CANNAINVESTOR Magazine December / January 2016 - Page 16

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Due to this uncertainty, knowledgeable consumers have been driven to pay premiums for authenticated flower through which desired product experiences can be consistently attained.

Most cannabis testing labs are complying with the minimum state-mandated quality assurance testing protocols combined with basic chemoprofiling of cannabis and cannabis-based products. However, Digipath Labs has gone far beyond the minimum mandate and has embarked on a robust multivariate analysis of over 5,000 chemoprofiles from flower samples evaluated in its Las Vegas laboratory.

This analysis is expected to result in the consolidation of unique flower chemoprofiles that will be instrumental in defining clinically relevant chemotypes masquerading under a plethora of strain names. Once the chemotypes are defined, Digipath Labs plans to select representative strains for each distinct chemotype and submit them for genotyping analysis. The genotyping data will confirm the chemotypes, and this combined dataset will establish standardized, genetically defined conventions for the classification of cannabis strains, translating to truth in advertising throughout the industry.

Such a dataset will have value to any medical patient or recreational consumer interested in a consistent cannabis experience. Instead of merely directing patients and consumers to various dispensaries based on the availability of strains by pseudonym, existing providers such as Leafly and WeedMaps would be able to utilize the Digipath dataset to provide patients and consumers direction based on specific, certified cultivars (as well as the various brand names used by cultivars). This effort will parallel the establishment of cannabis phylogenetic trees, pinpointing what clinically relevant strains are being cultivated, as well as illuminating the numerous pseudonyms under which these true cultivars have been marketed, all beginning in Nevada and expanding to other markets worldwide.

Cannabis Lab Testing Presents Timely and Growing Opportunity

With legalization, the lab testing sector is expected to experience substantial growth. GreenWave Advisors, an independent research and financial analyst firm, projects revenue of $553 million for lab testing alone if the U.S. legalizes cannabis on a federal level. When adding in related services, such as data analytics and consulting, the revenue potential could surpass $866 million. The data troves collected through the testing process could become an increasingly valuable asset and generate substantial revenue for the most accomplished laboratories. This data could also be used to determine specific genetic attributes of targeted cannabinoids and assist with maximizing medicinal benefits.

Recreational Marijuana

Medical Marijuana