LAS VEGAS, Dec. 17, 2015 /PRNewswire/ -- DigiPath, Inc. (OTCQB: DIGP) was recently named in a Bank of America Merrill Lynch investment report on the opportunities emerging in the medical cannabis industry, entitled "Medical Cannabis Has High POTential: A Joint Biotech & Tools Primer." The report is bullish on investments in the cannabis industry. It particularly singles out cannabis testing as an area likely to experience enormous growth.
"This analysis confirms what our own research has found, and what we've built our business model around: the legal cannabis sector is growing rapidly, and the demand for cannabis testing facilities will only increase as more states implement strict safety standards," notes Todd Denkin, president of DigiPath, Inc., and CEO of its cannabis testing unit, DigiPath Labs.
According to the report, medical cannabis is already a $2.9 billion business and stands to at least double. The cannabis testing sector is estimated to reach $800–900 million by 2020. The report predicts increased demand for cannabis testing labs and the equipment they use to analyze cannabis.
While the current US market "consists primarily of small providers of testing and consulting services," the authors note that it is becoming increasingly regulated and standardized. "While progress has been slow and much work remains to be done on the set up and implementation of a standard regulatory framework for the testing of cannabis products, there have been some recent steps in the right direction."
After a thorough examination of the investment opportunities in cannabis testing, the analysts come to one clear conclusion: "Bullish on the cannabis testing market and growth prospects for tools therein."
DigiPath Labs, a leading cannabis testing facility in Nevada, foresaw this growth in demand for cannabis testing and tightening of regulations on testing methods and equipment.
"When we designed the DigiPath Labs flagship location outside Las Vegas, we set out to create the testing lab of the future. We combined the finest instrumentation on the market with exacting testing procedures to ensure that we will always be ahead of regulators," says Mr. Denkin. "This report is yet another validation of our strategy."
To learn more about DigiPath Labs, visit www.digipathlabs.com.
About DigiPath, Inc.
DigiPath, Inc., supports the cannabis industry's best practices for reliable testing, education, and training, and brings unbiased cannabis news coverage to the nation. DigiPath's two business units are DigiPath Labs and TNM News Corp.
For more information, go to www.digipath.com.
Information about Forward-Looking Statements
This press release contains "forward-looking statements" that include information relating to future events, and future financial and operating performance. 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 demand for the Company's products, governmental regulation of the cannabis industry, the introduction of new products, 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 information 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.
SOURCE DigiPath, Inc.