Singlepoint Inc (OTCMKTS:SING) is a micro-cap ancillary player in the burgeoning financial arm of the cannabis patch that has started to garner attention as the penny stock bounces up the chart aggressively in recent days. The company has been vocal of late in its support for a congressional push that “validates the mission of its SingleSeed (www.singleseed.com) subsidiary to provide much-needed payment processing solutions to the burgeoning legal cannabis industry,” according to company management.
The company’s recent press release continues, to note: “Though a total of 28 states have legalized marijuana in some form of consumption/use, marijuana is still federally illegal, which hinders licensed marijuana businesses from opening an account with most national banks. Cannabis businesses must instead deal in cash, which puts them at risk of break-ins, theft and other threats, as well as creates space for tax fraud. However, for smaller banks, credit unions and companies like SingleSeed, the lack of banking solutions creates the opportunity to fill increasing demand.”
Singlepoint Inc (OTCMKTS:SING) trumpets itself as a company that provides mobile technology and marketing solutions for small to mid-size businesses, nonprofits, and religious organizations. Its solutions enable clients to conduct business transactions, accept donations, and engage in targeted communication through mobile devices.
The company offers Text2Bid, a mobile bidding solution that allows users to bid in auctions from text or Web-enabled phones; Donate by Text, a solution that allows nonprofits to securely collect donations via text; Pay by Text that allows customers to pay for products using their mobile phones; and Point of Sale terminals to provide customers the convenience of using debit/credit cards right at checkout.
It also provides Oomy, a solution that enables companies to track and manage their fleet vehicles, drivers, and deliveries; text mobile marketing solutions; SingleSwipe that enables customers to turn any device into a point of sale payment processor with the SingleSwipe card reader; and other solutions.
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.
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Speaking to the company’s support of recent legislative pressure for banking reform, a group of 10 senators recently penned a letter to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) encouraging guidance and changes that could ultimately open the door for banking services for legal cannabis businesses. Among other key points, the letter explains that banking products and services to the cannabis industry will hedge businesses against unnecessary risks while benefiting the federal government.
“The fledgling legal market for marijuana is around $7 billion, a figure that’s dwarfed by the overall billion US market, most of which remains illegal. This business environment is an invitation to tax fraud, robberies, money laundering, and organized crime … With tens of millions of Americans soon gaining legal access to marijuana under state laws, new guidance is necessary in order to allow banks to enhance the availability of financial services for indirect businesses that service the marijuana industry. This will not only bolster the safety of our communities, but it will also help to spur economic growth across the country,” the three-page letter reads.
Management notes their position in the company’s recent release: “As one of the first merchant service providers in the marijuana industry, SingleSeed applauds the senators’ efforts and will offer marketing solutions and credit card processing to help cannabis dispensaries safely and successfully grow their businesses.”
“We are witnessing exciting, groundbreaking advances in the marijuana industry, and are encouraged to see congressional-level support for banking measures that would further revolutionize the way cannabis companies do business,” says SinglePoint CEO Greg Lambrecht. “The regulatory environment is rapidly changing and SingleSeed is gearing up to provide dispensaries with payment processing solutions specifically tailored to their needs.”
We’ve witnessed 82% added to share values of the stock over the past week of action. Market participants may want to pay attention to this stock. SING has evidenced sudden upward volatility on many prior occasions. Furthermore, the company has seen an influx in interest of late, with the stock’s recent average trading volume running greater than 210% above its longer-run average levels.
Currently trading at a market capitalization of $10.1M, Singlepoint Inc has virtually no cash on the books, which stands against about $555K in total current liabilities. One should also note that debt has been growing over recent quarters. SING is pulling in trailing 12-month revenues of $6K. However, the company is seeing declines on the top line on a quarterly y/y basis, with revenues falling at -6.6%. We will update the story again soon as developments transpire. For continuing coverage on shares of $SING stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!