A Uniq ue I nve stme nt Ve hic le in L a b o ra to ry T e sting - PowerPoint PPT Presentation

A Uniq ue I nve stme nt Ve hic le in L a b o ra to ry T e sting

SAFE HARBOR STATEMENT Ce rta in sta te me nts c o nta ine d in this pre se nta tio n, inc luding , witho ut limita tio n, sta te me nts c o nta ining the wo rd s “b e lie ve s,” “pla ns,” “e xpe c ts,” “a ntic ipa te s,” a nd wo rd s o f simila r impo rt, c o nstitute “fo rwa rd -lo o king sta te me nts” within the me a ning o f the Priva te Se c uritie s L itig a tio n Re fo rm Ac t o f 1995. Suc h fo rwa rd -lo o king sta te me nts invo lve kno wn a nd unkno wn risks, unc e rta intie s a nd o the r fa c to rs tha t ma y c a use the a c tua l re sults, pe rfo rma nc e o r a c hie ve me nts o f Dig ipa th, Inc . (to g e the r with Dig ipa th L a b s, I nc ., T he Na tio na l Ma rijua na Ne ws Co rp ., a nd the ir re spe c tive a ffilia te s, the “Co mpa ny” o r “Dig ipa th”) to b e ma te ria lly d iffe re nt fro m a ny future re sults, pe rfo rma nc e o r a c hie ve me nts e xpre sse d o r implie d b y suc h fo rwa rd -lo o king sta te me nts. Suc h fa c to rs inc lude , a mo ng o the rs, the fo llo wing : the Co mpa ny's ne e d fo r a d d itio nal fund ing , g o ve rnme ntal re g ula tio n o f the c a nna b is ind ustry, the d e ma nd fo r the Co mpa ny's pro d uc ts, the intro d uc tio n o f ne w pro d uc ts, the Co mpa ny's a b ility to ma inta in c usto me r a nd stra te g ic b usine ss re la tio nships, the impa c t o f c o mpe titive pro d uc ts a nd pric ing , g ro wth in ta rg e te d ma rke ts, the a d e q ua c y o f the Co mpa ny's liquidity a nd fina nc ia l stre ng th to suppo rt its g ro wth, the Co mpa ny’ s a b ility to suc c e ssfully inte g ra te a ny a c q uisitio n it ma y ma ke , a nd o the r risks d e ta ile d in the mo st re c e nt q ua rte rly a nd a nnual re po rts a nd o the r filing s. Give n the se unc e rta intie s, und ue re lia nc e sho uld no t b e pla c e d o n suc h fo rwa rd -lo o king sta te me nts. T he Co mpa ny d isc la ims a ny o b lig a tio n to upd a te a ny suc h fa c to rs o r to public ly a nno unc e the re sults o f a ny re visio ns to a ny o f the fo rwa rd -lo o king sta te me nts c o nta ine d he re in to re fle c t future e ve nts o r d e ve lo pme nts e xc e pt a s re q uire d b y la w. T his d o c ume nt is so le ly fo r info rma tio n purpo se s a nd is no t to b e c o nstrue d a s inve stme nt a d vic e o r a s a n o ffe r to se ll o r the so lic ita tio n o f a n o ffe r to b uy a ny se c urity in a ny sta te . T his d o c ume nt a nd its c o nte nts a re c o nfid e ntia l to the pe rso n(s) to who m it is de live re d a nd sho uld no t b e c o pie d o r d istrib ute d , in who le o r in pa rt, o r its c o nte nts d isc lo se d b y suc h pe rso n(s) to a ny o the r pe rso n. Any pa rty re c e iving a nd / o r re vie wing this ma te ria l, in c o nsid e ra tio n the re fo re , a g re e s no t to c irc umve nt the b usine ss pro po sa ls e xplic itly o r implic itly c o nta ine d he re in in a ny ma nne r, d ire c tly o r ind ire c tly. F urthe r, a ny re c ipie nt he re o f a g re e s to ma inta in a ll info rma tio n re c e ive d in the stric te st c o nfid e nc e a nd sha ll no t d isc lo se to a ny third pa rtie s a ny info rma tio n ma te ria l to the o ppo rtunity c o nta ine d he re in a nd , upo n re vie w he re o f, a g re e s tha t a ny una utho rize d d isc lo sure b y a ny pa rty will re sult in irre pa ra ble d a ma g e fo r whic h mo ne ta ry d a ma g e s wo uld b e diffic ult o r impo ssible to a c c ura te ly d e te rmine . Re c ipie nts re c o g nize , a nd he re b y a g re e , tha t the pro prie ta ry info rma tio n d isc lo se d he re in re pre se nts c o nfid e ntial a nd va lua ble pro prie ta ry info rma tio n a nd , the re fo re , will no t, witho ut e xpre ss prio r writte n c o nse nt, d isc lo se suc h info rma tio n to a ny pe rso n, c o mpa ny, e ntity o r o the r third pa rty, unle ss so d o ing wo uld c o ntra ve ne g o ve rning law o r re g ula tio ns. T his d o c ume nt is a n o utline o f ma tte rs fo r d isc ussio n o nly. T his d o c ume nt d o e s no t c o nstitute a nd sho uld no t b e inte rpre te d a s a d vic e , inc lud ing le g al, ta x o r a c c o unting a d vic e . T his pre se nta tio n inc lud e s sta te me nts tha t re pre se nt o pinio ns, e stima te s a nd fo re c a sts, whic h ma y no t b e re alize d . We b e lie ve the info rma tio n pro vid e d he re in is re lia ble , a s o f the d a te he re o f, b ut d o no t wa rra nt a c c ura c y o r c o mple te ne ss. In pre pa ring the se ma te ria ls, we ha ve re lie d upo n a nd a ssume d , witho ut ind e pe nd e nt ve rific a tio n, the a c c ura c y a nd c o mple te ne ss o f a ll info rma tio n a va ila b le fro m pub lic a nd c o mpa ny so urc e s. 2

CORPORATE OVERVIEW Dig ipa th, I nc . (“Dig ipa th” o r “the Co mpa ny”) is a pub lic ly tra de d (OT CQB: DI GP) inde pe nd e nt la b o ra to ry te sting a nd me dia firm fo r the c a nna b is industry. T he Co mpa ny utilize s its e xpe rtise a nd e xpe rie nc e to pro vide re lia b le c a nna b is sa fe ty a nd po te nc y te sting , c a nna b is ne ws c o ve ra g e , a nd c o mpre he nsive ma rijua na e duc a tio n. abs, Inc . is se tting the industry sta nda rd fo r te sting a ll Digipath L fo rms o f c a nna b is-b a se d pro duc ts using F DA-c o mplia nt la b o ra to ry e q uipme nt a nd pro prie ta ry pro c e sse s to re po rt pro duc t sa fe ty a nd e ffic a c y. I n Ma y 2015, the Co mpa ny o pe ne d its first te sting la b in L a s Ve g a s, Ne va da a nd ha s pla ns to o pe n la b s in o the r le g a l sta te s. p. pro vide s a b a la nc e d a ppro a c h to T he National Mar ijuana Ne ws Cor c a nna b is ne ws, inte rvie ws, a nd e d uc a tio n with a ne ws/ ta lk ra dio sho w a nd na tio na l ma rijua na ne ws we b site fo c using o n the po litic a l, e c o no mic , me dic ina l, sc ie ntific , a nd c ultura l dime nsio ns o f the ra pidly e vo lving , a nd pro fo undly c o ntro ve rsia l, me dic ina l a nd re c re a tio na l ma rijua na industry. 3

GROWTH OF LEGAL CANNABIS MARKET 4

GROWTH IN CANNABIS LAB TESTING As le g a liza tio n spre a d s, so do sta te ma nda te s fo r c a nna b is la b te sting fo r a n inc re a sing ly c o mpre he nsive list o f • re q uire me nts: MOIST URE CONT E NT – T HC POT E NCY – CANNABINOID PROF IL ING – T E RPE NOID PROF IL ING – PE ST ICIDE S HE AVY ME T AL S – MICROBIAL SCRE E NING – MYCOT OXIN SCRE E NING – RE SIDUAL SOL VE NT S Curre ntly, 15 o f the 23 sta te s with le g a l o pe ra ting me dic a l c a nna b is ma rke ts re q uire c ultiva tio n c e nte rs, • pro duc tio n fa c ilitie s, a nd/ o r dispe nsa rie s to c o mply with va rio us la b te sting re q uire me nts. Gre e nWa ve Adviso rs, a n ind e pe nd e nt re se a rc h firm, pro je c ts lo ng -te rm re ve nue o f $553 million for lab te sting • alone if the U.S. le g a lize s c a nna b is o n a fe de ra l le ve l. Whe n a dding in re la te d se rvic e s, suc h a s da ta a na lytic s a nd c o nsulting , the re ve nue po te ntia l c o uld surpa ss • $866 million. 5

DIGIPATH LABS – LABORATORY TESTING Dig ipa th L a b s’ missio n is to pro vide pha rma c e utic a l-g ra de • a na lysis a nd te sting to the c a nna b is industry to e nsure c o nsume rs a nd pa tie nts kno w e xa c tly wha t is in the c a nna b is the y ing e st a nd to he lp ma ximize the q ua lity o f its c lie nts’ pro d uc ts thro ug h re se a rc h, d e ve lo pme nt, a nd sta nda rdiza tio n. Dig ipa th L a b s is c o mmitte d to fo llo wing Go o d L a b • Pra c tic e s tha t a re in line with c urre nt F e d e ra l a nd Sta te g o ve rning b o die s. Dr. Cindy Orse r, Ph.D., a 20-ye a r b io te c h a nd dia g no stic industry ve te ra n, le a ds the se e ffo rts o n b e ha lf o f • Dig ipa th, se rving a s Chie f Sc ie nc e Offic e r, a ssisting c a nna b is pro vide rs a nd re g ula to ry a g e nc ie s, a nd wo rking in a c a de mia in se ve ra l ke y ro le s. I n a dditio n to he r wo rk a t Dig ipa th L a b s, she ho lds 18 pa te nts a nd a utho re d 41 pe e r-re vie we d pub lic a tio ns. Dig ipa th L a b s b e g a n e a rning sub sta ntive re ve nue in Oc to b e r 2015 a nd ha s no w te ste d mo re tha n 5,500 • c a nna b is pro duc t sa mple s, re pre se nting o ve r 25,000 po unds o f c ure d flo we r fro m ma ny o f the 66 g ro we rs lic e nse d b y the Sta te o f Ne va da .* * Note tha t pa st pe r for ma nc e ma y not be indic a tive of futur e r e sults. T he r e for e , it should not be a ssume d tha t futur e pe r for ma nc e of Dig ipa th, Inc . (tog e the r with Dig ipa th L a bs, Inc ., T he Na tiona l Ma r ijua na Ne ws Cor p., 6 a nd the ir r e spe c tive a ffilia te s) will be pr ofita ble or e qua l the c or r e sponding indic a te d pa st pe r for ma nc e le ve l(s).

ENSURING SAFETY & COMPLIANCE Dig ipa th L a b s sc re e ns me dic ina l c a nna b is fo r its q ua lity, po te nc y, a nd c a nna b ino id a nd te rpe ne no id pro file s, a s we ll a s po te ntia lly ha rmful c o nta mina nts, inc luding : Re sidua l so lve nts (fo r no n-CO 2 e xtra c ts) • Pe stic ide s • He a vy me ta ls (inc luding me rc ury, a rse nic , • le a d, a nd c a dmium) Mo ld a nd ye a st • Bio lo g ic a l to xins (suc h a s myc o to xins, • a fla to xins, a nd o c ra to xins) Mic ro b ia l c o nta mina nts (inc luding E . c o li, • sa lmo ne lla , Aspe rg illus, a nd fung i) T o ta l a e ro b ic b a c te ria c o unt • 7 Gra m-ne g a tive b a c te ria •