http://www.cannabisfn.com/merrill-lynch-takes-bullish-stance-of-cannabis-testing-industry/ Spencer Schredder \t\t\t\t\t \t\t\t\t\t\t December 17th, 2015 \t\t\t\t\tBank of America Merrill Lynch recently released a new biotechnology report focused on medical cannabis called "Medical cannabis has high POTential: a joint biotech & tools primerâ€. In the report, the analyst takes a detailed look at the current medical marijuana landscape and the various companies operating within it, while being bullish on the overall cannabis testing market and the growth prospects for tools within it. The report mentions a number of cannabis testing companies: "Cannabis testing market in the US consists primarily of small providers of testing and consulting services. Some of the leading cannabis testing and consulting services providers include: Steep Hill Labs, CannLabs (OTC: CANL), DigiPath (OTC: DIGP), Signal Bay (OTC: SGBY), The Werc Shop, and Green Standards Diagnostics. Due to rapidly evolving and potentially conflicting legislation enacted on a state by state basis, the cannabis testing industry is subject to disruptive changes. Competition is based on price, regulatory compliance, vendor relationships, and ease of use of services.†And, indicates that the firm is bullish on the industry"s prospects: "The cannabis industry is poised for growth if cannabis legalization and use expand. As the cannabis industry expands, we expect to see a corresponding increase in cannabis medical research and the implementation of cannabis testing and labeling regulations, which should drive adoption and growth of life sciences tools within this market in our view. "While progress has been slow and much work remains to be done on the set up and implementation of a standard regulatory framework for the testing of cannabis products, there have been some recent steps in the right direction. In September 2015, California House passed a bill (California bill AB 266) that mandates the lab testing of all medical cannabis for regulatory purposes on or before July 1, 2017 and we expect other states where cannabis has been legalized in some form to follow. Many stakeholders in the cannabis industry are also showing support for regulatory testing requirements in order to ensure a safe access to cannabis.†DigiPath Inc. (OTCQB: DIGP), a leading cannabis testing provider with a flagship laboratory in Nevada, believes that the report is spot-on with its analysis. "This analysis confirms what our own research has found, and what we"ve built our business model around: the legal cannabis sector is growing rapidly, and the demand for cannabis testing facilities will only increase as more states implement strict safety standards,†notes Todd Denkin, CEO and president of Digipath Inc. and Digipath labs. According to the report, medical cannabis is already a $2.9 billion business and could double, while the cannabis testing sector is estimated to reach $800-900 million by 2020. "When we designed the DigiPath Labs flagship location outside Las Vegas, we set out to create the testing lab of the future. We combined the finest instrumentation on the market with exacting testing procedures to ensure that we will always be ahead of regulators,†said Mr. Denkin. "This report is yet another validation of our strategy.†Shares of DigiPath Inc. opened 10% higher during today"s trading.