SinglePoint’s Enterprise Strategy Helps Investors Diversify
Ryan Allway
March 27th, 2017
News, Top News
The cannabis industry is projected to reach $50 billion in size over the next decade, which has created a tremendous opportunity for investors. Cultivators and retail dispensaries may provide the most direct exposure, but investors may want to consider equipment providers and consumer product makers as a way to diversify their exposure, particularly with the threat of federal-level intervention from the Trump Administration.
In this article, we will take a look at SinglePoint Inc.’s (OTC Pink: SING) focus on cannabis enterprises rather than cultivation and consumers and how it could help cannabis investors diversify their portfolios at a critical time for the industry.
Focusing on Enterprises
SinglePoint has developed a series of technologies serving cannabis businesses, as well as a select line-up of consumer devices.
The company’s flagship product is a best-in-class mobile commerce and communications platform that enables dispensaries to accept electronic payments and market to consumers through SMS messages. By building a network of dispensaries leverage its SMS marketing technology, the company is positioning itself to take advantage of a vast opportunity in the payments space when federal guidelines surrounding cannabis banking are finalized.
In March, the company closed the first round of funding to acquire a portion of Jacksam Corp., dba Convectium, the developer of a unique oil filling system poised to revolutionize the cannabis industry. Convectium’s 710Shark technology is sold to cannabis cultivators and extractors to help them fill up to 100 cartridges of cannabinoid oils in just 30 seconds. These child-proof cartridges are then immediately ready for retail distribution at dispensaries and other locations.
Convectium projects full-year 2017 revenue of $3.5 million, an increase of 150% compared to revenue of $1.4 million in 2016. The company is well on its way to achieving these goals with first quarter 2017 sales that have already significant surpassed sales from the comparable quarter a year ago as product demand and brand visibility is on the rise.
EquipCanna | Fill-Seal-Sell Cannabis System from Convectium on Vimeo.
Convectium also owns a number of consumer brands that it licenses, including BlackoutX, Hi-Lifer, and HazeSticks. These are consumer-level devices for consuming cannabis extracts, but the company does not sell actual cannabis or cannabis extracts. This means that investors gain access to both enterprise and consumer products without the regulatory risks associated with cultivating or selling marijuana outright.
Importance of Diversification
Cannabis investors face a dilemma when it comes to committing capital to the space that should shape how their portfolios are constructed.
On one hand, the cannabis industry is rapidly growing and expected to reach $50 billion in size over the next decade, according to Cowen & Co. Public support for cannabis legalization has also been on the rise, according to Quinnipiac, with 93% of Americans supporting medical marijuana and 71% opposing a federal crackdown on legal marijuana. The legalization of recreational use in states like California and Nevada could also prove a tipping point.
On the other hand, President Trump hasn’t exactly been fully supportive of the industry with the appointment of Jeff Sessions as Attorney General and the risk of a federal crackdown on legal cannabis remains a large risk factor. The industry could also face eight years of federal-level issues even if a full-scale crackdown doesn’t occur, which could include a lack of banking access, difficulties with FDA approvals, and other federally-driven factors.
Cannabis investors can leverage diversification to reduce the risks associated with directly handling marijuana. For example, a cultivator or dispensary could face issues with payments or changes to legalization, but equipment-providers like SinglePoint face less risk since they only provide equipment to businesses and consumers. Equipment provides also provide a differentiated source of revenue and a potentially wider enterprise customer base.
Looking Ahead
SinglePoint Inc. (OTC Pink: SING) represents a compelling investment opportunity within the burgeoning cannabis industry. With a focus on enterprise consumers, the company offers diversified exposure to the industry and a compelling line-up of products. Investors interested in the space may want to take a closer look as the company completes its acquisition of Convectium and adds revenue-generating operations to the mix.
For more information, visit the company’s website or CannabisFN’s company profile.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
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Matt Hawkins is the founder and managing principal of Cresco Capital Partners, LLC (“Cresco”), a private equity firm focused specifically on investing in the legalized cannabis industry. Since its inception in the summer of 2015, Cresco has made 14 investments out of its first fund and is currently raising this fund, Fund II. Prior to the […]
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SinglePoint, Inc (SING) is a technology and investment company with a focus on acquiring companies that will benefit from the injection of growth capital and technology integration.
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CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
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