Growing Like a Weed: DigiPath is Building a Cannabis Conglomerate

WHITEFISH, MT / ACCESSWIRE / March 26, 2015 / The cannabis industry is rapidly growing and there are no signs that it’s slowing down anytime soon. According to ArcView Research, the market for legal cannabis is the fastest-growing industry in the United States, growing to $2.7 billion in 2014.

Many publicly traded companies have sought to
capitalize on this growth by growing medical cannabis, pursuing clinical trials
with cannabinoids, developing vaporizers and other accessories, or providing
generic consulting services to the space. While many of these companies are
involved in the industry, no clear market leaders have yet to emerge as
conglomerates.

For instance, GW Pharmaceuticals plc (NASDAQ:GWPH) is a leader in conducting clinical trials targeting a number of underlying medical conditions. The stock has done very well, but it doesn’t provide diversification across multiple areas of the industry.

Recently, CannabisFN’s Mike Elliott sat down with DigiPath
Inc.’s (OTCQB:DIGP) CEO Todd Denkin to discuss the company’s recent
accomplishments in growing its diversified presence in the cannabis industry.

CannabisFN Executive Interview | DigiPath OTC: DIGP / Mr. Todd Denkin, CEO from TDM Financial on Vimeo.

Built Upon a Solid Foundation

DigiPath is a diversified provider of reliable testing, educational programs, and unbiased news coverage focused on the burgeoning cannabis industry through its four business units – DigiPath Labs, TNMNews Corp, DigiPath Corp, and DigiPath University. By leveraging synergies between these various divisions, the company aims to build the industry’s premier conglomerate.

Recently, the company completed a restructuring of
its Series A Convertible Preferred Stock that removed the variable conversion price
feature. The conversion price is now fixed at $0.02 for the shares, instead of
the lower of $0.02 per share and 70% of the volume weighted 20-day moving
average. The fixed conversion price significantly reduces potential dilution
associated with the original terms of the Series A shares and eliminates uncertainty
regarding the number of shares of common stock the company has outstanding on a
fully-diluted basis.

The company’s balance sheet had no long-term debt and a strong cash position of over $3.6 million, as of December 31, 2014. With this solid foundation in place, we believe the company is well positioned to expand with its various initiatives targeting different areas of the cannabis industry, while continuing to grow its legacy digital microscopy business that continues to generate revenue.

Nevada Lab
Opening Soon

DigiPath Labs aims to set the industry standard for testing all forms of cannabis-based products using FDA-compliant laboratory equipment and processes to measure safety and efficacy. Since securing a permit from the State of Nevada to open a cannabis-testing laboratory in June of 2014, the company has completed the construction of a $1.4 million facility that’s slated to open in just a few weeks.

“Patient safety starts with adhering to standardized, rigorous analytical techniques,” said DigiPath Inc. Chief Science Officer Dr. Cindy Orser, who heads up the DigiPath Labs subsidiary, in a recent press release. “We believe we have developed best-in-class procedures to test dried plant material and byproducts from the cannabis plant for potency and contaminants.”

The market for cannabis testing services has been consistently growing alongside the medical and recreational marijuana industries. With a growing number of products targeting the space, there’s an increasing need for laboratories designed to screen for potentially harmful contaminants like solvents, pesticides, mold, heavy metals, or microbial contaminants.

TNMNews Goes
Terrestrial

DigiPath’s TNMNews Corp. has featured a number of so-called marijuana luminaries since its inception, including those shaping the industry and making the key decisions. Through these high-powered interviews, the program’s audience has expanded to well over 100,000 listeners each month through its website and other venues, like Live365 and even terrestrial radio stations.

In order to expand this audience, management has been diligently working to build its presence in terrestrial radio, which has been historically dominated by companies like Cumulus Media Inc. (NASDAQ:CMLS). The company is already on the terrestrial airwaves in Delaware, Wisconsin, and Alaska, while plans are in the works to onboard many other partners to develop into additional states. As well, management recently launched a new website to further drive online listenership.

Over the coming weeks, the company plans to feature
2012 Libertarian Presidential Candidate Gary Johnson, who has long been an
advocate for the lifting of federal restrictions on marijuana. The former governor of New Mexico recently compared the Marijuana industry to “a dam about to about to burst,” and warned lawmakers opposing legalization to “start packing their bags.” Interested
listeners can tune in by visiting www.thenationalmarijuananews.com or by visiting Live365.

Looking Ahead

DigiPath trades with a market capitalization of just $1.6 million, according to OTC Markets, which represents just a fractionof its potential if it’s successful in building out all of these businesses. With the early signs of success, cannabis investors may want to take a closer look at the stock.

Management has also been working to provide a
number of additional catalysts to grow the business ahead. For instance, the
company recently announced the signing of an agreement with Blue Line
Protection Group (OTCQB:BLPG) to synergistically cross-market their services and
ultimately drive revenue through “preferred partner” statuses between similar
customer bases.

For more information, please visit the company’s website at http://www.digipath.com/.

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 products 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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