DigiPath Raises $8.2 Million to Expand into Cannabis Testing and Education, Files 10-Q
LAS VEGAS, July 23, 2014 /PRNewswire/ -- DigiPath, Inc. (OTCBB and OTCQB: DIGP), a digital pathology solution provider that is expanding into the cannabis testing and education markets, announced the filing of its periodic report on Form 10-Q for the quarter ended June 30, 2014, which disclosed the consummation of financings in the aggregate amount of $8.2 million from accredited investors during its third fiscal quarter.
Of the $8.2 million raised, DigiPath allocated $1 million of the gross proceeds to general working capital for DigiPath Corp which creates and markets affordable, innovative, and reliable digital pathology solutions and offers advisory services for healthcare clients. The company invested another $1 million on content and curriculum development for its emerging divisions of cannabis education and training.
DigiPath expects to use the remaining proceeds to explore new lines of business associated with the research, development, licensing and operation of botanical and nutraceutical products and services, including, without limitation, the licensing of brand name nutraceutical products.
"We believe that the increased availability of and demand for medical cannabis—especially as states and the federal government move to ease laws around the cannabis industry—has created unprecedented growth opportunities for DigiPath," said Steve Barbee, CEO of DigiPath. "Our revenues are increasing, we have capital on hand, and we are focused on expanding our infrastructure and building shareholder value."
DigiPath reported that revenues increased 329% from $50,602 in the second fiscal quarter of 2014 to $217,248 in the third fiscal quarter. As a result of expenses associated with our business expansion, net loss also increased from $265,250 to $654,381 during the same period. All revenues were attributable to DigiPath Corp.
Net loss per share loss increased to $0.06 per share as of the third quarter ended June 30, 2014, from $0.05 per share as of the same period ended June 30, 2013. During the same nine-month period, total assets increased from $255,336 (June 2013) to $7,336,509 (June 2014), representing a 2,773% increase. Similarly, total cash during the same nine-month period increased from $35,363 (June 2013) to $5,901,786 (June 2014), representing a 16,589% gain.
About DigiPath, Inc.
DigiPath, Inc., develops and markets affordable and accurate human and animal digital pathology solutions. The company is rapidly expanding its line of services to serve the botanical, nutraceutical, and cannabis industries with industry-leading testing and education and training services.
For more information, go to: www.digipath.com.
Information about Forward-Looking Statements
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SOURCE DigiPath, Inc.