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.
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