When we last reported on Singlepoint, Inc. (OTCMKTS: SING) a couple of weeks ago, we were mentioning that one of the reasons we were keen on the company was its diviersification and the fact that it is attempting to make its mark on the two trendiest market spaces. Cannabis and Cryptocurrency.
We’re now learning of what could be a key step toward furthering the company’s interests in its quest for cannabis sector success.
Singlepoint, Inc. (OTCMKTS: SING) has signed a Letter of Intent (LOI) to acquire Dr. FeelGood, an already profitable Phoenix-based medical marijuana distribution company with plans to develop a proprietary delivery and ordering technology. Per the LOI, SinglePoint will acquire 51% of the company in a combination of cash and stock. The acquisition will add an additional revenue stream to SinglePoint, solidifying the company’s acquisition-based revenue strategy.
SinglePoint anticipates it will quickly close this acquisition, demonstrating its ability to grow its portfolio of investments in established high-growth, high-potential cannabis businesses. SinglePoint successfully acquired two companies earlier this year, and expects that the acquisition of Dr. FeelGood will be a highly successfully addition to its portfolio.
“This acquisition is right in our wheel house. I previously took a distribution company public on the NASDAQ and believe with my experience in distribution we can grow this company quickly. The acquisition of Dr. FeelGood will be the third acquisition of the year. Through the acquisition of DIGS Hydro and Convectium, SinglePoints revenue has increased 378 percent compared to the first quarter of 2017. SinglePoint is in a better position than it has ever been before. We are looking at additional companies and plan to complete additional acquisitions prior to the end of the year. We are well capitalized to continue acquisitions and we are optimistic to complete around three more acquisitions and significantly increase the company’s revenue,” says SinglePoint CEO Greg Lambrecht.
Dr. FeelGood has a wide variety of products that are distributed to both businesses and consumers. Owners Scott Riley and Jeff Clevenger have over 30 years of experience in building and scaling businesses, including running a cannabis distribution business. Riley and Clevenger will continue to run day-to-day operations of Dr. FeelGood and assist with plans to expand the business and license the brand in additional states.
SinglePoint and Dr. FeelGood will first focus on the development of a delivery platform utilizing SinglePoint’s location-based delivery application. Additional features, such as a directory and ordering system to directly compete with Leafly and WeedMaps, will then be implemented to cement the technology’s position in the market. Dr. FeelGood has existing plans to build the app, and expects that a collaboration with SinglePoint will help the company utilize the app sooner-than-expected to meet existing and growing interest.
SinglePoint continues to establish its portfolio in the cannabis sector, well-paced with broader industry growth. A report by the Cannabist (2016) shows that the cannabis industry will report a steady growth pattern in the coming decade. Based on the research, by 2025 the cannabis market will be worth over $20 billion, more than double its current estimate. Based on data from the New Frontier (2014), the legal cannabis market enjoys a compound annual growth of 29%. (Source: Marketwired)
We are very interested to continue tracking SING’s progress in the cannabis and cryptocurrency arenas, especially with respect to how the company plans to blend the two worlds together. It’s a story that seems to be unique to this stock. Stay locked to Street Register for updates, and we’ll deliver important developments on SING as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in SING stock, short or long.