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What Does It Take To Get Cannabis That’s Legally Sellable?

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Cannabis has now become legalized in a number of states for both medicinal and recreational use. With its legalization came a huge wave of new business openings, often called the “Green Rush” or the “Green Boom” due to the massive revenues they’re associated with.

Everything from cannabis hair products to precooked edibles have been flooding the market, but it’s a well-known fact that starting up a cannabis-based business isn’t very easy. In fact, the budding industry is known for having a huge amount of business challenges—much of which is due to the fact that cannabis is still illegal on a federal level.


Several major hurdles need to be passed before a business that sells cannabis products can participate in the marketplace. Paperwork is a must-have for any potential business owner, as well as special money storage methods that comply with national regulations.

A little-known fact about cannabis-based companies is that they typically cannot get banks to hold their money due to national regulations. They also are not allowed to advertise through many mainstream methods, so entrepreneurs will also have to meet with a lawyer to determine how they can market their wares.

Shockingly, that’s the easy part. The hard part is actually getting the cannabis tested and cleared for human use.

In Nevada, laws require all cannabis companies to have their goods tested before they can be sold in a dispensary. These tests can cost hundreds or even thousands of dollars, and regularly have to be updated in order to continue sales.

The potent reputation of medical-grade cannabis is one that is well-earned and scientifically backed. DigiPath is one of Nevada’s top cannabis testing centers, an “industry gatekeeper,” in its own unique way. The company has tested thousands of different samples for cannabis cultivators who want to start distributing their herbs. Digipath is a publicly traded company under the symbol (OTCQB) DIGP.

“These tests are meant to help determine how much THC and CBD are in each sample,” says DigiPath CEO Todd Denkin. “Along with figuring out the quantities of the major components of cannabis, we also have to find out how many impurities are in the sample. This helps prevent bad cannabis from reaching the market.”

It sounds like a lot of work doesn’t it? Denkin actually agrees, and as someone who has a firsthand view of the emerging cannabis world. Thankfully, there’s reason to believe much of the proverbial red tape will end up being part of a history.

That being said, it’s not looking like mandatory cannabis testing will go away any time soon. Denkin explained that the differing quantities of THC and CBD make a huge difference in how medical patients react to cannabis.

By labeling cannabis’ THC, CBD, and terpene percentages, medical marijuana patients can get the best possible strain for their issues. Those who use cannabis recreationally get to choose the effects they get to enjoy as well.

New legislation is being drafted to make cannabis legal on both state and national levels. Should it get passed as a legal repeal, the Green Boom will reach national levels—and much of the legal hurdles entrepreneurs face will go the way of the dodo. Leaving huge opportunities for companies like Digipath to lead the way in the multi-billion per year Cannabis industy.

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