Digipath Inc (OTCMKTS:DIGP) entered the marijuana industry a couple of years ago and it’s fair to state that it had a tough time in the first few months after entering into this business. Although company’s transformation into a marijuana stock coincided with the pot excitement, the stock wasn’t particularly hyped in the beginning.
In July 2014, Digipath stock, suddenly started moving up on the chart. The gains came so rapid that the management team decided to release a press release mentioning that there are no material reasons for the sharp price appreciation and cautioning investors to do their own due diligence before investment. Slowly but surely, all the hype surrounding Digipath subsided.
Investors who decided to show faith in its stock were bitterly disappointed when in 2015, the company issued a 1-for-10 reverse split. Thereafter, volumes took a hit and most people stopped paying heed to DIGP stock.
Digipath managed to start its first cannabis testing laboratory some ten months ago which eventually helped the company to deliver strong performance at the end of last year. The company reported cash of $64,000, current assets of $145,000 and current liabilities amounted to $48,000. Digipath posted quarterly revenue of $102,000 on net loss of $1.7 million.
In October, the company freed its majority stake in its digital pathology business. It indicates that the company’s future is now largely dependent on its cannabis testing facility. However, going by the looks of things, the testing facility has yet to achieve the desired results. Todd Denkin, the CEO of Digipath spoke with CFN Media Group and was also interviewed by GFarma TV. He assured that things are moving as planned. Earlier in March, he also confirmed a one-year testing deal with a leading licensed cannabis grower firm called Silver Sage Wellness LLC.
In last trading session, the stock price of Digipath surged 20% to close the day at $0.270.