LAS VEGAS, Sept. 25, 2017 /PRNewswire/ -- Digipath, Inc. (OTCQB: DIGP), an independent cannabis testing laboratory and media firm, is pleased to announce that it has entered into a joint venture with Mr. Don Ashley, an experienced real estate developer and cannabis entrepreneur, to establish and operate a cannabis testing laboratory in California. The joint venture, Humboldt Botanical, LLC, will conduct business under the name "Digipath Botanical Testing" and will launch Digipath's entry into the largest cannabis market in the United States.
Pursuant to the joint venture agreement, Mr. Ashley will contribute up to $2 million to fund the build-out and equipping of the testing laboratory, while Digipath will be responsible for managing and supervising the day-to-day operations of the laboratory. Digipath and Mr. Ashley will be entitled to receive 40% and 60%, respectively, of the joint venture's cash distributions, provided that until Mr. Ashley has received the return of his invested capital, distributions will made 75% to Mr. Ashley and 25% to Digipath. Digipath has also provided the joint venture with a non-exclusive license to use its intellectual property in connection with the operation of the laboratory. Digipath has also been granted a non-exclusive, royalty-free right to use all cannabis data generated by the joint venture, further adding to its growing portfolio of cannabis testing data and related intellectual property.
The joint venture will reimburse Digipath for its expenses incurred in connection with the joint venture and pay Digipath a monthly administrative fee equal to 10% of those expenses.
This new testing laboratory will be part of a larger, three-building cannabis industrial park that is expected to include an R&D facility, oils/concentrate manufacturing center, health and wellness center, distribution and processing facility, tissue culture nursery, hemp clothing outlet, and coffee bistro
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