Singlepoint Inc (OTCMKTS:SING) rode the cannabis wave but got a late start in January moving from .02 to .12 cents. SING (who is still up over 412% YTD) specializes in the acquisition of small to mid-sized companies, announced that it has closed its first round of funding to acquire a portion of Jacksam Corp., dba Convectium, the developer of an oil filling system for the cannabis market.
Convectium projects full-year 2017 sales of $3.5 million, a triple-digit increase over the year prior. The acquisition represents the first of many strategic investments.
Singlepoint Inc’s (OTCMKTS:SING) plan talks about investing stock and cash totaling $800,000 to help fund the growth of Convectium and the marketing the 710Shark and 710Seal system. Developed by Convectium, the system is capable of filling and packaging more than 100 cartridges or disposable vape pens in 30 seconds, making it the fastest and only filling and sealing system of its kind, according to the company. Convectium also offers a line of B2C products, which SinglePoint will sell online through its SingleSeed.com subsidiary.
Driven by increasing product demand and brand visibility, Convectium projects full-year 2017 revenues of $3.5 million, an increase of 150% compared to revenue of $1.4 million for full-year 2016. The company is on track to achieve this goal, as sales for the first quarter of 2017 have already significantly surpassed first-quarter sales in 2016.
“We are excited to be a part of the SinglePoint team. With their funding we expect to reach and hopefully exceed our projected revenue goals,” says Danny Davis, managing partner of Convectium.
The investment provides growth opportunities for both parties, and accelerates SinglePoint’s strategy to profitably participate in the lucrative cannabis industry without direct contact with a marijuana plant.
“We have evaluated numerous investment prospects in the cannabis space, and found there is nothing that compares to this opportunity we have with Convectium,” states SinglePoint CEO, Greg Lambrecht. “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.”
SinglePoint, Inc. 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.
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Looking back at the chart shares in SING have traded well in 2017 improving the market cap in February once the news was digested and have settled back and retraced near 50% of the initial move higher. With all cannabis stocks participating in the price and volume expansion you can expect volatility, it comes with investing in newly developed sectors. The pitfall to watch out for is the entry and exit by short term traders who can leave scorched earth behind in some of the stocks where they rotate in and out. There is a growing number of piggyback trades in sectors, and cannabis follows in the footsteps of cyber security, cloud, blockchain and bitcoin.
I do think cannabis stocks have a longer investment cycle than the previously mentioned, as we head to inevitable federal legalization. But this will not be without a footprint of entry and exit by short term day traders who are following a sector momentum strategy. The best answer for enter new sectors is to pick a stock and a price level and establish risk parameters before committing any capital to a stock or sector. 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!