Full Suite of Analytical Lab Equipment to be Purchased for New Lab
LAS VEGAS, NV, June 01, 2021 (GLOBE NEWSWIRE) — via NewMediaWire – Digipath, Inc. (OTCQB: DIGP) (the “Company”), a service-oriented independent analytical testing laboratory company focused on the cannabis and hemp markets, announced today that it has entered into a purchase agreement to acquire a full suite of cannabis and hemp laboratory testing equipment, with plans to have a lab operational in the Coachella Valley of California as soon as the end of this calendar year.
Todd Denkin, Digipath Founder, said, “We are delighted to be launching our strategy to become a multi-state operator (MSO) of cannabis testing labs. We have recently entered into an agreement to purchase critical testing equipment for the lab we are preparing to open in California. Nevada started with very strict mandatory testing regulations, and now California has built on that, which serves as the model for most other states. We expect to leverage our experience in Nevada to help us launch our California operations.”
According to a report by leading industry researchers, Arcview Market Research and BDS Analytics, California is the largest legal cannabis market in the world; and the state’s residents are the 3rd largest consumers of cannabis in the world. California requires all cannabis products to receive a Certificate of Analysis from a state-licensed testing lab prior to distribution, making California’s testing market the fastest-growing segment within the cannabis industry.
California’s Bureau of Cannabis Control (BCC) estimates that over 100 Certified Analytical Testing Labs are needed to meet current demand in the state. As of last year, only 35 such certified labs were operating in California (down from a peak of 62 in 2019). The result is a severe shortfall of laboratory capacity in California, the nation’s largest cannabis market.