Nevada legalized medical marijuana 15 years ago, but dispensaries are just now becoming a reality in the state. Given its large tourism industry and reciprocity laws, some analysts have projected that the state’s cannabis industry could exceed $100 million in size over the coming years. The only thing holding the industry back are three bills that are currently pending in the state legislature which will finalize what the cannabis labs will be required to test for.

From an investor perspective, there are many different ways to capitalize on the state’s burgeoning new market. Blue Line Protection Group (OTC: BLPG) recently announced that they are fully licensed to provide their full suite of services in Nevada, while Taylor Consulting Inc. (OTC: TAYO) has begun scouting Nevada real estate locations to expand their business model.

The nearest term opportunities, however, may be in the cannabis testing space, where DigiPath Inc. (OTC: DIGP) plans to be one of the state’s first laboratories to open. Per the law, a private, state-licensed laboratory must test each batch of cannabis before it can be sold to the public or to third party producers of refined cannabis products such as edibles or concentrated hash oils.

With testing protocols finally close to being established, and the opening of their lab seemingly imminent; DigiPath has begun to receive significant press attention. In a recent News 3 LV piece discussing the state’s newly minted cannabis industry Darlene Purdy, who operates a dispensary in Nevada, said “You can’t have a product in here until you can actually open… So, we’re just waiting for a lab to be open in Las Vegas to test our product … Right now, we’re getting 20 to 30 calls a day. We’re probably going to be pretty busy, especially in the beginning.”

According to a recent news segment, DigiPath’s lab is ready to go after having purchased over a million dollars’ worth of equipment, pending final resolution of the State’s regulations. This first-mover advantage could be significant as the testing of their product is the last step dispensaries are waiting for before being able to sell potentially tens of millions of dollars worth of cannabis a year.

The new law specifically states that 12 grams of each 5-pound batch of harvested marijuana must be tested The tests themselves will check for contamination, potency, and a variety of other state-mandated factors required before the drug can be sold.

Marijuana Business Daily estimates that Nevada’s cannabis market would be worth anywhere from the tens of millions to more than $100 million. Some analysts mention that they would not be surprised if out-of-state sales of medical marijuana account for 30% to 40% of overall dispensary sales, especially given the state’s relaxed reciprocity laws that could make it a destination for “marijuana tourism”.

A second independent source, NerdWallet, puts the state in the third highest category for potential marijuana sales, with an estimate of between $50 and $100 million. With this analysis primary focused on domestic users, the potential to target tourists in Las Vegas could amplify those estimates by a factor of 1.5x to 2x or more, especially as the drug becomes more ubiquitous throughout society.

Investors interested in the cannabis testing industry, including companies like Pazoo Inc. (OTC: PZOO), CannLabs Inc. (OTC: CANL), or Abattis Bioceuticals Corp. (OTC: ATTBF), may want to take a closer look at DigiPath given its unique first-mover opportunity in Nevada’s burgeoning cannabis industry. With no debt, and $3.6 million in cash (as of their latest 10-Q filing), the stock is worth taking a closer look at.

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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 claims 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: