Trade Winds Ventures Inc

Published : April 08th, 2015

Testing the Limits: DigiPath Labs Targets Booming Nevada MMJ Market

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Testing the Limits: DigiPath Labs Targets Booming Nevada MMJ Market

WHITEFISH, MT / ACCESSWIRE / April 8, 2015 / Nevada legalized medical marijuana back in 2000, but dispensaries weren't permitted until Senate Bill 374 passed 13 years later. With the state's large tourism industry, and the most liberal medical marijuana reciprocity laws in the country, the Nevada market could see rapid expansion over the coming years and grow into what some analysts expect could be a $100 million a year market.

In this article, we will be focusing on DigiPath Inc. (DIGP), who received provisional approval from the State of Nevada in late-2014 for its DigiPath Labs subsidiary to open a cannabis testing facility. As a requirement for selling marijuana, testing services could grow just as quickly as the overall marijuana market, as growers, sellers, and patients demand high-quality products. The DigiPath Lab, which is set to open in a matter of weeks, will become one of the first licensed testing facilities for marijuana in the state of Nevada.

Below, we will take a further look as to why investors may want to look beyond some of the larger plays within the marijuana industry, such as pharmaceutical bellwether GW Pharmaceuticals plc (NASDAQ:GWPH) or Tweed Marijuana Inc. (TWMJF) (TWD.V), and consider adding smaller companies focused on niche markets like Nevada's rapidly growing market.

Reciprocity Spurs Growth

Nevada may be just one of many states that have legalized medical marijuana, but a provision called "reciprocity" sets it apart from the rest. The provision permits any legally registered medical marijuana patient from anywhere in the world to purchase marijuana in any of the state's dispensaries. While some states have similar provisions, Nevada is the first to implement reciprocity without restriction.

The state already receives some 40 million visitors per year, notably the casino and entertainment hub of Las Vegas. With reciprocity in place, any of these visitors holding valid medical marijuana cards will be eligible to purchase medicine from dispensaries operating in Las Vegas and other approved counties. These dynamics could create an enormous market for medical marijuana alone.

Marijuana Business Daily estimates that the market could be worth anywhere from the tens of millions to above $100 million, depending on how the market shakes out. Some analysts mention that they would not be surprised if out-of-state sales of medical marijuana account for 30% to 40% of overall sales for dispensaries. The move could also make the state a model for others looking to implement less restrictive policies.

Recreational Potential

Nevada voters will have the opportunity to decide whether or not to legalize recreational marijuana during the November 2016 elections. If approved, the Nevada Marijuana Legalization Initiative would legalize one ounce or less of marijuana for recreational use for those over 21 years of age. A 15% excise tax would be placed on the drug and be diverted to schools and other programs.

According to NerdWallet, Nevada falls into the third highest category of potential marijuana sales if the drug is approved recreationally, with an estimate of between $50 million and $100 million. These estimates were created using data from substance abuse cases to extrapolate a percentage of smokers and then looked at percentages of the overall U.S. cannabis market size estimate.

The true value of Nevada's market could be even higher, since the state is already known for its tourism. While NerdWallet's analysis primarily focuses on domestic users, the potential to target tourists visiting entertainment destinations in Las Vegas could significantly amplify those estimates by a factor of 1.5x to 2x or more, especially as the drug becomes more commonplace in society.

Tremendous Need for Labs

The potential for Nevada to become a tourism hub for marijuana has created significant demand for laboratory testing services. In the case of recreational marijuana, there is a high likelihood that testing will be a built-in requirement, while medical marijuana patients have become increasingly concerned that the medicine they're purchasing may not have the ingredients they need.

Nevada's Initiative to Regulate and Tax Marijuana explicitly states that, "cultivating, manufacturing, testing, transporting, and selling marijuana will be strictly controlled through state licensing and regulation" and "marijuana sold in the state will be tested and labeled." These types of regulations promise to create a regulatory-driven market for cannabis testing services.

Consumers are also increasingly demanding testing services as a way to protect against potentially harmful contaminants. In Colorado, testing of over 600 strains of marijuana from dozens of producers found that THC levels are triple that of common buds from the 1980s and CBDs are virtually absent. The same tests showed many strains containing a high presence of pesticides, heavy metals, and other contaminants.

Looking Ahead

Management believes that it's just weeks away from opening its Nevada cannabis testing laboratory, which could begin generating revenue and catalyze the stock over the upcoming quarters, making it an interesting opportunity for investors.

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

Legal 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. Important factors that could cause these differences include, but are not limited to, the demand for the company's products and the company's ability to execute its business plan. 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 may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, has been compensated for its services in the form of cash and equity securities by DigiPath. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.

SOURCE: Cannabis Financial Network

Read the rest of the article at finance.yahoo.com

Trade Winds Ventures Inc

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Trade Winds is a gold and copper exploration company based in Canada.

Trade Winds holds various exploration projects in Canada and in China.

Its main exploration properties are DETOUR LAKE, BIRCH LAKE, GOWEST, TURNER LAKE PROPERTY, TREASURE MOUNTAIN, BLOCK A and DARDANELLES in Canada and SILU and TUOLE in China.

Trade Winds is listed in Canada and in United States of America. Its market capitalisation is CA$ 168.8 millions as of today (US$ 127.4 millions, € 113.7 millions).

Its stock quote reached its lowest recent point on October 24, 2008 at CA$ 0.01, and its highest recent level on April 04, 2014 at CA$ 4.75.

Trade Winds has 93 240 000 shares outstanding.

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Annual reports of Trade Winds Ventures Inc
2007 Annual Report
Project news of Trade Winds Ventures Inc
8/22/2011(Block A)Intersects 3.08 g/t gold over 20.8 metres on Block A
7/14/2011(Block A)Intersects 4.18 g/t gold over 18.4 metres on Block A
5/5/2011(Block A)Trade Winds Ventures Completes Preliminary Metallurgical St...
3/31/2011(Block A)Announces Initial Results of 2011 Drilling on Block A
2/16/2011(Block A)Files Updated NI 43-101 Technical Report for Block A on SED...
2/3/2011(Block A)Reports Assays from Previously Unsampled Core from its Drill...
7/7/2010(Block A)Announces Preliminary Metallurgical Study
1/19/2010(Block A)Begins 2010 Drill Program on Block ARecieved:
12/15/2009(Block A) Plans 2010 Drilling On Block A Recieved:
5/28/2009(Block A)Completes Updated Mineral Resource EstimateRecieved:
5/27/2009(Detour Lake)Executes Joint Venture With Detour GoldRecieved:
9/19/2008Files NI 43-101 Report for Silu Lead-Zinc Property in China
7/22/2008(Detour Lake)Proceeds with NI 43-101
10/2/2007Intersects High Grade Gold, 120.83 grams/tonne over 1.50 met...
Corporate news of Trade Winds Ventures Inc
9/22/2015BEDROCAN CANADA AND TWEED ANNOUNCE MULTI-CENTRE LONGITUDINAL...
9/17/2015Bedrocan Canada and Tweed announce multi-centre longitudinal...
9/15/2015Tweed Looks to Control Nearly Half of Canadian Cannabis Mark...
9/4/2015Tweed Launches Community Engagement Centres and Acquires Int...
8/31/2015Tweed Marijuana Inc. Completes Acquisition of bedrocan Canna...
8/28/2015Tweed Quarterly Conference Call Details
8/27/2015Bedrocan Receives Additional License Capacity from Health Ca...
8/24/2015Bedrocan Announces Shareholder Approval of Plan of Arrangeme...
8/24/2015Bedrocan Domestic Production Facility Is Fully-Licensed by H...
8/20/2015Tweed Commences Cannabis Extraction, Provides Corporate Upda...
7/28/2015Bedrocan Receives Health Canada Approval to Sell Domesticall...
7/8/2015Tweed Updates Oil Extraction Efforts and Latest Product Offe...
7/8/2015Abba Medix Builds a Diversified Business
4/8/2015Testing the Limits: DigiPath Labs Targets Booming Nevada MMJ...
4/2/2015Tweed Marijuana grants stock options
4/1/2015April 1 Alert: Tweed R&D Discovers Exciting Genetic Mutation
3/25/2015Tweed Marijuana Inc. Announces Partial Exercise of Over-Allo...
3/17/2015Tweed Marijuana Inc. Closes $20 Million Bought Deal Financin...
2/26/2015Tweed Marijuana Inc. Releases Full Q4 Financials and Provide...
2/23/2015Canadian regulators warn on medical marijuana disclosures
2/20/2015Tweed Installs Aeroponics Pilot Project with Indoor Harvest
2/18/2015Tweed Marijuana releases key fourth quarter summary and prov...
2/10/2015Tweed and Canabo Medical Corporation Launch Collaborative Re...
1/26/2015Cannabix Provides Alternative to Costly Drug Detection Tacti...
1/5/2015Tweed Marijuana Inc. announces second license renewal and ma...
12/12/2014Canadian medical marijuana company PharmaCan to go public ne...
12/11/2014Tweed Provides Support to The Canadian AIDS Society
11/26/2014Tweed Marijuana Inc. Q3 Results and Operational Highlights
11/20/2014Enertopia Provides Footage of Planned MMPR Facility
11/19/2014Tweed announces license renewal
8/16/2011(Block A)Begins 20,000 Metre Drill Program on Block A
7/29/2011Analysis on Trade Winds Ventures TWD: TSX.V - TWDIF: OTC fro...
5/2/2011(Block A)Completes Preliminary Metallurgical Study on Block A
2/21/2011(Block A)Named to 2011 TSX Venture Top 50 Companies - Ranked 9th in M...
11/21/2008' Thanks You for Attending Online Presentation
8/12/2008Company Update
7/16/2008To Begin Exploration on BC Projects
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