DigiPath Inc. (OTC: DIGP), a leading provider of cannabis testing through its DigiPath Labs subsidiary, has been steadily expanding its client base since opening its flagship cannabis testing lab in Las Vegas, Nevada.
On November 9th, the company announced a deal with Las Vegas Herbal Growers to perform all of their cannabis safety and potency testing. DigiPath Labs will test the material for moisture content, potency, terpenoids, foreign matter, microbials, mycotoxins, heavy metals, and pesticide residue using its top-of-the-line equipment and exacting standard operating procedures in order to meet the State of Nevada’s stringent standards.
“We know we’d found the right testing lab when we met with DigiPath Labs,” said the owner of Las Vegas Herbal Growers in the press release announcing the deal. “Like us, they truly care about patient safety, and the care they put into setting up and operating the lab proves it. We look forward to working with DigiPath Labs for many years to come.”
The move follows similar contracts signed earlier this year with local growers. As of early October, the State of Nevada has permitted three dispensaries to open and certified another 52 through the Department of Public and Behavioral Health. The market for cannabis testing services could expand even further in November of 2016, with an initiative to legalize adult-use marijuana widely expected to pass by pollsters.
“We expect that the growth in the Nevada cannabis industry will be exponential over the next few years,” said DigiPath Inc. CEO Todd Denkin in a past press release announcing new clients in late-September. “And because Nevada has the strictest testing requirements in the country, everything will need to be tested before it reaches users. These regulations should make DigiPath Labs an essential player in the statewide cannabis community.”
DigiPath Inc. Chief Science Officer Dr. Cindy Orser, Ph.D., has also been pushing for unified cannabis testing standards throughout the country. After working with Nevada to draft its testing standards, she attended the Conference of Western Attorneys General to adopt those standards in other states that have legalized the drug. The hope is to create a unified system rather than voluntary standards that remain commonplace across the country.
Shares of DigiPath Inc. have been trading relatively even at between $0.17 and $0.20 over the past couple of weeks as the company continues to make progress operationally.
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, governmental regulation of the cannabis industry, 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/.