Singlepoint Inc (OTCMKTS:SING) is a penny stock in the cannabis space that exploded higher last month after indicating an acquisition intent for an equipment supply play. That momentum has continued in a big way, fueled in part by an announcement that the company is officially debt-free. In conjunction, the company also let the market know that it raised more than $300K and signed a Letter of Intent to secure additional funding of $1 million.
That narrative has paid off in a big way. Traders will note 86% piled on for shareholders of the stock during the trailing month. This is emblematic of the stock. SING has evidenced sudden upward volatility on many prior occasions. What’s more, the stock has benefitted from a jump in recent trading volume to the tune of nearly 300% over the long run average. Since we last covered the name, SING has moved 100.5% higher in a strong trending move. The stock’s squeeze fever broke last week enough to finally see a pullback, but the overall upward move has been remarkable so far this year.
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.
According to company materials, “SinglePoint, Inc. is a full-service mobile technology and marketing provider. We provide solutions that allow our clients to conduct business transactions, accept donations, and engage in targeted communication through mobile devices. Our products connect small to mid-size companies to their target markets by providing innovative mobile technology at reasonable rates. SinglePoint recognized the strength in acquiring interest in undervalued subsidiaries in other markets to create a diversified holding base.”
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As noted above, the company has cleaned up its balance sheet in a big way of late, getting rid of all debt and raising significant new cash.
According to a recent press release, the company plans to use the capital to uplist to the OTCQB and become a fully reporting company this year, as well as to support its acquisition-based growth strategy. Pending due diligence, SinglePoint is optimistic that it will enter into a definitive agreement in the near future.
“We are pleased to announce our position as a debt-free company, which marks a significant milestone in our corporate history,” states SinglePoint CEO Greg Lambrecht. “The elimination of debt is on par with our growth strategy for 2017, which also calls for additional funding to become a fully reporting OTC company, and to acquire high-potential opportunities in the cannabis and technology markets.”
The announcement of its balance sheet improvement and uplisting plans follows news of the Company’s recent Letter of Intent to acquire a stake in Convectium, apparently “a profitable California-based company that created the world’s first machine capable of filling cartridges or disposables en mass for wholesale distribution to cannabis dispensaries.”
“Being debt-free provides us with the financial flexibility needed to execute our growth plan and take advantage of incredible acquisition opportunities – such as our recent transaction with Convectium – that will strengthen our brand and ultimately benefit our shareholders,” says Lambrecht.
At this time, carrying a capital value in the market of $42.9M, Singlepoint Inc has a new lease on its balance sheet. Before the recent overhaul, the company last reported no cash on the books against about $555K in total current liabilities. 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%. As more color becomes clear on the name, we will review the situation and update our take. 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!