Growing Like a Weed: DigiPath is Building a Cannabis Conglomerate


Ryan Allway

March 26th, 2015

News, Top Story


The cannabis industry is rapidly growing and there are no signs that it’s slowing down anytime soon. According to ArcView Research, the market for legal cannabis is the fastest-growing industry in the United States, growing to $2.7 billion in 2014.

Many publicly traded companies have sought to capitalize on this growth by growing medical cannabis, pursuing clinical trials with cannabinoids, developing vaporizers and other accessories, or providing generic consulting services to the space. While many of these companies are involved in the industry, no clear market leaders have yet to emerge as conglomerates.

For instance, GW Pharmaceuticals plc (NASDAQ: GWPH) is a leader in conducting clinical trials targeting a number of underlying medical conditions. The stock has done very well, but it doesn’t provide diversification across multiple areas of the industry.

Recently, CannabisFN’s Mike Elliott sat down with DigiPath Inc.’s (OTC: DIGP) CEO Todd Denkin to discuss the company’s recent accomplishments in growing its diversified presence in the cannabis industry.

Built Upon a Solid Foundation

DigiPath is a diversified provider of reliable testing, educational programs, and unbiased news coverage focused on the burgeoning cannabis industry through its four business units – DigiPath Labs, TNMNews Corp, DigiPath Corp, and DigiPath University. By leveraging synergies between these various divisions, the company aims to build the industry’s premier conglomerate.

Recently, the company completed a restructuring of its Series A Convertible Preferred Stock that removed the variable conversion price feature. The conversion price is now fixed at $0.02 for the shares, instead of the lower of $0.02 per share and 70% of the volume weighted 20-day moving average. The fixed conversion price significantly reduces potential dilution associated with the original terms of the Series A shares and eliminates uncertainty regarding the number of shares of common stock the company has outstanding on a fully-diluted basis..

The company’s balance sheet had no long-term debt and a strong cash position of over $3.6 million, as of December 31, 2014. With this solid foundation in place, we believe the company is well positioned to expand with its various initiatives targeting different areas of the cannabis industry, while continuing to grow its legacy digital microscopy business that continues to generate revenue.

Nevada Lab Opening Soon

DigiPath Labs aims to set the industry standard for testing all forms of cannabis-based products using FDA-compliant laboratory equipment and processes to measure safety and efficacy. Since securing a permit from the State of Nevada to open a cannabis-testing laboratory in June of 2014, the company has completed the construction of a $1.4 million facility that’s slated to open in just a few weeks.

“Patient safety starts with adhering to standardized, rigorous analytical techniques,” said DigiPath Inc. Chief Science Officer Dr. Cindy Orser, who heads up the DigiPath Labs subsidiary, in a recent press release. “We believe we have developed best-in-class procedures to test dried plant material and byproducts from the cannabis plant for potency and contaminants.”

The market for cannabis testing services has been consistently growing alongside the medical and recreational marijuana industries. With a growing number of products targeting the space, there’s an increasing need for laboratories designed to screen for potentially harmful contaminants like solvents, pesticides, mold, heavy metals, or microbial contaminants.

TNMNews Goes Terrestrial

DigiPath’s TNMNews Corp. has featured a number of so-called marijuana luminaries since its inception, including those shaping the industry and making the key decisions. Through these high-powered interviews, the program’s audience has expanded to well over 100,000 listeners each month through its website and other venues, like Live365 and even terrestrial radio stations.

In order to expand this audience, management has been diligently working to build its presence in terrestrial radio, which has been historically dominated by companies like Cumulus Media Inc. (NASDAQ: CMLS). The company is already on the terrestrial airwaves in Delaware, Wisconsin, and Alaska, while plans are in the works to onboard many other partners to develop into additional states. As well, management recently launched a new website to further drive online listenership.

Over the coming weeks, the company plans to feature 2012 Libertarian Presidential Candidate Gary Johnson, who has long been an advocate for the lifting of federal restrictions on marijuana. The former governor of New Mexico recently compared the Marijuana industry to “a dam about to about to burst”, and warned lawmakers opposing legalization to “start packing their bags”. Interested listeners can tune in by visiting www.thenationalmarijuananews.com or by visiting Live365.

Looking Ahead

DigiPath trades with a market capitalization of just $1.6 million, according to OTC Markets, which represents just a fraction of its potential if it’s successful in building out all of these businesses. With the early signs of success, cannabis investors may want to take a closer look at the stock.

Management has also been working to provide a number of additional catalysts to grow the business ahead. For instance, the company recently announced the signing of an agreement with Blue Line Protection Group (OTC: BLPG) to synergistically cross-market their services and ultimately drive revenue through “preferred partner” statuses between similar customer bases.

For more information, please visit the company’s website at www.digipath.com.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Disclaimer: Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.



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CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

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