By Joseph Ditzler

The Bulletin

A Bend-based marijuana testing and consulting company has acquired a majority interest in a California testing lab.

Evio Inc., which owns a testing lab in Bend on O.B. Riley Road, announced its acquisition of C3 Labs LLC on Tuesday, a day after legal, recreational marijuana became available to adults in California. C3 is located in Berkeley, California, where Evio CEO William Waldrop said Evio would also consolidate its lab operation in Yuba City, California. Evio has another cannabis-testing operation in Costa Mesa, California, which he said is going through the licensing process.

Evio Inc. promised to pay $500,000 in cash and stock for 60 percent ownership of C3, due in six months, with another $450,000 promised three months after that for another 30 percent share, Waldrop said Tuesday. The remaining 10 percent will be subject to “mutual agreement,” he said.

Former parent company Signal Bay Inc. changed its name in September to that of its lab division, Evio Inc., which accounts for most of its revenue, according to a company news release at the time. Evio also operates marijuana testing labs in Portland, Medford and Eugene.

“The benefits we have coming from Oregon are that we went through this process in October 2016,” Waldrop said. “There are a number of key learnings we are now able to apply and educate our customer base in what a regulated environment looks like.”

Evio in September 2016 was the first cannabis testing lab in Bend to be accredited by the Oregon Environmental Laboratory Accreditation Program, an arm of the Oregon Health Authority. Evio came online just as a lack of testing labs in Oregon was creating a bottleneck ahead of an Oct. 1, 2016, deadline for all recreational cannabis to be tested by an accredited lab.

Evio, a publicly traded company, stands to capitalize on a need for cannabis testing labs as California stands up its own recreational cannabis market. The testing regimen in California is similar in that it looks at cannabis potency, residual solvents and pesticides, but only tests cannabis and its processed products at the distribution level, Waldrop said. Oregon, by contrast, tests cannabis and its products from growers and processors.

Evio also owns a testing lab in Massachusetts and licenses its proprietary testing methods to two cannabis labs in Florida and one in Colorado.

— Reporter: 541-617-7815,