Several marijuana business owners recently sat down with 20 attorney generals from across the country to discuss issues surrounding the cannabis industry. The group agreed to start work on a “Code of Responsible Practices” to help govern cannabis companies and promote the trade, despite the fact that many of the attorney generals came from states that did not have existing legal medical or recreational marijuana programs in place.
“The idea is to impose standards so that… regulators feel comfortable with the marketplace practices that are going on, and that will allow for a safe market expansion, which is what attorneys general are looking for,” said Michael Bronstein, lead consultant for the American Association for Cannabis and Hemp to MJBizDaily.
Karen White, executive director of the Conference of Western Attorneys General, added, “In terms of the direction the (attorneys general) are going, what we are saying is, give us your best suggestions… get yourselves organized… get a self-regulatory body in place, or the alternative may not be as appealing to you.”
The new standards would cover everything from childproof packaging to manufacturing and testing standards that must be adhered to across state lines.
Among the attendees was Dr. Cindy Orser of DigiPath Inc. (OTC: DIGP), who gave a lecture titled “Marijuana Legalization Update: Establishing Standards to Address Law Enforcement, Public Safety, and Consumer Needs”.
DigiPath, who recently opened a testing laboratory in Las Vegas, Nevada, wants to introduce high standards for cannabis testing to ensure safety and consistency among products. After an expose in Oregon unveiled dangerous toxins in many edibles, awareness of the lack of testing standards has been on the rise and the company aims to capitalize on the opportunity.
According to GreenWave Advisors, cannabis testing is the most attractive subset of the cannabis industry and could represents an $850 million market by 2020. Testing companies benefit from a number of favorable factors, including high-margin recurring revenue that’s driven by state- and potentially federal-level regulations with a high barrier to entry.
Investors in the cannabis industry may want to consider DigiPath and other cannabis testing companies to gain exposure to the industry, particularly with new standards in the works that would effectively require cannabis firms to test their products regularly.
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