An opportunity has opened up in EVIO stock on a major buy the dip gambit.

The Board of Directors recently addressed the reason for the decline in stock price and market capitalization.

During the last four weeks certain company noteholders have exercised their right to convert over $1.3 million in convertible promissory notes into Common Stock. The Common Stock was issued under Rule 144 and had been subject to applicable holding periods before it could be sold. The notes were previously taken to execute the company’s growth plans and retire debt. Upon the filing of the 10Q for the period ending June 30, 2019 on November 15, 2019, the company became current on its SEC filing requirement and OTCMarkets upgraded EVIO from a stop sign to pink status, which allowed certain noteholders to exit out of their positions.

William Waldrop, Company CEO stated: “These convertible notes have had a dramatic impact on our stock price in recent weeks as multiple noteholders simultaneously converted their notes into common stock at a discount to the market price. The volume and frequency of these conversion have put considerable downward pressure on the stock price.”

Lori Glauser, COO stated: “Sales and revenue growth are stronger than ever. The recent hemp and cannabis harvests have led the company to record sales, while our turnaround times have been reduced to 3 to 5 days. Our website hemptesting.com is attracting new hemp and CBD customers from around the world.”

It is management’s opinion that at the Company’s current market capitalization, the Company is undervalued. The Company anticipates that the share price may continue to be volatile in the coming weeks.

In EVIO’s last shareholder update, the Company stated that it was shifting attention from aggressive market expansion to focus on profitability and optimizing current operations. This focal shift has been very successful, as recent filings demonstrate the company’s commitment to corporate initiatives. Revenue for the third quarter, ending in June 2019, increased by 84%, compared to the same period in 2018. Meanwhile, gross margins improved from -32% to -1%. To achieve these figures the company has increased sales across all of EVIO’s operating labs, developed and invested in the company’s strong team members, and optimized staffing levels. The company’s labs continue to meet client demand for accurate, consistent results, while also providing a fast turnaround time.

The Company’s plan for 2020 honors its prior commitments, making operational improvements to achieve a path towards profitability and to prepare the company for expansion into additional targeted markets as cannabis legalization continues its rapid progression across North America.

EVIO stock has really sold off as the fundamentals have improved. This divergence between fundamentals and stock price is likely going to be temporary if the company’s Board is correct.

EVIO News From Google