License Provides Steep Hill California Lab with Greatly Expanded Service Offering
LAS VEGAS, NV, Feb. 09, 2022 (GLOBE NEWSWIRE) — via NewMediaWire — Digipath, Inc. (OTCQB: DIGP) (“Digipath” or the “Company”), a service-oriented independent analytical testing laboratory, data analytics firm focused on the cannabis and hemp markets, is pleased to announce that it has obtained a compliance testing license from the State of California for the Steep Hill California cannabis and hemp testing laboratory operated by Digipath in Berkeley, CA. The license immediately allows the Steep Hill California lab to conduct compliance testing for all cannabis products, in addition to its existing R & D testing operations.
As previously announced, the Company signed a letter of intent to acquire a controlling interest in the Steep Hill California lab from EVIO, Inc. in exchange for shares of Digipath’s common stock. Pursuant to the letter of intent, Digipath is managing the operations of the lab pending the closing of the transaction. The new license is anticipated to result in increased revenues for Digipath following the consummation of the acquisition.
Compliance testing has historically been the main revenue driver for Digipath at its Nevada laboratory. The States of California and Nevada both require all cannabis products to be tested by an independent, accredited laboratory such as Digipath before they are sold in dispensaries. As with Nevada, California compliance licenses are both coveted and limited. In its Las Vegas laboratory, compliance testing makes up over 90% of the Company’s total revenue. The Steep Hill laboratory has not been able to pursue this larger market and generate any revenue from compliance testing to date as it awaited the issuance of the compliance license.
“It’s a great opportunity for Digipath as we continue our efforts to expand and increase our portfolio of revenue generating laboratories,” stated Todd Denkin, Digipath Founder and President. “California presents a real catalyst to growth for Digipath and its shareholders as the market size is the largest in the U.S. and currently underserved. We have inserted ourselves into this giant marketplace to perform all California required testing protocols using our best practices and methods developed and used in Nevada on over 80,000 cannabis and hemp samples.”
Throughout its seven-year existence, Digipath has been committed to the highest level of cannabis and hemp testing and to the creation of a rich, detailed data compilation of cannabinoid and terpene profiles resulting in the “Digipath Data Vault.” The Company believes that this data asset is of value for product development in a wide variety of applications ranging from medical applications to recreational use of cannabis as researchers look to utilize the ideal chemoprofiles for certain ailments. The Company is open to and actively looking for licensing opportunities and joint venture partners.
Additionally, the California lab should produce large amounts of data that will be added to the current data set of chemoprofiles. Up until now, Digipath has been limited to collecting cannabis and hemp data from Nevada cannabis because of the restrictions on interstate commerce. Full compliance testing in California will add to the cannabinoids data set and for those who want terpenes tested, full chemoprofiles will be collected and analyzed. Comparing the data will be the first step in determining how cannabis cultivars differ from state to state and can lead to even more research support down the road. For more information on Compliance and R & D testing please call the Berkeley lab at (510) 562-7400.
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. The “Digipath Data Vault” is a rich data set of over 70,000 cannabis chemo profiles which can be used for research and product development in a wide variety of applications.
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 clients’ 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 inability to consummate the closing of the Steep Hill acquisition, 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.
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