The cannabis industry is a growing industry and there are no indications that it is going to slow down anytime soon. As per ArcView Research, the legal cannabis market is the fastest-growing industry in the U.S. Many publicly traded firms are capitalizing in growing medical cannabis market and Digipath Inc (OTCMKTS:DIGP) is no exception.
It is a diversified provider company of educational programs, reliable testing and unbiased news coverage revolving around the burgeoning cannabis industry. The operations are carried out through its four business divisions, Digipath Corp, Digipath University, Digipath Labs and TNMNews Corp. It intends to leverage synergies between the four units to create the industry’s premier conglomerate.
Recently, Digipath concluded a restructuring of ‘Series A’ Convertible-Preferred Stock that eliminated the variable conversion price aspect. The conversion price is set at $0.02 for the shares. The fixed conversion price considerably reduces potential dilution linked with the original terms and eradicates uncertainty regarding the number of outstanding shares of common stock on a fully-diluted basis.
There is no long-term debt in the Digipath’s balance sheet. The cash position is strong with $3.6 million reported as of December 31, 2014. The company is well positioned to extend its various measures targeting different regions of the cannabis market, while continuing to expand its digital microscopy business that continues to post strong revenue.
Digipath Labs objective is to establish the industry standard for examining all types of cannabis-based products using FDA-compliant lab equipment and methods to measure efficacy and safety. Since securing a permit from Nevada to commence a cannabis-testing lab in June of 2014, Digipath has finished the construction of a facility that’s set to start in just a few weeks. The company has developed best-in-class methods to examine byproducts from the cannabis crop and dried plant material for contaminants and potency.