The Company Continues to Meet Critical Milestones and Exceed Sales Projections
SANTA MONICA, CA, Dec. 12, 2016 /PRNewswire/ - Online Media Group Covers Signal Bay (OTCQB: SGBY)
Signal Bay, Inc., market leader in cannabis quality control testing and laboratory services announced today that the company achieved record sales growth for the second month in a row. November revenues exceeded the record setting cash flow announced last in October by over 50%. Signal Bay believes that 2017 will be a breakout year and the company will continue to accelerate for the forseeable future.
Through its three subsidiaries: EVIO Labs, Signal Bay Research and Signal Bay Services; the Company provides research, consulting services, and analytical testing services to the legal cannabis industry. The Company's EVIO Labs division operates state-of-the-art testing facilities and offers accredited testing methodologies performed by a qualified team of scientists to ensure the safety and quality of the nation's cannabis supply.
As the legalization of medical and recreational marijuana sweeps across the country, demand for reliable, independent cannabis quality control testing facilities is increasing dramatically nationwide.
Signal Bay is currently the dominant player in the Oregon cannabis testing market and expanded its standard-setting EVIO Labs into California, a $300 million cannabis testing market that is largely unserved. Signal Bay plans to acquire and operate 18 EVIO Labs in California by the end of 2018. By 2020, the Company plans to operate 30 EVIO labs generating over $45 million in annual revenues.
In a previous press release CEO William Waldrop stated:
"In conjunction with the new Oregon regulatory environment and the fall cannabis harvest, we are continuing to see increased testing revenues for our EVIO Labs Division. For the month of November, the company set another record month generating over $345,000 in revenue." These revenue numbers are preliminary and have not yet been audited or reported in accordance with GAAP standards.
Mr. Waldrop attributes Signal Bay's unique capacity to dominate its respective market and produce month-over-month sales growth to the Company's unique "hub & spoke" business model, a model that management has likened to Quest Diagnostics (DGX) the world's leading provider of diagnostic information services. Recent rule changes on cannabis testing requirements in Oregon, where Signal Bay covers approximately 95% of the cannabis testing market, have proven to be significantly beneficial to the growing company.
In a recent press release, Waldrop further explained:
"The Company is motivated by the recent rule changes impacting testing requirements in Oregon. The new Oregon Health Authority temporary testing rules allow for smaller cultivators and processors to now economically participate in the marketplace whereas two months ago, the cost of testing was a barrier to entry"
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SOURCE Online Media Group Inc