana.

Developments to Watch

In 2016, California generated approx. $2.8 billion in revenue from medical marijuana. Many experts expect the legal recreational and medical marijuana market to be a $10+ billion industry in California by 2020. 

Through inorganic (acquisitions) and organic growth opportunities, CEO Waldrop plans for Signal Bay to have a central hub lab in every major market and to be the household name in cannabis testing.

We are favorable on these developments and they are in-line with their growth strategy. The California and Massachusetts marijuana markets are very attractive due to their growth potential and strategic location. 

We reached out to Signal Bay CEO William Waldrop and asked him two questions that we had regarding the recent developments.

When do you expect to start generating revenue from the California lab and how do you expect revenue from this asset to grow once the recreational marijuana market opens?

We anticipate the Southern California lab to be operational in First quarter of 2018.  The local licensing process in Costa Mesa will take 4-5 months.  During this timeframe, we will be completing tenant improvements, hiring, installation and optimization of equipment.  As we experienced in Oregon, we foresee a sizeable jump in revenues after July 1, 2018 when mandated testing goes into effect. 

What are the next big catalysts for the cannabis lab testing market?

The big catalyst for the California Market will be the timing of California issuances of licenses.  Upon issuance, these cultivators and product manufacturers will be required to perform mandated testing.  Other key catalysts will be the formal timing of recreational testing in states like Massachussetts.

If you have any questions, send them to support@mushroomstocks.com and we will get an answer for you! 


Stay up to date on the GreenRush by subscribing to Mushroomstocks… 


Important Investor Disclosures 

Paid affiliate.This report was authored by and is property of Mushroomstocks.  All information and data relied upon in drafting this report is publicly available.  The author believes and considers its sources to be reliable, but does not guarantee the accuracy or completeness of any information contained in this report.  Any and all information, data, analyses and opinions are provided for informational purposes only and is not intended, in any manner, as investment advice.  Any projections or other information generated by Mushroomstocks regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.  None of the material contained in this report is intended as a solution or offer to sell or purchase a specific stock or any other investment.  This report is not directed to, or intended for distribution or use by, any person or entity that is a citizen, resident or located in any municipality, state, country or other jurisdiction where the distribution, publication, availability, or use of this report is contrary to any governing law or regulation.  The securities discussed in this report may not be eligible for purchase and/or sale in certain jurisdictions or by particular individuals.  It is important that you check any and all governing laws and/or regulations that may be applicable in your jurisdiction.  Investing in securities of issuers organized outside of the United States, including ADRs, entail certain risks.  The securities of non-United States issuers may not be registered with, nor be subject to the reporting requirements of the United States Securities and Exchange Commission.  Please contact a Financial Advisor for professional advice regarding any and all securities investments.  This report is intended for informational purposes only

Share Share - Facebook Share - Twitter


Authored By

Michael Berger

Michael Berger is Managing Partner of StoneBridge Partners, LLC and Founder of Mushroomstocks.com. Prior to entering the cannabis industry, Michael was an Equity Research Analyst at Raymond James Financial covering the Energy Sector. Michael has been featured in publications such as The Street, Bloomberg, US Money News, and hosts various cannabis events across North America.


Top Stories

Get the Latest Cannabis News & Stock Picks.

Enter your email below to join the official Mushroomstocks newsletter.

 All good -- no spamming here.

The psychedelics sector is starting to take off as smart money begins to position itself across the industry.

Stay updated with all latest updates,upcoming events & much more.

Fatal error: Uncaught ErrorException: md5_file(/home/useaicwl/public_html/wp-content/litespeed/css/23c0278adc5cbc846dbd778ef778cf7b.css.tmp): failed to open stream: No such file or directory in /home/useaicwl/public_html/wp-content/plugins/litespeed-cache/src/optimizer.cls.php:126 Stack trace: #0 [internal function]: litespeed_exception_handler(2, 'md5_file(/home/...', '/home/useaicwl/...', 126, Array) #1 /home/useaicwl/public_html/wp-content/plugins/litespeed-cache/src/optimizer.cls.php(126): md5_file('/home/useaicwl/...') #2 /home/useaicwl/public_html/wp-content/plugins/litespeed-cache/src/optimize.cls.php(797): LiteSpeed\Optimizer->serve('https://mushroo...', 'css', true, Array) #3 /home/useaicwl/public_html/wp-content/plugins/litespeed-cache/src/optimize.cls.php(319): LiteSpeed\Optimize->_build_hash_url(Array) #4 /home/useaicwl/public_html/wp-content/plugins/litespeed-cache/src/optimize.cls.php(252): LiteSpeed\Optimize->_optimize() #5 /home/useaicwl/public_html/wp-includes/class-wp-hook.php(310): LiteSpeed\Optimize->f in /home/useaicwl/public_html/wp-content/plugins/litespeed-cache/src/optimizer.cls.php on line 126