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
