Digipath Takes Over Management & Signs Letter of Intent to Acquire Majority Control of Steep Hill's Licensed Northern California Lab from Evio Labs
07 Dezember 2021 - 2:48PM
InvestorsHub NewsWire
Acquisition Would Extend
Multi-State Operator (MSO) Strategy
LAS VEGAS, NV -- December 7, 2021 -- InvestorsHub NewsWire
-- Digipath, Inc. (OTCQB:
DIGP) (the “Company”), a service-oriented
independent analytical testing laboratory and data company focused
on the cannabis and hemp markets, announced today that it has
signed a letter of intent to acquire a controlling interest in a
Berkeley, CA based cannabis and hemp testing laboratory
from EVIO, Inc. (OTC PINK:EVIO) in
exchange for shares of Digipath’s common stock.
The lab acquisition would immediately make Digipath a
Multi-State Operator (MSO) and would be the Company’s first in what
it hopes will be similar future purchases wherein the Company
acquires existing labs and increases profitability using Digipath’s
proven methodology and business model.
The Berkeley lab is fully licensed in California with
state-of-the art equipment and complete redundancy. Digipath is
already managing the lab under a management agreement pending the
closing of the transaction. Based on current projections, the
Berkeley lab is expected to more than double revenue of the next
calendar year. California is widely regarded as one of the leading
cannabis markets in the world and its residents as the third
largest consumers of cannabis in the world. California has
instituted strict regulations requiring all cannabis products to
receive a Certificate of Analysis from a state-licensed testing lab
prior to distribution. This has been a boon for the cannabis
testing market in California, making it the fastest growing segment
within the cannabis industry.
Over 100 Certified Analytical Testing Labs are needed to meet
California’s current demand according to California’s Bureau of
Cannabis Control (BCC). There is a severe shortage of qualified
testing facilities with only 35 such certified labs operating in
California currently.
“The acquisition of this laboratory would accelerate
implementation of our strategy to become a multi-state operator
(MSO) of cannabis and hemp testing labs,” stated Todd Denkin,
Digipath Founder and President. “California has followed Nevada and
other states by mandating strict testing guidelines for cannabis
and related products. With only 35 cannabis testing labs in
California to service the thousands of licensees, this is a
tremendous expansion opportunity for Digipath and its
shareholders.” Denkin added, “To learn more about this acquisition,
please join me this Wednesday December 8th, at 9:00 am EST
at the
Emerging Growth Conference Webinar by simply clicking here to
register.”
“With cannabis products now legal for recreational use in 11
states and for medical use in 35 states we believe that the vast
market for testing and analysis has hit its tipping point.
There are significant barriers to entry to becoming a
state-licensed and certified testing lab. Digipath intends to fill
this void, having established itself as a premium testing
laboratory brand in Nevada and now has firm plans to do the same in
California,” said Stone Douglass, Chief Financial Officer,
Digipath. “This is a first step in executing our plan to become a
leading national brand in cannabis and hemp testing.”
“We are elated to expand and extend our relationship with
Digipath,” said Arielle Chu, VP of Licensing at Steep Hill. “To
date, this has been a fruitful and mutually beneficial engagement
and we fully expect both companies to profit from the association
as we move forward together.”
About Digipath, Inc. (OTCQB:
DIGP)
Digipath, Inc., supports the cannabis
industry’s best practices for reliable testing, data acquisition,
formulations, and new canna-tech to the cannabis industry.
Digipath Labs provides
pharmaceutical-grade analysis and testing to the cannabis industry
to ensure producers, consumers and patients know exactly what is in
the cannabis they ingest and to help maximize the quality of its
clients’ products through analysis, research, development, and
standardization.
Information about Forward-Looking
Statements
This press release contains “forward-looking statements” that
include information relating to future events. 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 Company's need for additional funding, the demand
for the Company's products, governmental regulation of the cannabis
industry, 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
risks 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.
Contact:
Digipath, Inc.
702-527-2060
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