DigiPath Opens Flagship Cannabis Testing Laboratory and Signs Initial Client

SEATTLE, WA / ACCESSWIRE / June 1, 2015 / As a leading tourist destination,
Las Vegas could quickly become a hub for medical marijuana tourism. Some
analysts believe the state’s medical marijuana industry could top $100 million
per year in revenue, particularly given its reciprocity provision that permits
the use of out-of-state permits to purchase the product.

DigiPath Inc. (OTCQB: DIGPD), a
provider of reliable testing, education, training, and information to the
burgeoning cannabis industry, announced the grand opening of its flagship
cannabis testing laboratory in Las Vegas on May 27, 2015. As one of the few
laboratories to open in the state, the company could benefit handsomely from
skyrocketing demand from dispensaries for the testing services needed to bring
products to market.

In a recent interview, CannabisFN’s
Mike Elliott sat down with DigiPath’s President Todd Denkin to discuss the
recent laboratory opening and the company’s future in the space:

CannabisFN CEO Interview with Todd Denkin, CEO of DigiPath (OTCQB: DIGPD) from TDM Financial on Vimeo.

Early to Market

DigiPath’s Las Vegas marijuana
analytical testing laboratory has been officially certified and opened
to the public for testing services. Equipped with state-of-the-art
analytical instrumentation and the experienced Dr. Cindy Orser, PhD, at the
helm, the laboratory has set a high standard for the rest of the cannabis
testing industry and is one of the first such labs to open within the state –
positioning it to capitalize on growing demand.

“This is a great day for the
patients of Nevada who will benefit from medical marijuana,” said DigiPath Inc.
CEO Todd Denkin in the press release announcing the launch. “Our analysis not
only helps product producers and dispensaries screen out products with
dangerous levels of contaminants, we also quantify the medical compounds
present in samples, so patients and caregivers can choose products that have
been shown to relieve their symptoms.”

Cannabis testing is a relatively
new phenomenon within the industry. In fact, Colorado only began requiring
product testing a year ago after a series of overdoses on edibles made the
news, while Washington State didn’t require testing until legalizing
recreational marijuana back in 2013. Nevada has learned valuable lessons from
these early industry pioneers and taken the time to develop comprehensive
testing requirements to ensure safety and measure potency.

The company hopes to become a
leader in the space by taking an approach that’s more similar to established
drug testing companies, like Psychemedics Corporation (NASDAQ: PMD), Bio-References Laboratories (NASDAQ: BRLI), or Quest Diagnostics (NYSE:
DGX), than typical micro-cap cannabis laboratory stocks with limited expertise,
little capital investment, and no history of being involved in any kind of
medical industries at all.

Initial Revenue

The launch of DigiPath’s Las Vegas
laboratory has generated a lot of interest among clients looking to avoid
backlogs and prepare for the near-term opening of the market. On May 28, 2015,
the company
announced a one-year agreement with Euphoria Wellness to conduct
comprehensive safety and potency testing on the products it plans on selling in
their Las Vegas-based medical marijuana dispensary when regulators open the
door.

“Detailed cannabinoid and terpenoid
potency reports from DigiPath Labs will enable Euphoria Wellness employees to
recommend specific products to patients,” said Darlene Purdy, Managing Director
at Euphoria Wellness, in a recent press release announcing the one-year agreement.
“We will also educate patients, so that they are able to choose products based
on the medicinal properties listed in DigiPath Labs’ reports in the future.”

The Euphoria Wellness agreement is
likely the first of many agreements with Las Vegas dispensaries and growers
looking to ensure quality and meet regulatory guidelines. With the official
guidelines set to be published in the near future – including pesticide levels
– the company could see an influx of clients looking for its services ahead of
the full roll-out of the state’s medical marijuana program – and these levels
are only set to increase.

Looking Ahead

DigiPath isn’t the only player in
the Las Vegas testing market – Pazoo Inc. (OTC: PZOO)
and its MA & Associates LLC partner have also been working on facility in
the area – but the company is likely one of the most promising diversified
players in the space. In addition to cannabis testing, DigiPath is active in
the news media subset of the burgeoning industry and is developing educational
and training programs for the industry, which all combine for a highly
synergistic business model.

While there are many different
opportunities within the cannabis industry, ranging from pot vending machines
sold by companies like American Green Inc. (OTC: ERBB) to hydroponic equipment sold by Terra Tech Corp. (OTC:
TRTC), investors may want to take a closer look at DigiPath given its near-term
revenue potential and long-term potential across numerous different areas of
the burgeoning cannabis industry.

For more information, visit the
company’s website at www.digipath.com or
visit CannabisFN’s profile at http://www.cannabisfn.com/mdc/digipath-inc/. 

Legal Disclaimer:

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: http://www.cannabisfn.com/legal-disclaimer/.

SOURCE: Cannabis Financial Network

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