Singlepoint Inc (OTCMKTS:SING) is a holding company specializing in the acquisition of small to mid-sized companies with an emphasis on new technologies. In recent months, we see this company as increasingly a play on the cannabis patch as part of its pivot away from an emphasis solely built around mobile communications. This pivot has pushed share values higher primarily due to the company’s experienced management team and the clear growth trend inherent in the cannabis business.
New Frontier Data, a cannabis market research and analytics firm, presented its 2017 annual report recently, which mapped out state-by-state sales to $24.5 billion in 2025 and projecting that cannabis industry employment could top 255,000 jobs within three years, New Frontier has joined other prominent analysts in signaling huge promise for the pot industry. But the company has also made headway as a holding company with an aggressive bearing in the market for umbrella brand exposure. If you’re not familiar with this name, here is a quick precis.
Singlepoint Inc (OTCMKTS:SING), according to its press materials, has grown from a mobile technology provider to a publicly traded holding company. Through diversification into horizontal markets, SinglePoint is building its portfolio by acquiring an interest in undervalued subsidiaries, thereby providing a rich, diversified holding base.
Through its subsidiary company SingleSeed the company is providing products and services to the cannabis industry. Convectium was founded in October of 2013 and based in South Orange County, California. Convectium does not touch plants; its branding, packaging and equipment solutions help grow the companies that do according to the company.
Singlepoint Inc was formerly known as Carbon Credits International, Inc. and changed its name to SinglePoint, Inc. in February 2013. The company was founded in 2006 and is headquartered in Phoenix, Arizona.
Getting the Story Straight
As noted above, the company has found “key player” status in the cannabis space with its moves in SingleSeed and Convectium.
The company recently funded Convectium, the developer of a unique oil filling machine and a leader in the cannabis market space. Convectium sells a line of products on its website, www.Convectium.com, and sells its industry leading machines at 710shark.com. The machine will soon be available on SingleSeed.com as well. SING’s stake in Convectium represents a top line growth driver for the company that could reach $3.5 million in sales during FY2017, representing an increase of 150% over its FY2016 revenue.
In addition, the company’s CEO, Greg Lambrecht, is already becoming seen as one of the go-to industry leaders in terms of voice and prominence, which is not something to be taken lightly. This is evidenced by the fact that Forbes magazine recently sought Lambrecht out for expert commentary and opinion in a recent piece on the impact of Trump administration views and PR where the cannabis industry is concerned in North America: “The current administration has made it very clear they would like to empower the states and Trump has even stated his belief in how medical marijuana can help people. We believe the administration will stick to their word on empowering the states. In Phoenix we have many medical shops, none of which have relayed to us that they are being impacted yet by the administration. The biggest impact the current administration can have in favor of cannabis in the near term would be to give guidelines on how this business can be banked.” (Greg Lambrecht via Forbes)
But that’s just one of the storylines here.
The other is something similar to a miniature Berkshire Hathaway. SING seeks to provide shareholder value by engaging in value-added M&A. In other words, they look to acquire subsidiaries where they find extra value given inside management expertise and synergies with other subsidiaries.
Lambrecht states, “This is an exciting time for SinglePoint. We continue to increase value for our shareholders by focusing on acquisitions while strengthening inside sales and fund raising. We expect 2017 to be a great year for SinglePoint and look forward to providing additional updates on future acquisition targets, joint ventures, and new products.”
The other storyline, as noted above, is about SingleSeed.com, which seeks to engage in “the online sale of cannabis products to cannabis dispensaries.” Leveraging key distribution agreements and a highly-integrated marketing plan, SingleSeed is expected to drive significant sales this year.
“The long-term vision is to build SingleSeed.com into a market-place for dispensaries to buy the products they need to do business,” says Lambrecht. “SingleSeed will also provide consulting services to cannabis businesses who need help gaining traction and success in their strategies.”
To wrap things up, we would note that one might combine the prior ideas and get somewhere still more interesting: SinglePoint is currently in negotiations for more acquisitions in the cannabis space, a market expected to reach $24.5 billion by the year 2025.