Business
Digipath, Inc. Enters into Joint Venture Agreement with Strategic Investor
Digipath, Inc. Enters into Joint Venture Agreement with Strategic Investor.
About this update from Hypha Labs, Inc.
[{"type":"text","content":"\n\n\n\nDigipath, Inc. Enters into Joint Venture Agreement with Strategic Investor\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nDigipath, Inc. Enters into Joint Venture Agreement with Strategic Investor\nPR Newswire\nLAS VEGAS, Feb. 22, 2017\n\n\n\nLAS VEGAS, Feb. 22, 2017 /PRNewswire/ -- Digipath, Inc. (OTCQB: DIGP), an independent cannabis lab testing and media firm, is pleased to announce that it has entered into an agreement with a strategic investor, OC Testing LLC, to build additional cannabis testing labs.  Pursuant to this agreement:\n\n\nDigipath and the investor intend to open cannabis testing labs in jurisdictions outside of Nevada, with Digipath to provide turnkey services and its industry expertise and the OC Testing to provide all funding required to open such labs. Services to be provided by Digipath will include oversight of the purchase and installation of all laboratory equipment, responsibility for obtaining state and local regulatory approvals, and the identification and hiring of laboratory personnel. \nOC Testing will be responsible for financing the building of each additional lab, including the provision of sufficient startup working capital. \nDigipath will be entitled to 20% of the cash flow generated by each such lab. In addition, Digipath will be reimbursed for its expenses during the construction phase of each testing Lab, and once a lab begins operations, Digipath will be entitled to a monthly fee of 3.5% of gross revenues until OC Testing has received distributions equal to its invested capital. Thereafter, Digipath will be entitled to a monthly fee equal to 7% of gross revenues for so long as it remains an owner of each such lab. \nAll new labs will be branded under the \"Digipath Labs\" name, and will meet all the standards of quality and professionalism set by the Digipath Labs flagship operation in Nevada, which operates under the most demanding regulations in the nation. \nThe parties intend to first launch a medical marijuana testing lab in the State of California, followed by additional labs in Florida and other States. ...