The
#MJBizCon Canna Buzz for #Cannabis #Stocks - (OTCQB: $SING) (OTC: $KSHB), (NYSE: $ACB) (TSX: $ACB.TO) (CSE: $TRUL.C) (OTC: $TCNNF)
Exhibitor
SinglePoint Inc. to Showcase Smokable Hemp - one of the fastest growing
segments in the industry
Point
Roberts WA, Delta, BC – December 5, 2019 - Investorideas.com, a leading
investor news resource covering cannabis and hemp stocks releases a special
report looking at the upcoming MJBizCon event in Las Vegas,
December 11th-13 and some of the many attending industry leaders and exhibitors
expectations, including SinglePoint Inc.
(OTCQB:
SING), KushCo
Holdings, Inc. (OTC:
KSHB), Aurora
Cannabis Inc. (NYSE:
ACB)
(TSX:
ACB)
and Trulieve Cannabis Corp. (CSE:
TRUL) (OTC:
TCNNF).
MJBizCon
is an annual three-day event where cannabis industry professionals network,
listen to premier keynote speakers and explore the more than 150 exhibiting
businesses. The event brings together many top-level individuals and businesses
that are working to advance the cannabis industry while also increasing its
visibility on a global scale.
Read this in full
at https://www.investorideas.com/news/2019/cannabis/12051MJBizConCannaBuzz.asp
When
asked about how this year's event has evolved to differ from last year, Tess
Woods from the MJBiz Team commented, “Each year we produce MJBizCon, it is
important for us to highlight the advancements the industry has made. This
year, we are launching the Investor Intelligence Conference and the MJBizDaily
Awards. For the first time, we will also surpass 35,000 attendees from more
than 70 countries.”
Woods
also commented on the noticed trends and industry trajectory saying, “It’s
clear if you look at market data and consumer behavior in medicinal and adult
use markets that the industry has only begun to develop here in the United
States and the globe. Our annual Marijuana Business Industry Factbook recently
projected the enormous YOY growth rates for the next five years. I have no reason to believe those types of
curves won’t continue to be seen far into the future.”
While
the industry may have suffered somewhat from negative press and underwhelming
financials, companies, investors and conference attendees have renewed optimism
in the industry looking to 2020.
SinglePoint
Inc.
(OTCQB:
SING) President Wil Ralston, one of the industry exhibitors
said, "We are
extremely bullish on the sale of our pre-rolled hemp. We are currently selling our
1606hemp.com and have
completed our first large purchase from a distributor. Smokable hemp is one of
the fastest growing segments in the industry and we are at the forefront of it.
Being federally legal through the passing of the 2018 Farm Bill, we are able to
ship nationwide through distributors, direct to store and direct to
consumer."
SinglePoint
recently
released a recap of their successful 2019 and a look ahead to
2020 as the company comes off its largest 3rd quarter in history, exceeding
$1,000,000 in revenue for the quarter. The company continues to see expanded
growth in two major markets, Hemp and Solar and throughout Q4 and into 2020,
SinglePoint will focus on growing these two market segments as demand increases
for both. SinglePoint recently launched 1606 hemp which will have its major
debut at the December 11-13, 2019 MJBIZCON where thousands will converge at the
Las Vegas Convention Center to see the latest products in the industry.
SinglePoint expects the sale of 1606 to be a large contributor in 2020 to
overall company growth.
“We
are excited for the launch of our 1606 Original Pre-rolled Hemp. We believe we
can quickly scale the sales of this product via ecommerce and retail buyers.
The Hemp Pre-rolls have a major profit margin which will support continued
organic growth,” states Wil Ralston, President of SinglePoint.
1606
Original Hemp cigarettes are nicotine and tobacco free. Some research suggests
that smoking hemp cigarettes could be a potential tool to replace tobacco and
nicotine addictions.
According
to a Brightfield Group survey of more than 5,000 CBD users in the US:
· 24% have used it to help quit smoking.
· Quitters are often replacing cigarettes
with either smokable hemp or vaping.
· 41% of quitters have entirely replaced
traditional smoking with hemp CBD.
According
to a June 2019 market research report published by MarketsandMarkets™, the
industrial hemp market is projected to grow from $4.6 billion in 2019 to $26.6
billion by 2025, recording a compound annual growth rate of 34.0% during the
forecast period. The CBD market is on track to grow to $23.7 billion through
2023, according to Brightfield Group. The firm also estimated the smokable hemp
market to be valued at $11.5 million in 2018, a growth of 250% from 2017.
“We
have an exceptional strategic plan in making SinglePoint one of the biggest
publicly traded companies in the Smokable hemp space. We believe we offer
investors and our current shareholders tremendous value given our leadership
position in several explosive markets including ecommerce, Hemp and Solar. As
SinglePoint continues to grow revenue and profit we continue to strive for
meeting the qualifications to apply for a listed exchange,” states Greg
Lambrecht, SinglePoint CEO.
SinglePoint
predicts growth in its markets will continue. Support for legalization passed
recently when lawmakers in the House Judiciary Committee approved a Bill that
stands to decriminalize marijuana at the federal level. The Marijuana
Opportunity Reinvestment and Expungement Act of 2019 (the “MORE Act”) passed by
a wide margin with bipartisan support. This bill will now head to Senate; this
is just the first of many steps but as support continues, SinglePoint believes
it will only continue to open up options for businesses to obtain legal payment
processing accounts. SinglePoint is currently growing its portfolio of accounts
and as soon as the company believes there is a viable, stable payments option
it will be able to onboard additional clients.
As
SinglePoint’s Hemp business continues to blossom, Direct Solar of America
drives additional expansion. Direct Solar, a subsidiary of SinglePoint Inc.
(SING), a leading residential and commercial solar brokerage, continues to
exceed revenue growth targets and has been pivotal to improving the Company’s
financials.
Direct
Solar of America is filling a gap in the solar market by providing homeowners
the knowledge and comfort throughout the solar purchasing cycle. There are many
complexities when it comes to the purchases including tax credits, leasing vs.
buying, installers among other decisions to make. Direct Solar separates itself
by becoming experts in the intricacies of solar in each market. Direct Solar
has surpassed over $900,000 in revenue in just six months of operations.
KushCo
Holdings, Inc. (OTC:
KSHB), the premier producer of ancillary products and
services to the legal cannabis and CBD industries, will also be exhibiting at
MJBizCon after having recently reported
its
financial results for its fiscal fourth quarter and full year ended August 31,
2019.
For the Fourth
Quarter the company saw a net revenue increased 135% year-over-year to $47.0
million, a gross profit was 20.1%, compared to 18.1% in the prior year period
on a GAAP basis and, excluding the impact of certain non-recurring items, gross
profit was approximately 22.1% on a Non-GAAP basis.
For the Full Year
the company saw a net revenue increased 186% year-over-year to a record $149.0
million, enabling the Company to achieve its previously issued guidance of
between $145.0 million and $150.0 million, a gross profit was 16.5%, compared
to 25.6% in the prior year on a GAAP basis and excluding the impact of certain
non-recurring items, gross profit was approximately 21.3% on a Non-GAAP basis.
Some of the
company’s recent operational highlights included significantly expanded CBD footprint with
launch of new hemp trading business, named Sentia Wellness as first CBD brand
partner under new Retail Services division, completed $30.1 million
registered direct offering, providing additional capital to
execute on the Company's growth strategy and help achieve positive adjusted
EBITDA and entered
exclusive distribution agreement with global
anti-counterfeiting and authentication solutions provider De La Rue to
authenticate products throughout the supply chain.
Nick Kovacevich,
Co-founder, Chairman and Chief Executive Officer, commented: "Since we
became a public company in 2016, we have more than doubled our annual revenue
in each of the last four fiscal years, with revenue for fiscal 2019 increasing
186% year-over-year to a record $149.0 million, helping us achieve our guidance
of between $145 million and $150 million in revenue. Substantially all of this
robust growth was organic, driven primarily by our continued success in
penetrating both new and existing markets and cross-selling deeper into our
6,000+ strong customer base with our significantly expanded offerings. Perhaps more
importantly, we have supplemented this solid topline growth with increasing
margins, as we have driven further improvements and efficiencies in our
business. In fact, our gross margins have been increasing every quarter since
we started fiscal 2019 from 13% in fiscal Q1 to 20% in fiscal Q4. Given that we
are continuing to gain scale and efficiency in our core business, while
launching and ramping up higher-margin service offerings, we expect to see
continued gross margin enhancement in the near future.
"Over the past
couple of months, KushCo and the entire regulated cannabis industry has been
dealing with a vaping crisis that increasingly appears to be connected to
counterfeited, adulterated, and untested vape products being sold in the black
market, which we do not service. While we have been seeing a slight pullback in
sales for the overall vape market, it's important to note that we service the
entire regulated cannabis and CBD sector, and as a result, benefit from some
consumers potentially shifting to other form factors, such as flower, edibles
and pre-rolls. That being said, we believe there will be some topline softness
in the first half of fiscal 2020 related to vape, as our customers have been
more cautious with their spending and have been slowing down their vape
purchasing activity to limit any potential inventory or regulatory risk should
there be additional temporary state bans affecting vape product sales. Looking
out to the second half of fiscal 2020, we expect orders for vape products to pick
up again.
"Longer term,
we believe this crisis will drive more consumers from the illicit market to the
legal market and incentivize operators to upgrade to higher-quality, premium
and tested products-both drivers that should help our business. However, we
remain focused on gradually diversifying away from vape, which we have been
communicating and executing on for the past several quarters, especially with
the launch of newer and higher-margin initiatives, such as our retail services,
our custom branded anti-counterfeiting and authentication labels, and most
recently our hemp trading business. These offerings not only further diversify
our business, adding incremental defensibility and sustainability, but also
drive higher margins which help us achieve our primary goal of adjusted EBITDA
profitability in the second half of fiscal 2020.
"KushCo is one
of the few companies in the cannabis and CBD industries that has historically
been profitable, and we believe we can achieve this status again, only now at a
much higher level of scale, diversification, and customer and market
penetration. Our strategy of achieving adjusted EBITDA profitability is
centered around three main drivers: 1) continued topline growth in our core
business; 2) the successful ramp up of our newer and higher-margin initiatives;
and, 3) a healthy level of restructuring and cost-cutting to right-size the
business, enhance margins, and improve cash flow. Already, we have made
significant inroads across each profitability driver.
"Overall, fiscal
2019 was a major leap forward for KushCo, as we once again drove significant
topline growth, enhanced our margins, expanded our offerings, and further
penetrated our deep customer base. Now, with industry conditions becoming more
challenging, we have our sights set on further expanding the business, but
doing so in a more efficient and profitable manner. Our recent capital raise of
$30.1 million, along with our revolving credit facility with Monroe Capital for
up to $50 million, should give us enough sprint capacity to execute on this
strategy, achieve our goal of becoming financially self-sufficient, and put
ourselves in a much stronger position to power the global cannabis ecosystem.
We believe this will ultimately drive the highest returns for our shareholders."
Looking forward
KushCo expects annual net revenue for fiscal 2020 to be between $230 million
and $250 million. Included in this financial guidance is the Company's
expectation that net revenue from its newly launched hemp trading business will
total at least $25 million for the fiscal year.
Aurora Cannabis
Inc.
(NYSE:
ACB)
(TSX:
ACB)
who recently
opened its flagship retail store in The West Edmonton Mall,
the largest mall in North America, will also be exhibiting at MJBizCon this
year.
The
roughly 11,000-sq.-ft. Aurora’s flagship store will offer different products
and events. The retail cannabis store will offer “a safe, age-gated retail
experience in full compliance with all relevant federal and provincial
regulations,” according to a company statement.
Designed
by Bruce Mau Design and GMC Architects, the flagship store will host
world-class researchers, creators and culture makers to lead sessions with
artists, chefs, local innovators and experts in the emerging world of cannabis.
The cannabis store will offer visitors access to over 42 different cannabis
products from the Aurora family of brands.
“Aurora
is proud to call Edmonton home. It’s here where we established our roots and
built our business. There’s no better place for us to open the doors to our
flagship store and to welcome consumers from all over the world to join us in
celebrating how far the cannabis movement has come and how quickly it continues
to grow,” Aurora CEO, Terry Booth stated.
The
company also
recently announced that one of its oil products has obtained
approval for use under Ireland’s new Medical Cannabis Access Programme.
The
company’s high CBD Oil Drops have been added to a regulatory schedule by the
Irish Minister of Health, allowing the importation and prescribing of the oil. It's
one of two products to receive such an approval, Aurora said.
Ireland’s
Medical Cannabis Access Programme allows for a consultant to prescribe medical
cannabis to patients suffering from spasticity related to multiple sclerosis,
difficult nausea and vomiting connected to chemotherapy and severe refractory
epilepsy. The program was approved in June by Irish Minister of Health, Simon
Harris and is set to last for five years.
"Aurora
is pleased to be able to assist patients who are seeking treatment with high
quality EU-GMP (good manufacturing practice) certified pharmaceutical-grade
medical cannabis in Ireland,” Dr. Shane Morris, Aurora's Chief Product Officer,
said in a statement.
“We
are very proud to be one of the first approved suppliers of medical cannabis
under the MCAP. We want to acknowledge
the efforts made by many people, especially the patients and doctors who have
campaigned for access to these medicines."
Trulieve Cannabis
Corp.
(CSE:
TRUL) (OTC:
TCNNF), a leading and top-performing cannabis company in the
United States, will also be attending this year’s MJBIzCon after having recently
announced that CEO Kim Rivers was featured on a presenting panel
Multi-State Operators take on Medicinal Cannabis speaking with other leading
cannabis executives in the healthcare sector at Piper Jaffray's 31st
Annual Healthcare Conference on December 3rd, 2019.
Ms.
Rivers is scheduled to speak on the Licensing: Ins and Outs – Ensuring
Continued Compliance in a Changing Regulatory Landscape panel at the MJBiz
Conference at 10:30 a.m. PST on Thursday, December 12th, 2019 in Las
Vegas.
CEO Kim Rivers was
also recently
among the 50 most influential women to be recognized across
the cannabis industry at the High Times Female 50.
Trulieve Cannabis
Corp., like many of the other above listed exhibitors also released its
financial results for the third quarter of 2019 ended September 30, 2019.
"Our third
quarter results reflect our continued customer loyalty, growth, and leadership
position. Trulieve's strong brand, wide-ranging access to stores, and authentic
customer experience have resonated with our customers and patients,"
stated Kim Rivers, Trulieve CEO. "The third quarter was also successful in
further strengthening our position in our existing markets as well as preparing
for new market entry. We continue to build operational efficiencies and
financial discipline to ensure a solid foundation, cash reserves, and the right
tools at our disposal to expand our footprint. Looking ahead, this is an
exciting time as we execute on our strategic vision to be one of the top
performing cannabis companies in North America."
This year’s
MJBizCon kicks off next week on December 11th and it seems many of the
exhibitors are looking to use this event, filled with industry professionals
and investors, to help reinvigorate the industry and update the cannabis market
on their recent developments. Reflecting, 2019 may not have been all we
hoped for when looking at the hemp and cannabis sector but it seems 2020 is inciting
many companies to be optimistic as we start to see real revenue generation and
an improved regulatory environment.
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