WHITEFISH, MT / ACCESSWIRE / April 27, 2015 / Nevada legalized medical marijuana
15 years ago, but dispensaries are just now becoming a reality in the state.
Given its large tourism industry and reciprocity laws, some analysts have
projected that the state's cannabis industry could exceed $100 million in size
over the coming years. The only thing holding the industry back are three bills
that are currently pending in the state legislature which will finalize what
the cannabis labs will be required to test for.
From an investor perspective, there
are many different ways to capitalize on the state's burgeoning new
market. Blue Line Protection Group (OTC:
BLPG) recently announced that they are fully licensed to provide their full
suite of services in Nevada, while Taylor Consulting Inc. (OTC: TAYO) has begun
scouting Nevada real estate locations to expand their business model.
The nearest term opportunities,
however, may be in the cannabis testing space, where DigiPath Inc. (OTC: DIGP)
plans to be one of the state's first laboratories to open. Per the law, a private, state-licensed
laboratory must test each batch of cannabis before it can be sold to the public
or to third party producers of refined cannabis products such as edibles or
concentrated hash oils.
With testing protocols finally
close to being established, and the opening of their lab seemingly imminent;
DigiPath has begun to receive significant press attention. In a recent News
3 LV piece discussing the state's newly minted cannabis industry Darlene
Purdy, who operates a dispensary in Nevada, said "You can't have a product in
here until you can actually open… So, we're just waiting for a lab to be open
in Las Vegas to test our product … Right now, we're getting 20 to 30 calls a
day. We're probably going to be pretty busy, especially in the beginning."
According to a recent news
segment, DigiPath's lab is ready to go after having purchased over a
million dollars' worth of equipment, pending final resolution of the State's
regulations. This first-mover advantage
could be significant as the testing of their product is the last step
dispensaries are waiting for before being able to sell potentially tens of
millions of dollars worth of cannabis a year.
The new law specifically states
that 12 grams of each 5-pound batch of harvested marijuana must be tested The
tests themselves will check for contamination, potency, and a variety of other
state-mandated factors required before the drug can be sold.
Marijuana Business Daily estimates that
Nevada's cannabis market would be worth anywhere from the tens of millions to
more than $100 million. Some analysts mention that they would not be surprised
if out-of-state sales of medical marijuana account for 30% to 40% of overall
dispensary sales, especially given the state's relaxed reciprocity laws that
could make it a destination for "marijuana tourism."
A second independent source,
NerdWallet, puts the state in the third highest category for potential
marijuana sales, with an estimate of between $50 and $100 million. With this
analysis primary focused on domestic users, the potential to target tourists in
Las Vegas could amplify those estimates by a factor of 1.5x to 2x or more,
especially as the drug becomes more ubiquitous throughout society.
Investors interested in the cannabis
testing industry, including companies like Pazoo Inc. (OTC: PZOO), CannLabs
Inc. (OTC: CANL), or Abattis Bioceuticals Corp. (OTC: ATTBF), may want to take
a closer look at DigiPath given its unique first-mover opportunity in Nevada's
burgeoning cannabis industry. With no debt, and $3.6 million in cash (as of
their latest 10-Q filing), the stock is worth taking a closer look at.
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
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: CannabisFN