SinglePoint Completes Acquisition of Dr. FeelGood, a Profitable Cannabis Distribution Company
SEATTLE, WA -- (Marketwired) -- 09/06/17 -- SinglePoint, Inc. (OTC: SING) announces the acquisition of Dr. FeelGood, a profitable cannabis distribution company headquartered in Phoenix, Arizona. Dr. FeelGood is a leading distribution company with expansion plans to add proprietary delivery and ordering technology application. Per the agreement terms, SinglePoint will acquire fifty-one percent (51%) of the company in a combination of cash and stock, which will allow SinglePoint to recognize all revenue. The acquisition will add an additional revenue stream to SinglePoint, solidifying the company's revenue-by-acquisition strategy.
Dr. FeelGood represents the third acquisition of the year for SinglePoint. This move provides SinglePoint with additional revenue, as well as team members that have been actively working in the cannabis industry for many years. The founders of Dr. FeelGood have established a plan to develop a proprietary mobile application that will enhance the user experience and streamline the company's operations. The companies look to release this app in the next 90 days; once completed they will be able to license this technology to other distribution companies all over the United States.
As SinglePoint continues to grow its portfolio in the cannabis industry, the broader marijuana market continues to grow as well. 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, the market will be worth over $20 billion by 2025, 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%.
SinglePoint CEO Greg Lambrecht states, "We are very excited for the success of this acquisition. The acquisition of Dr. FeelGood is the third acquisition of the year. SinglePoint's revenue has dramatically increased, which through the acquisition of DIGS Hydro and Convectium has increased 378x compared to the first quarter of 2017. SinglePoint is in a better position than it has ever been before. We are well capitalized to continue acquisitions and we are optimistic to complete additional acquisitions and very optimistic to significantly increase the company revenue."
Dr. FeelGood has a wide variety of products that are distributed both B2B and B2C. Owners Scott Riley and Jeff Clevenger have over 30 years of experience in building and scaling businesses, including the last six years running a cannabis distribution business. The two will continue to run day-to-day operations of Dr. FeelGood with plans to expand the business and license the brand in additional states. The acquisition offer comes at a time when the industry is rapidly expanding. In fact, reports suggest that the marijuana market in the United States is growing faster than the smartphone and the tablet industry (PR News, 2017). As the market continues to expand weekly, Dr. FeelGood has a positive looking future. According to Forbes (2016), polls show that more Americans are in support for the legalizing of marijuana as it becomes continually popular for both recreation and medical reasons.
"This is a big moment for Dr. FeelGood. We know we can grow this business and with the capital and support of SinglePoint this growth will happen quicker. The introductions they have put together already are immensely positive for us and once solidified will exponentially increase our footprint in the market," states Scott Riley of Dr. FeeGood
Simultaneously, SinglePoint and Dr. FeelGood are collaborating on a delivery platform. SinglePoint will utilize its location-based delivery application and add additional features such as a directory and ordering system to directly compete with Leafly and WeedMaps. Dr. FeelGood already had plans to build the app and with SinglePoint's head start, the company will be able to utilize the app much sooner and supply to parties that have already expressed interest.
About the Company
SinglePoint, Inc. (SING) has grown from a full-service mobile technology provider to a publicly traded holding company. Through diversification into horizontal markets, SinglePoint is building its portfolio by acquiring an interest in undervalued subsidiaries, thereby providing a rich, diversified holding base. Through its subsidiary company SingleSeed the company is providing products and services to the cannabis industry.
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Technical complications, which may arise, could prevent the prompt implementation of any strategically significant plan(s) outlined above. The Company undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
Source: SinglePoint, Inc.
Released September 6, 2017