“Greater Enforcement” of Federal Laws would have Mixed Impact in Cannabis Industry
March 01 2017 - 8:30AM
InvestorWire
New York, New York (NetworkNewsWire) – The White House struck a
chord with the marijuana industry last week when press secretary
Sean Spicer said the Department of Justice is likely to enforce
federal marijuana laws in states that have legalized recreational
pot. While the prevailing mood is disappointment among the broader
marijuana/cannabis industry, reactions and impacts are mixed among
businesses like Singlepoint, Inc. (SING) (SING
Profile), Medical Marijuana, Inc. (MJNA), Terra Tech Corp.
(TRTC) and Marijuana Company of America Inc.
(MCOA).
SinglePoint,
Inc. (SING) is building an acquisition-based cannabis
business focused on high-potential targets that service
the cannabis industry rather than those that deal directly with the
plants, and therefore won’t feel the crunch of greater federal
enforcement. With this strategy, SinglePoint is the “pick and
shovel” for cannabis businesses, providing them tools needed to run
their daily operations while positioning itself as a hedge
investment against companies that deal directly with the
plants.
The company’s SingleSeed Payments (http://www.SingleSeed.com) subsidiary, for
example, is poised to offer payment solutions to the cannabis
industry. SingleSeed has worked with small companies to provide
business solutions to cannabis dispensaries. This technology could
be applicable for medical and recreational cannabis businesses.
In an interview with MoneyTV with Donald Baillargeon (http://nnw.fm/2FLhK), SinglePoint CEO Greg Lambrecht
provided further insight into its acquisition strategy, noting that
potential targets ideally have solid EBITDA and revenue. Case in
point, SinglePoint recently signed a Letter of Intent to acquire a
stake in California-based Convectium, which manufactures a unique
and innovative oil filling machine able to fill cartridges and
disposable vape pens for dispensaries or wholesale distribution.
Convectium forecasts 2017 revenues of $3.5 million, an increase of
150% compared to revenue of $1.4 million for 2016. Lambrecht also
said the company is discussing an acquisition opportunity with a
company that is on the software side of the cannabis industry.
Following Spicer’s comments and in light of its current position
in the industry, SinglePoint issued the following statement on
Facebook:
“SING in perfect position to take advantage of the cannabis
space without touching the plant. All of SinglePoint services
available to cannabis businesses will not be impacted by any
federal law that may inhibit recreational cannabis. SinglePoint is
focused on providing business services these companies need
including, marketing, payments, and products like Convectium.”
Meanwhile, Terra Tech Corp. (TRTC) CEO Derek
Peterson focused on the economic impact of federal enforcement:
"Today's news coming out of the administration regarding the
adult use of cannabis is, of course, disappointing. We have hoped
and still hope that the federal government will respect states'
rights in the same manner they have on several other issues. The
economic impact, job creation and tax collection associated with
both medical and recreational legalization have been tremendous
throughout the country. We hope the new administration really takes
the time to understand that the money is either going into the
states' coffers or making its way to drug cartels. We also hope
that the states make a point of defending their independence in
regards to this and protect their constituent."
Terra Tech is committed to cultivating and providing high
quality medical cannabis and other agricultural products. The
company operates through two segments: Hydroponic Produce and
Cannabis Products. In addition, through its subsidiary GrowOp
Technology, it is engaged in the design, marketing and sale of
hydroponic equipment. Another subsidiary, Edible Garden Corp.,
retails locally grown hydroponic produce, herbs, and floral
products. The company also intends to operate medical marijuana
cultivation, production and dispensary facilities in Nevada and
sell cannabis flowers and cigarettes.
Also in the mix of companies with an “out-of-touch” approach to
marijuana is Medical Marijuana, Inc. (MJNA), a
family of companies specializing in hemp consumer products,
cannabis-based pharmaceuticals and medications, and services
supporting the greater cannabis industry. The company’s
subsidiaries include HempMeds, which handle distribution in the
United States, Brazil and Mexico; the bio-pharmaceutical KannaLife;
a network marketing arm called Kannaway; Wellness Managed Services;
and MPS International, a consulting firm.
Additionally, Marijuana Company of America Inc.
(MCOA) is a marketing and distribution company that plans
to deliver all the benefits of cannabis by providing a wide range
of services for cannabis businesses and entrepreneurs. MCOA
recently entered into a Letter of Intent for a joint venture with
Bougainville Ventures, Inc. designed specifically for cultivation,
processing and commercial availability of legal marijuana within
the State of Washington.
Source: 1. http://nnw.fm/H67zm
About NetworkNewsWire
NetworkNewsWire (NNW) provides news aggregation and syndication,
enhanced press release services and a full array of social
communication solutions. As a multifaceted financial news and
distribution company with an extensive team of journalists and
writers, NNW is uniquely positioned to best serve private and
public companies who need to reach a wide audience of investors,
consumers, journalists and the general public. NNW has an
ever-growing distribution network of more than 5,000 key
syndication outlets across the country. By cutting through the
overload of information in today's market, NNW brings its clients
unparalleled visibility, recognition and brand awareness. NNW is
where news, content and information converge. For more information,
visit https://www.networknewswire.com.
Please see full disclaimers on the NetworkNewsWire website:
https://www.networknewswire.com/disclaimer.
Source:
NetworkNewsWire
Contact:
NetworkNewsWire (NNW)
New York, New York
www.NetworkNewsWire.com
212.418.1217 Office
Editor@NetworkNewsWire.com
SinglePoint (PK) (USOTC:SING)
Historical Stock Chart
From Aug 2024 to Sep 2024
SinglePoint (PK) (USOTC:SING)
Historical Stock Chart
From Sep 2023 to Sep 2024