One of the fastest growing industries in the United States in recent years, the legal marijuana market remains a highly attractive prospect for both entrepreneurs and investors, despite facing uncertain times as a consequence of the new administration’s position on cannabis use. Investors are actually expected to increase their investments this year, determined to push the market toward further growth. A recent GreenWave Advisors report notes that the industry will continue this trend even if the current administration will actively challenge it (http://dtn.fm/h7Pmr). Arizona-based holding company SinglePoint, Inc. (OTC: SING) is riding atop the marijuana investing wave, having recently completed yet another major acquisition that will solidify and expand its reach on the market.
The current state of the legal marijuana industry was discussed in depth at Marijuana Business Daily’s Conference and Expo earlier this month, with most investors, analysts and startups in the market admitting concern over the future, given the authorities’ position on the matter. President Donald Trump and other high-ranking officials have repeatedly talked about cracking down on the marijuana market, since the substance is still illegal at federal level. Marijuana use is however legal one way or another in at least 29 states, and stricter enforcement at central level would interfere with states’ individual legislation. No official position or measures have been announced yet.
While some expo participants were concerned they might see fewer investors coming to the market, most industry research points to a very likely increase in overall investments this year. The average investor is expected to invest roughly $500,000 in marijuana businesses this year, up from last year’s $450,000. Additionally, research indicates that legal marijuana retail sales will continue to grow, reaching $7.7 billion this year, according to GreenWave Advisors. The market is likely to top $30 billion by 2021, if medical and recreational marijuana is legalized all across the country. And even if the current administration takes on a more active stance against marijuana legalization, the market is still expected to reach $18 billion by 2021. Marijuana Business Daily research projects a more moderate, but still substantial revenue: $6.1 billion in retail sales for this year.
California alone could account for 40 percent of the market, the GreenWave Advisors research shows. The Golden State is turning into a hotspot for marijuana investments and businesses, as it moves to completely legalize recreational use next year. SinglePoint has already entered the Californian marijuana market following its latest acquisition. By acquiring 90 percent of Discount Indoor Garden Supply (DIGS), the company positions itself as a leader in marijuana consulting, equipment, retail stores and online products. The acquisition gives SinglePoint access to DIGS’s two brick-and-mortar stores and online shop, as well as to a third store likely to open in the near future. This investment not only demonstrates SinglePoint’s ability to grow its investment portfolio strategically, but also provides the company with a new and consistent source of revenues to help fund future acquisitions.
The DIGS investment follows another major strategic acquisition for SinglePoint: that of Convectium, the manufacturer and distributor of an innovative equipment and packaging solution in the cannabis industry. Convectium’s unique cartridge and vape pen filling machines is revolutionizing the traditional, manual cartridge filling method, as it can fill more than 100 cartridges in 30 seconds.
SinglePoint also has a strong presence on the marijuana payment solutions market via its subsidiary SingleSeed. A provider of various state-of-the-art non-cash payment and marketing tools for the medical and retail marijuana market, SingleSeed’s declared goal is to help businesses on the market thrive, while also helping to legitimize the industry and educating customers and business owners on key issues in the market.
For more information visit the company’s website at www.SinglePoint.com
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