Marijuana Industry Acquisitions on the Rise as Companies to Diversify Portfolios, Increase Revenue Streams
February 15 2017 - 8:30AM
InvestorWire
New York, New York (NetworkNewsWire) – The global marijuana
industry continues to develop at an impressive pace, driven by new
developments in the field of cannabis-based pharmaceutics as well
as the legalization of both medicinal and recreational use in a
growing number of states. As a result, M&A activity in the
market is heading toward exponential growth as well. Acquisitions
help public companies diversify their portfolios and revenue
streams while providing private companies access to more financing.
Public companies such as SinglePoint, Inc. (SING) (SING
Profile), Vinergy Resources Ltd.
(VNNYF) and ChineseInvestors.com, Inc.
(CIIX) have already initiated or completed such
acquisitions, encouraged by the significant growth potential that
cannabis-based product manufacturing businesses bring to the table.
This impressive potential is perfectly exemplified by GW
Pharmaceuticals plc (GWPH), a biopharma company focused on
developing cannabinoid prescription medicines.
With a reputation as the world’s largest company involved in the
production and commercialization of cannabis-based therapeutics,
GW Pharmaceuticals (GWPH) has operations in
Europe, Canada, the United States and Asia. Based on its
proprietary cannabinoid product platform, GW Pharma has developed
therapies for the treatment of various conditions, including
multiple sclerosis-related spasticity and neuropathic pain. Its
product pipeline is also targeting tuberculosis sclerosis complex,
infantile spasms, adult epilepsy, schizophrenia and more. But GW
Pharma is one of the few developers of cannabis-based products or
therapies that are publicly traded, given the legal hurdles and the
lingering public misconceptions facing the industry. This is why a
large number of growers, dispensaries and product companies choose
to operate privately or to be acquired by other public companies
with interests in the industry. As a $3 billion company, GW
Pharmaceuticals is a prime example of the massive potential
cannabis offers the public market.
SinglePoint
(SING), a leading provider of mobile technology and payment
solutions, is one such public company, having already established a
strong presence on the legal marijuana market via its SingleSeed
Payments subsidiary. Although acquired a long time ago,
SingleSeed was only recently reawakened to take advantage of the
massive growth of the global marijuana industry. The subsidiary was
relaunched with the specific goal of providing highly reliable
non-cash payment processing and mobile marketing tools to legal
cannabis businesses. Offering these businesses the tools they need
to thrive, in the absence of clear federal regulations and access
to secure financing services, has made SinglePoint one of the most
important players in the ancillary marijuana services market.
NetworkNewsWire
Exclusive Audio Interview with SinglePoint, Inc. (SING)
Driven by SingleSeed’s success, SinglePoint has plans to
continue its acquisition strategy and recently announced its Letter
of Intent to acquire an interest in Convectium, the manufacturer of
an innovative and unique oil filling machine for disposable vape
pens or cartridges. Convectium’s proprietary systems are unique in
that they can fill and package more than 100 disposable pens or
cartridges in as little as 30 seconds. The acquisition, likely to
be completed before summer, is an important opportunity for
SinglePoint’s growth strategy.
“One of the reasons to operate as a public company is to use
your stock and your ability to raise money to acquire revenue.
We’re doing exactly what we’re supposed to be doing; we are looking
for private companies to buy and position them as part of the
SinglePoint team. Our broader roll-up strategy is to roll up 10
companies, accelerate our growth, and create multiple revenue
streams,” SinglePoint CEO Greg Lambrecht explains.
Canada’s Vinergy Resources (VNNYF) is also taking active steps
toward growing its product portfolio to become a key player in the
global cannabis industry. Late last year, the company announced
plans to acquire MJ BioPharma, a cannabis technology company
focused on the development of new extractions and formulations for
medicinal and recreational use, both domestically and
internationally. In addition to the MJ BioPharma acquisition,
Vinergy has also initiated the acquisition of up to 51 percent of a
large European plant with an extensive catalogue of more than 2,000
cannabis and hemp strains. The name of the European company has not
yet been disclosed.
ChineseInvestors.com (CIIX), a U.S.-based information
technology company focusing on providing real-time financial
information in Chinese for the global Chinese population, has also
expanded into the medical marijuana industry via subsidiary
ChineseCBDoil.com. A new website, targeting a population of roughly
2 billion Chinese-speaking individuals, was launched at the end of
January, and the company also has plans to retail hemp oil and
related products both in China and across the United States.
Industry analysts forecast the cannabis sector will jump to
nearly $11 billion in legal sales by the year 2019, and wide-scale
legalization at a state-level has awakened incredible opportunity
for public and private entities competing in the market to capture
their share. Moving forward, it’s likely the burgeoning industry is
positioning for a flurry of M&A activity and continued
growth.
For more information on Singlepoint, Inc. (SING) please visit:
Singlepoint,
Inc. (SING)
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