Cannabis Industry Leaders Drive Growth with Acquisition Strategies and Territorial Expansion
NetworkNewsWire Editorial Coverage: Exceeding $7.2 billion in 2016, the legal cannabis market is maintaining a rapid expansion rate, according to Forbes, thanks to a demand for both medical marijuana and legal adult recreational sales in many U.S. states. Growth is expected to continue at a compound annual rate of 17 percent, but it is more than a diverse and accessible customer base fueling the fire. Companies such as SinglePoint, Inc. (SING) (SING Profile) have been busy with acquisitions that have expanded its capabilities and reach. The company not only serves the legal markets in Arizona, but also California, Nevada, and potentially other soon-to-be-legal markets such as Texas. This pattern is industry-wide. Terra Tech Corp. (TRTC), MassRoots, Inc. (MSRT), ABcann Global Corp. (ABCCF) (ABCN), and Medical Marijuana, Inc. (MJNA) have also trended with acquisitions and expansions, giving the industry the boost everyone has anticipated.
SinglePoint, Inc. (SING) recently made two major acquisitions: Convectium, a manufacturer and supplier of vaporizer filling machines; and DIGS Hydro, a Southern California dispensary operator. With these two acquisitions, SinglePoint in the second quarter grew revenues by 378x compared to the first quarter of 2017 (http://nnw.fm/82o4T). As noted in a press release discussing its current position, SinglePoint’s acquisition strategy has a third transaction underway.
Detailing the success of the company’s acquisition-based growth strategy, SinglePoint CEO Greg Lambrecht in a recent press release, said, “…SinglePoint is in a better position than it has ever been before. We are looking at additional companies and plan to complete additional acquisitions prior to the end of the year. We are well capitalized to continue acquisitions and we are optimistic to complete around three more acquisitions and significantly increase the company’s revenue.”
A closer look at SinglePoint’s acquisition history underscores Mr. Lambrecht’s favorable sentiment of the company’s position in the cannabis market. Its 90-percent stake in DIGS Hydro, which currently has two operational stores strategically located close to established licensed growers, has positioned SinglePoint as a leading provider of a wide range of growing equipment and accessories for individual and commercial plant cultivators in California (http://nnw.fm/oh7ZW). The strategy yields considerable potential, as recreational cannabis is projected to be fully legalized by June 2018. DIGS Hydro’s products include all-in-one systems for growing plants plus grow rooms, supplies, HVAC system setup, hydroponic garden products, and accessories. Territorial growth into large, opportunistic markets like this promises to fuel continued growth for the company and the industry.
In March of 2017, SinglePoint made an investment in Convectium, the creator of a unique oil filling machine capable of filling cartridges or disposable vape pens for wholesale distribution to dispensaries. Convectium’s 710Shark and 710Seal system can fill and package up 100+ cartridges or disposable vape pens in 30 seconds. Leaning on the marketability of this first-of-its-kind system for the cannabis industry, as well as its line of B2C products, Convectium previously forecast full-year 2017 sales of $3.5 million (http://nnw.fm/Uz1hR).
“We have evaluated numerous investment prospects in the cannabis space, and found there is nothing that compares to this opportunity we have with Convectium,” Lambrecht stated in a press release announcing the deal (http://nnw.fm/WrO6R). “With this transaction, we will acquire a stake in a cannabis business that never touches a marijuana plant. This is the strategy we will use as we move forward to hedge us against changing federal and state laws.”
In August, SinglePoint signed a Letter of Intent to acquire a 51-percent stake in Phoenix-based medical marijuana distribution company, Dr. FeelGood. With its acquisition of Dr. FeelGood on the horizon, SinglePoint will soon add another revenue stream to its model, as well as the decades of expertise of owners Scott Riley and Jeff Clevenger who will run the daily operations of Dr. FeelGood and assist with its expansion strategy.
The initial plan calls for the development of a delivery platform utilizing SinglePoint’s location-based delivery application. Additional features, such as a directory and ordering system to directly compete with Leafly and WeedMaps, will then be implemented to cement the technology’s position in the market. The collaboration supports Dr. FeelGood’s existing plans to build the app to quickly meet existing and growing interest it the technology.
While SinglePoint enjoys a unique, diversified position in the cannabis industry, the company is joined by several other innovators demonstrating the girth of the market.
Terra Tech Corp. (TRTC) saw a 57.9-percent increase in cannabis-related sales in Q2 2017 compared to the same period during 2016. The company’s Edible Garden subsidiary provides locally-grown herbs and greens nationwide, serving over 40 million medical cannabis customers a month, available at over 1,800 retail outlets. It also recently signed an agreement (http://nnw.fm/QcAk4) to purchase 50 percent of NuLeaf Sparks Cultivation LLC and NuLeaf Reno Production LLC, giving it access to the cannabis cultivation and medical market in Nevada. Two production facilities are under construction in the state from these entities – a 30,000-square-foot facility in Sparks, Nevada, and a 15,000-square-foot facility in Reno.
MassRoots, Inc. (MSRT) recently announced a $12 million stock deal (http://nnw.fm/uoKq3) in the acquisition of CannaRegs Inc., a platform able to track cannabis regulation changes at the municipal, state, and federal level. The company has reported over $450,000 in contractually obligated annual revenue and is also tapping into the legal cannabis market in California. It also entered into a Definitive Agreement with Odava, a company involved in compliance, supply chain management, and point-of-sale technology. The agreement gives MassRoots access to the Oregon market, while its December 2016 acquisition of DDDigtal Inc. gave it access to a high-volume menu management and online ordering platform, which processed more than $5 million in transactions between May and December that year.
ABcann Global Corp. (ABCCF) (ABCN) recently announced expansion plans of its own. In Q3 2017, it will build a 100,000-square-foot facility in Napanee, Ontario, revised from an original phase 1 plan of 71,000 square feet for its Kimmett facility (cultivation is expected to begin by Q4 2018). Also, the company revealed production capacity at the Vanluven facility will double to serve its growing patient base, with first cultivation anticipated for Q1 2018. The company also aims to serve the booming Canadian cannabis market through its acquisition of ABcann Medicinals, one of the dominant medical growers of organic, pesticide-free product in the country. In addition, it announced the purchase of land that would increase its production by 20-fold. With a $43 million cash position only three months after becoming a publicly traded company, ABcann is positioned as one of the leading medical cannabis growers in Canada.
Medical Marijuana, Inc. (MJNA), which merged with CannaBANK in 2011, revealed an acquisition of Kannaway in 2015, a network marketing company, to help expand its brand of cannabidiol-based powders, proteins and supplements. Kannaway’s sales staff in the U.S. and expansion into Europe and South America didn’t hurt with territorial expansion either. It also has subsidiaries in Brazil and Mexico, and an investment in AXIM Biotechnologies, a cannabinoid research and development firm. In July 2017, Kannaway, now an MJNA subsidiary, announced its largest single-day revenue in company history, and also recently announced a 135-percent revenue increase in Q1 2017 over the same quarter a year earlier.
The cannabis industry is growing by leaps and bounds to support demand, helped by acquisition and territorial expansion activity of leading companies. Ease of purchase is aiding sales too; case-in-point, www.SingleSeed.com, launched by SinglePoint to provide a wide variety of business solutions for dispensaries, retailers and other cannabis companies. The bold strategies of SinglePoint and other companies appear to be paying off as the broader marijuana market continues to grow at an accelerated pace.
For more information on SinglePoint please visit: Singlepoint (SING) or www.SinglePoint.com
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
NetworkNewsWire Editorial Coverage: Exceeding $7.2 billion in 2016, the legal cannabis market is maintaining a rapid expansion rate, according to Forbes, thanks to a demand for both medical marijuana and legal adult recreational sales in many U.S. states. Growth is expected to continue at a compound annual rate of 17 percent, but it is more than a diverse and accessible customer base fueling the fire. Companies such as SinglePoint, Inc. (SING) (SING Profile) have been busy with acquisitions that have expanded its capabilities and reach. The company not only serves the legal markets in Arizona, but also California, Nevada, and potentially other soon-to-be-legal markets such as Texas. This pattern is industry-wide. Terra Tech Corp. (TRTC), MassRoots, Inc. (MSRT), ABcann Global Corp. (ABCCF) (ABCN), and Medical Marijuana, Inc. (MJNA) have also trended with acquisitions and expansions, giving the industry the boost everyone has anticipated.
SinglePoint, Inc. (SING) recently made two major acquisitions: Convectium, a manufacturer and supplier of vaporizer filling machines; and DIGS Hydro, a Southern California dispensary operator. With these two acquisitions, SinglePoint in the second quarter grew revenues by 378x compared to the first quarter of 2017 (http://nnw.fm/82o4T). As noted in a press release discussing its current position, SinglePoint’s acquisition strategy has a third transaction underway.
Detailing the success of the company’s acquisition-based growth strategy, SinglePoint CEO Greg Lambrecht in a recent press release, said, “…SinglePoint is in a better position than it has ever been before. We are looking at additional companies and plan to complete additional acquisitions prior to the end of the year. We are well capitalized to continue acquisitions and we are optimistic to complete around three more acquisitions and significantly increase the company’s revenue.”
A closer look at SinglePoint’s acquisition history underscores Mr. Lambrecht’s favorable sentiment of the company’s position in the cannabis market. Its 90-percent stake in DIGS Hydro, which currently has two operational stores strategically located close to established licensed growers, has positioned SinglePoint as a leading provider of a wide range of growing equipment and accessories for individual and commercial plant cultivators in California (http://nnw.fm/oh7ZW). The strategy yields considerable potential, as recreational cannabis is projected to be fully legalized by June 2018. DIGS Hydro’s products include all-in-one systems for growing plants plus grow rooms, supplies, HVAC system setup, hydroponic garden products, and accessories. Territorial growth into large, opportunistic markets like this promises to fuel continued growth for the company and the industry.
In March of 2017, SinglePoint made an investment in Convectium, the creator of a unique oil filling machine capable of filling cartridges or disposable vape pens for wholesale distribution to dispensaries. Convectium’s 710Shark and 710Seal system can fill and package up 100+ cartridges or disposable vape pens in 30 seconds. Leaning on the marketability of this first-of-its-kind system for the cannabis industry, as well as its line of B2C products, Convectium previously forecast full-year 2017 sales of $3.5 million (http://nnw.fm/Uz1hR).
“We have evaluated numerous investment prospects in the cannabis space, and found there is nothing that compares to this opportunity we have with Convectium,” Lambrecht stated in a press release announcing the deal (http://nnw.fm/WrO6R). “With this transaction, we will acquire a stake in a cannabis business that never touches a marijuana plant. This is the strategy we will use as we move forward to hedge us against changing federal and state laws.”
In August, SinglePoint signed a Letter of Intent to acquire a 51-percent stake in Phoenix-based medical marijuana distribution company, Dr. FeelGood. With its acquisition of Dr. FeelGood on the horizon, SinglePoint will soon add another revenue stream to its model, as well as the decades of expertise of owners Scott Riley and Jeff Clevenger who will run the daily operations of Dr. FeelGood and assist with its expansion strategy.
The initial plan calls for the development of a delivery platform utilizing SinglePoint’s location-based delivery application. Additional features, such as a directory and ordering system to directly compete with Leafly and WeedMaps, will then be implemented to cement the technology’s position in the market. The collaboration supports Dr. FeelGood’s existing plans to build the app to quickly meet existing and growing interest it the technology.
While SinglePoint enjoys a unique, diversified position in the cannabis industry, the company is joined by several other innovators demonstrating the girth of the market.
Terra Tech Corp. (TRTC) saw a 57.9-percent increase in cannabis-related sales in Q2 2017 compared to the same period during 2016. The company’s Edible Garden subsidiary provides locally-grown herbs and greens nationwide, serving over 40 million medical cannabis customers a month, available at over 1,800 retail outlets. It also recently signed an agreement (http://nnw.fm/QcAk4) to purchase 50 percent of NuLeaf Sparks Cultivation LLC and NuLeaf Reno Production LLC, giving it access to the cannabis cultivation and medical market in Nevada. Two production facilities are under construction in the state from these entities – a 30,000-square-foot facility in Sparks, Nevada, and a 15,000-square-foot facility in Reno.
MassRoots, Inc. (MSRT) recently announced a $12 million stock deal (http://nnw.fm/uoKq3) in the acquisition of CannaRegs Inc., a platform able to track cannabis regulation changes at the municipal, state, and federal level. The company has reported over $450,000 in contractually obligated annual revenue and is also tapping into the legal cannabis market in California. It also entered into a Definitive Agreement with Odava, a company involved in compliance, supply chain management, and point-of-sale technology. The agreement gives MassRoots access to the Oregon market, while its December 2016 acquisition of DDDigtal Inc. gave it access to a high-volume menu management and online ordering platform, which processed more than $5 million in transactions between May and December that year.
ABcann Global Corp. (ABCCF) (ABCN) recently announced expansion plans of its own. In Q3 2017, it will build a 100,000-square-foot facility in Napanee, Ontario, revised from an original phase 1 plan of 71,000 square feet for its Kimmett facility (cultivation is expected to begin by Q4 2018). Also, the company revealed production capacity at the Vanluven facility will double to serve its growing patient base, with first cultivation anticipated for Q1 2018. The company also aims to serve the booming Canadian cannabis market through its acquisition of ABcann Medicinals, one of the dominant medical growers of organic, pesticide-free product in the country. In addition, it announced the purchase of land that would increase its production by 20-fold. With a $43 million cash position only three months after becoming a publicly traded company, ABcann is positioned as one of the leading medical cannabis growers in Canada.
Medical Marijuana, Inc. (MJNA), which merged with CannaBANK in 2011, revealed an acquisition of Kannaway in 2015, a network marketing company, to help expand its brand of cannabidiol-based powders, proteins and supplements. Kannaway’s sales staff in the U.S. and expansion into Europe and South America didn’t hurt with territorial expansion either. It also has subsidiaries in Brazil and Mexico, and an investment in AXIM Biotechnologies, a cannabinoid research and development firm. In July 2017, Kannaway, now an MJNA subsidiary, announced its largest single-day revenue in company history, and also recently announced a 135-percent revenue increase in Q1 2017 over the same quarter a year earlier.
The cannabis industry is growing by leaps and bounds to support demand, helped by acquisition and territorial expansion activity of leading companies. Ease of purchase is aiding sales too; case-in-point, www.SingleSeed.com, launched by SinglePoint to provide a wide variety of business solutions for dispensaries, retailers and other cannabis companies. The bold strategies of SinglePoint and other companies appear to be paying off as the broader marijuana market continues to grow at an accelerated pace.
For more information on SinglePoint please visit: Singlepoint (SING) or www.SinglePoint.com
Please see full disclaimers on the NetworkNewsWire website applicable to all content provided by NNW, wherever published or re-published: http://NNW.fm/Disclaimer
