Marijuana Market Offers Variety of Investment Options and Consistent, Long-Lasting Growth Potential
April 05 2017 - 8:30AM
InvestorWire
New York, New York (NetworkNewsWire) – With the North American
cannabis market boasting an estimated worth of $7.2 billion in
2016, and new reports projecting CAGR of between 17 percent and 25
percent within the next few years, it's certainly an exciting time
to invest in the marijuana market. Investment opportunities are
abundant and diverse with companies like SinglePoint, Inc.
(SING) (SING
Profile), Innovative Industrial Properties
Inc. (IIPR), Insys Therapeutics Inc.
(INSY), MassRoots Inc. (MSRT) and
Axim Biotechnologies Inc. (AXIM).
The marijuana market is on fire for more reasons than one.
First, there's the huge potential for financial growth. A recent
report from New Frontier Data estimates that medical marijuana
sales in the United States will increase to $13.3 billion in 2020,
and adult recreational marijuana sales are projected to grow to
$11.2 billion by the same year. Then, there is the potential for
massive job-creation. The same New Frontier Data report estimates
that over a quarter of a million jobs will be created within the
legal marijuana market by 2020 (1).
A report from leading cannabis market research publisher Arcview
Market Research has compared the marijuana market's explosive
growth to the cable television boom of the 1990s and the broadband
Internet takeoff of the 2000s. Statements issued by Arcview predict
the legalization of marijuana in a significant number of countries
within the next decade-and-a-half, crediting the cannabis industry
with the most consistent and long-term growth potential the world
has ever seen (2).
The possibilities and opportunities are virtually endless within
the legalized marijuana market. The business plan of one innovative
company, SinglePoint
(SING), doesn't involve actual contact with marijuana
plants but rather focuses on providing services to the marijuana
industry.
For instance, through its SingleSeed subsidiary, SinglePoint is
positioned to offer payment solutions to the cannabis industry.
Mobile marketing and payment solutions offered through SingleSeed
include cashless ATM, Pay-by-Text™ and text message marketing.
While medical marijuana often takes center stage in discussions
pertaining to legalization, the power cord for any marijuana
business is the ability to conduct financial transactions in what –
for the time being – is largely an “unbankable” industry.
SinglePoint CEO Greg Lambrecht in a recent Forbes article
(3) highlighted the possibility of change under the
Trump Administration.
"The current administration has made it very clear they would
like to empower the states and Trump has even stated his belief in
how medical marijuana can help people. We believe the
administration will stick to their word on empowering the states.
In Phoenix we have many medical shops, none of which have relayed
to us that they are being impacted yet by the administration. The
biggest impact the current administration can have in favor of
cannabis in the near term would be to give guidelines on how this
business can be banked," stated Lambrecht.
Meanwhile, the SingleSeed.com website is a prime resource for
marijuana dispensaries that are seeking merchant payment processing
solutions and other business tools.
SinglePoint also
recently acquired an interest in the California-based Convectium, a
profitable provider of equipment, branding and packaging solutions
for the cannabis industry. Convectium is the developer of the
first-ever cartridge and vape pen oil filling machines created for
wholesale distribution to marijuana dispensaries. The company's
710Shark and 710Seal machines are able to fill and package more
than 100 cartridges or disposable vape pens in 30 seconds. These
machines are sold to dispensaries through the EquipCanna.com brand.
Convectium further operates a consumer brand that includes
BlackoutX and HazeSticks and reaches customers in more than 52
countries.
This diversified, “hands-off” approach shields SinglePoint
against any legal repercussions, should the federal government
surprise with a clampdown on the marijuana industry.
“There’s no reason why they would ever come after us. We provide
all of the products these dispensaries need to do business, but we
don’t touch the plant,” Lambrecht told The Hill (4).
Another company geared up to capitalized on the legalized
marijuana boom, also without touching the plant, is
Innovative Industrial Properties Inc. (IIPR). IIPR
specializes in acquiring freestanding properties that are used for
cultivating licensed medical marijuana and that are operated by
state-licensed growers. Once acquired, these properties are leased
back to the growers under long-term, net lease agreements. This
acquisition strategy acts as a source of capital to these growers.
When they sell their real estate locations to IIPR and then lease
them back from the company, the growers have an opportunity to
redeploy those proceeds into their core operations, thereby
yielding a higher return than they would get from owning their real
estate.
Also tapping into the cannabis market in an outside-the-box way
is MassRoots Inc. (MSRT). MassRoots is a leading
technology platform for the marijuana industry. The registered
users – currently numbered at over 1 million - can rate cannabis
products and strains according to their effectiveness. MassRoots
then offers this information in simple-to-use formats to help
consumers make informed purchasing decisions at their local
marijuana dispensaries.
Cashing in on the medical applications of legalized marijuana is
Insys Therapeutics Inc. (INSY). This specialty
pharmaceutical company is focused on addressing the clinical
inadequacies of existing commercial products through its
proprietary sublingual spray technology and its pharmaceutical
cannabinoids development capability. Insys is currently marketing
two products. The first is Subsys, which is a sublingual Fentanyl
spray for breakthrough cancer pain; the second is a generic version
of Dronabinol (THC) capsules.
Axim Biotechnologies Inc. (AXIM) is also taking
a medical approach in the cannabis market, focusing on researching,
developing and producing cannabinoid-based pharmaceuticals and
supplements. Axim owns the patent for using chewing gum as a
cannabinoid delivery method and has developed two chewing gum-based
products. The company's cannabidiol (CBD)-only Canchew gum is being
marketed as a dietary supplement. AXIM will also soon commence
phase 3 clinical trials for the combination CBD/THC gum MedChew RX,
which is used to treat pain and spasticity associated with multiple
sclerosis.
As the marijuana industry blazes forward, it's clear that
opportunities and applications in the cannabis market are
plentiful. Innovative companies like SinglePoint.com and others
mentioned offer prime investment opportunities for those looking to
capitalize in the rapidly growing marijuana field.
Editorial Sources:
(1) Forbes: http://nnw.fm/N283c
(2) Business Insider: http://nnw.fm/yJan6
(3) Forbes: http://nnw.fm/AYj12
(4) The Hill: http://nnw.fm/R7A9h
For more information on Singlepoint visit: Singlepoint,
Inc. (SING) or www.SinglePoint.com
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