Las Vegas got a whole new sin to add to its list earlier this month, as Nevada began recreational adult-use cannabis sales starting July 1st. Digipath, Inc. (OTCQB: DIGP), an independent testing lab company targeting the rapidly growing marijuana industry, announced this morning that the company has both received its recreational testing license as well as renewed its existing medical marijuana testing license.
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Nevada's medical marijuana program currently serves over 28,000 patients that use cannabis and its derivative products for the treatment of a variety of medical conditions. With the recent launch of the adult-use marijuana market, anyone over the age of 21 with valid identification can purchase cannabis products whether they are from the state or not.
This opens the Nevada marijuana market to a much larger portion of Nevada's 2 million+ residents over the age of 21, as well as a significant segment of the over 40 million tourists and convention goers that visit the state annually.
This rising demand for cannabis will inherently drive up demand for laboratory testing of cannabis products, making Digipath's recent announcement a well-timed development for the company.
The Nevada Dispensary Association estimated that statewide adult-use sales were between $3 to $5 million in the first weekend alone. As sales continue to rise, suppliers of cannabis products will be moving rapidly to meet the increased demand, necessitating a much larger demand for the laboratory testing of these products.
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Similar market shifts occurred with the launch of adult-use cannabis markets in Colorado, Oregon, and Washington State, and Nevada is expected to be one of the largest adult-use markets in the United States by the end of 2018.
Todd Denkin, President of Digipath, stated, "It's really exciting to be a part of history as Nevadans get what they voted for in 2016. The entire medical marijuana community has been working overtime to satisfy this new retail customer base. With the highest capacity and the fastest turnaround time of any lab in Nevada, Digipath Labs is ready for the onslaught of both retail and medical cannabis and cannabis based products."
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