Full Suite of Analytical Lab Equipment to be Purchased for New Lab
LAS VEGAS, NV, June 01, 2021 (GLOBE NEWSWIRE) — via NewMediaWire – Digipath, Inc. (OTCQB: DIGP) (the “Company”), a service-oriented independent analytical testing laboratory company focused on the cannabis and hemp markets, announced today that it has entered into a purchase agreement to acquire a full suite of cannabis and hemp laboratory testing equipment, with plans to have a lab operational in the Coachella Valley of California as soon as the end of this calendar year.
Todd Denkin, Digipath Founder, said, “We are delighted to be launching our strategy to become a multi-state operator (MSO) of cannabis testing labs. We have recently entered into an agreement to purchase critical testing equipment for the lab we are preparing to open in California. Nevada started with very strict mandatory testing regulations, and now California has built on that, which serves as the model for most other states. We expect to leverage our experience in Nevada to help us launch our California operations.”
According to a report by leading industry researchers, Arcview Market Research and BDS Analytics, California is the largest legal cannabis market in the world; and the state’s residents are the 3rd largest consumers of cannabis in the world. California requires all cannabis products to receive a Certificate of Analysis from a state-licensed testing lab prior to distribution, making California’s testing market the fastest-growing segment within the cannabis industry.
California’s Bureau of Cannabis Control (BCC) estimates that over 100 Certified Analytical Testing Labs are needed to meet current demand in the state. As of last year, only 35 such certified labs were operating in California (down from a peak of 62 in 2019). The result is a severe shortfall of laboratory capacity in California, the nation’s largest cannabis market.
“We have positioned Digipath as a premium laboratory brand built upon established best practices in science, service and customer care. This approach differentiates Digipath from the vast majority of existing testing labs in the cannabis market,” said Bruce Raben, Digipath Chairman. “With our first profitable quarter just completed and the Covid -19 pandemic mostly behind us, we believe we are well positioned to begin to execute our MSO strategy, taking advantage of economies of scale within a soaring cannabis market.”
About Digipath, Inc. (OTCQB: DIGP)
Digipath, Inc., supports the cannabis industry’s best practices for reliable testing, data acquisition, formulations, and new canna-tech to the cannabis industry.
Digipath Labs provides pharmaceutical-grade analysis and testing to the cannabis industry to ensure producers, consumers and patients know exactly what is in the cannabis they ingest and to help maximize the quality of its client’s products through analysis, research, development, and standardization.
Information about Forward-Looking Statements
This press release contains “forward-looking statements” that include information relating to future events. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in, or suggested by, the forward-looking statements. Important factors that could cause these differences include, but are not limited to: the Company’s need for additional funding, the demand for the Company’s products, governmental regulation of the cannabis industry, the Company’s ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company’s liquidity and financial strength to support its growth, and other risks that may be detailed from time-to-time in the Company’s filings with the United States Securities and Exchange Commission. For a more detailed description of the risk factors and uncertainties affecting Digipath, please refer to the Company’s recent Securities and Exchange Commission filings, which are available at www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.