DIGIPATH Inc/SH SH (OTCMKTS:DIGP) has confirmed that it will be addressing the regulatory violations found by the State of Nevada’s Department of Taxation, Marijuana Enforcement Division. The violations were found by the departments in the course of its review of Digipath Labs’ operations and procedures. This resulted in the closure of business and the suspension of Digipath Labs, a Medical Marijuana Registration Certificate and Marijuana Testing Facility owned by Digipath.
Nevertheless, the company says that it will be submitting a plan of correction and has gone ahead to seek for a reinstatement of its licenses so as to continue running its testing services. On the other hand, the Department has provided a hearing before an administrative law judge, which is coming up on February 15, 2018.
While suspended, the company is referring its clients to competitors
As it is now, Digipath Labs, which is located in Clark County is not in business. The company is working on accelerating the process of reinstatement of its business but in the meantime, it has to send its clients to its competitors.
While this may not be a principled solution, the President and COO of Digipath, Inc., Mr. Todd Denkin says, “We have communicated with our clients, …, and assured them that until the resolution of this matter, Digipath Labs will work with other testing laboratories to ensure that our clients’ testing needs are met.”
Apparently, this is not the first time that Digipath is brushing shoulders with the law. The company has previously been blacklisted for promoting an event, which was in violation of state rules. It is also worth noting that the state has also suspended three labs since the legalization of Marijuana in Nevada last July.
Let’s explore Digipath Inc.
The company has come a long way in supporting the cannabis industry, which has is growing at a rapid rate. The company is known to promote best practices in the coverage of cannabis news and particularly education and training.
Denkin outlines the company’s commitment to the health and safety of the public citing that they have always been the gatekeepers between producers and consumers. This is the more reason they were working tirelessly to resolve the issues brought forth by the regulators.