New York, New York (NetworkNewsWire) – The number of states in
which the medical and recreational use of marijuana is legal
continues to grow. Medical marijuana is now permitted in 28 states
and Washington D.C. Last year, the North American legal marijuana
industry grew to $6.7 billion, a 34 percent increase in just one
year, according to Arcview Market Research. With the black market
included, sales topped $56 billion. Public support is increasing as
well – 57 percent of Americans supported the legalization of
marijuana in 2016, up from 52 percent in 2014 (1). With
the market expanding and public support increasing, there are more
opportunities to invest than ever before. SinglePoint, Inc.
(SING) (SING
Profile), The Scotts Miracle-Gro Company (SMG), General
Cannabis Corp. (CANN), Terra Tech Corp. (TRTC) and
Kush Bottles, Inc. (KSHB) are just a few companies
with major investments in the growing legal marijuana industry.
Focused on the acquisition of small- to medium-sized technology
companies, SinglePoint
(SING) has an acquisition portfolio with roots in the
cannabis industry. Most recently, the company acquired a stake in
Convectium, the developer of a unique oil filling and packaging
system for cartridges and vape pens. The 710Shark oil filling
machine and 710Seal system increase cartridge and vape device
output by more than 100x. Eliminating hand filling, the system can
fill 100 cartridges in less than 20 seconds, allowing for up to 300
cartridges or disposable pens to be filled every minute. A dual
injection system is heated up to 125°C, making the machine capable
of handling the thickest of oils. With a growing market presence
and consumer demand, Convectium expects its revenue will increase
150 percent in 2017 compared to the year prior.
SinglePoint also owns and runs the www.SingleSeed.com web
portal, a go-to resource for dispensaries looking to obtain
state-of-the-art equipment. The website offers a variety of
solutions that cannabis companies can use to grow their own
businesses, as well as a thriving blog and online community
forum.
The thriving cannabis industry is also benefitting The
Scotts Miracle-Gro Company (SMG). In its
better-than-expected 1Q results announced in January, the company
noted strength in consumer demand, which played out particularly
well in its hydroponics business. U.S. consumer sales for the first
quarter increased 11 percent to $126 million.
“Hawthorne had a solid quarter too, benefiting from both organic
unit growth, as well as continued M&A activity. And as most of
you know, the marketplace continues to expand for Hawthorne as more
states change their laws to authorize cannabis growing. These and
other tailwinds leave the brands we've acquired well-positioned for
continued success. … since the birth of Hawthorne, we've become
even more encouraged by the growth opportunities that exist in
hydroponics. The acquisition in the past 24 months of three of the
most important brands in hydroponic growing presents new
opportunities for us and our shareholders,” company CEO Jim
Hagedorn said in an earnings call (2) transcribed by
Seeking Alpha. Based on growth in its core U.S. business and
“continued momentum” from Hawthorne’s hydroponic portfolio, Scotts
said it expects EPS for fiscal 2017 between $4.10 and $4.30 on
sales growth of 6-7 percent.
General Cannabis (CANN) has reported a surge in
business too. For Q4 2016, the company reported 69 percent
year-over-year revenue growth and noted that legalized recreational
use of marijuana provides the company “tremendous opportunity” for
significant expansion in 2017. General Cannabis said (http://nnw.fm/l8xhZ) it is exploring acquisition
opportunities in “all areas of regulated cannabis” and plans on
launching a marketing and advertising agency focused on the
marijuana industry. The company has financing, security, real
estate, distribution and consulting divisions, in addition to a
focus on the production and retail sides of the business.
Cannabis agriculture company Terra Tech (TRTC)
has zeroed in on the medical markets, and it reported total revenue
in 2016 of more than $25 million, up 154 percent over 2015. The
company specializes in sales and marketing of hydroponic equipment,
and it sells locally grown hydroponic produce, herbs and floral
products through its Edible Garden subsidiary. This co-op of
farmers across the U.S. is growing rapidly, and each farmer grows,
packs and ships their hydroponic, non-GMO produce to supermarkets
around the country. In addition, several other Terra Tech
subsidiaries operate medical marijuana cultivation, production and
dispensary facilities in Nevada.
Kush Bottles (KSHB) has also seen its
packaging, supplies, and accessories business boom. The company
plans to move its headquarters to Garden Grove, California, on July
1, 2017, to a warehouse that is quadruple the size of its previous
building. Responding to a growing customer base, Kush Bottles plans
to add new services, which will be supported by the expanded floor
space that will be available. Serving mostly the
business-to-business market, Kush Bottles currently has over 3,000
customers (including dispensaries, growers, and manufacturers) in
the U.S. and Canada. Like many others investing in the marijuana
industry, the company is not directly involved with cannabis plants
or extracts sought by end users.
While many states permit the production, distribution, sale and
use of marijuana and related products, cannabis is still illegal
per federal law. Even state-legal marijuana businesses may be the
subject of federal crack downs, and many fear the Drug Enforcement
Administration may act against them at any time.
However, as the marijuana industry grows with mounting public
support, companies like SinglePoint are seeing new investment
opportunities and increasing revenue. The influencing factors are
not only coming from the American public, but other countries as
well. Canada, for example, is quickly moving toward nationwide
legalization of recreational marijuana (3) – the success
of which would make it the second country to do so after Uruguay.
The move could influence the U.S. federal government’s position on
cannabis. The legalization of medical and recreational marijuana is
opening the door for new business and investment opportunities on
many different fronts – for both businesses and investors.
Editorial Sources:
(1) General Social Survey: http://nnw.fm/fFV9M
(2) Seeking Alpha: http://nnw.fm/hO0XJ
(3) Time: http://nnw.fm/Yo7RR
For more information on Singlepoint please visit: Singlepoint,
Inc. (SING) or www.SinglePoint.com
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