The Nevada Tax Department is taking steps to address issues with state-licensed cannabis testing facilities. According to the Las Vegas Review-Journal, four of the the state’s nine licensed cannabis testing facilities have been suspended in the last five months.
The most recent suspension was issued to DigiPath Labs (OTCQB: DIGP). Although the specific reason for DigiPath’s suspension was not mentioned, Nevada Tax Department spokeswoman Stephanie Klapstein said that the suspension was due to the company not following proper procedures laid out by the state.
“We are grateful to the Department of Taxation for their input and are working aggressively with state regulators to correct all of the issues raised by their review of our operations,” said Todd Denkin, President and COO of Digipath, in a press release.
This is not the first time that DigiPath has run into trouble with state officials. In June of 2017, the company nearly lost its license after it sent out an e-mail advertising another company’s “cannabis-infused dining experience” and “cannabis cocktail hour.”
In lieu of license revocation, DigiPath created and distributed a handout on Nevada’s cannabis laws, hosted several educational lectures on cannabis laws and donated $50,000 to an ongoing pilot study at Roseman University of Health Sciences on drug abuse among children.
Speaking with the Las Vegas Review-Journal, Klapstein said that the Tax Department wants to eliminate any testing issues early before they become cause for greater concern.
“Our aim is to address issues early — well before anything rises to the level of a public health or safety concern,” Klapstein said. “Independent testing labs serve an essential function as quality assurance before products reach the public. We want them to understand we have a zero-tolerance policy when it comes to regulatory noncompliance, even in cases where good lab practices are not followed but there is no imminent public health concern.”