Microscopic bugs and mildew are becoming a multi-million dollar crisis for many marijuana growers, which have led many of them to turn to industrial-strength chemicals that are raising concerns over safety, according to the Associated Press.
The recent AP article points to a number of troubling events:
- The City of Denver quarantined tens of thousands of marijuana plants growing at 11 facilities after health inspectors suspected the use of unauthorized pesticides.
- The Oregonian newspaper found pesticides in excess of legal limits on products ranging from marijuana buds to concentrates and oils sold in the state.
- Washington State is still working on its pesticide rules, despite existing legalization, while California doesn’t have any regulations at all.
These dynamics mean that unscrupulous pot growers can use banned chemicals with little chance of detection.
The U.S. Environmental Protection Agency typically governs what pesticides can be used on crops throughout the United States, but since marijuana remains an illegal drug on a national level, the agency can’t govern how it can be grown. While a so-called “special local need registration” is in the works, the process could take years to complete, which means that the market could remain unregulated for some time to come.
DigiPath Inc. (OTCQB: DIGP), a provider of cannabis testing services in Nevada, aims to bridge the gap and reassure growers, sellers, and consumers by providing extensive testing services. With a state-of-the-art lab that’s already state approved and operational in Las Vegas, Nevada, the company analyzes samples to detect pesticides and other harmful contaminants.
The company also addresses another growing problem within the market – the inaccuracy of THC and CBD levels on labeling. In a growing number of cases, labels have been found to inaccurately disclose the amount of THC and CBD in medical and recreational marijuana, which both poses a risk in the case of THC and could reduce efficacy in the case of CBD. DigiPath’s lab testing services helps ensure that these levels are accurately reported all the time.
GreenWave Advisors recently highlighted the potential size of the cannabis testing industry at an astonishing $850M per year by 2020. In the report, the analyst firm called the cannabis testing segment of the industry “one of the industry’s most attractive plays” given the fully-legal nature of the business, growing number of requirements at a state level, and high barriers to entry in terms of opening new and approved labs in states where the drug has been legalized.
For more information, visit the company’s website at www.digipath.com.
Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Important factors that could cause these differences include, but are not limited to, the demand for the company’s services and the company’s ability to execute its business plan. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claim to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, has been compensated for its services in the form of cash and equity securities by DigiPath. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.