DigiPath, Inc. (OTCQB:DIGP) announced that its cannabis testing subsidiary DigiPath Labs, has signed a one-year exclusive contract to test dried plant material for a local grower.
As quoted in the press release:
“We’re now seeing the payoff for all our hard work of setting up a state-of-the art testing lab and validating testing equipment and procedures,” explains Todd Denkin, CEO of DigiPath Labs. “We are getting an enthusiastic response from those in the cannabis sphere who want quick, reliable test results, and we anticipate accelerated growth as the Nevada cannabis industry expands.”
Since the Nevada legislature established regulations for a statewide cannabis distribution program in 2014, the rollout has been slow, but it’s starting to pick up steam. Three dispensaries are now open, and another 52 have been certified by the Department of Public and Behavioral Health (DPBH), which oversees the program. DPBH has also approved 182 licenses for cultivation and 118 for production, and the law requires testing of all medical cannabis flowers, edibles, and extracts sold in the Silver State. An initiative to legalize marijuana for recreational use will be on the November 2016 ballot and is widely expected to pass, which would make the testing lab business explode.