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SinglePoint and Convectium: Investing in Cannabis Packaging Speed -- CFN Media

Newsfile Corp.

Seattle, Washington--(Newsfile Corp. - September 10, 2019) -  CFN Media Group ("CFN Media"), the leading agency and financial media network dedicated to the North American cannabis industry, announces the publication of an article covering the spread of technology throughout the cannabis value chain from growing to distribution and two companies in a prime position to capitalize.

The negative stigmas attached to cannabis continue to fade away like a puff of smoke in the wind. Most people are now well aware of the therapeutic benefits of the cannabis plant and its cousin hemp. Investors are certainly aware of the massive industry unfolding.

Against this backdrop, cannabis operations have moved from the back alley to the boardroom and innovation is thriving. The perfect storm of booming demand for product and operational efficiency has led to a proliferation of automated technology throughout the supply chain.

For JackSam Corp. (OTCQB: JKSM), which does business under the moniker Convectium, this is the perfect environment to continue roll-out of its disruptive automated solution suite that fills, caps and packages THC and CBD concentrates 60-times faster than antiquated manual methods that still dominate the market.

Click here to see the company investor presentation

For SinglePoint, Inc. (OTCQB: SING), a diversified holding firm with portfolio companies in cannabis, hemp, digital payments and solar, taking a piece of Convectium in 2017 was an investment that keeps on giving. In March 2017, SinglePoint made an $800,000 cash-and-stock investment for 10% of then-privately held Convectium.

Click here to see the company corporate presentation

SinglePoint still holds 6.0% of JKSM outstanding stock.

The Biggest Thing Since the Dotcom Boom

Vilified for decades, cannabis is now being trumpeted as a serious medical breakthrough.

Cannabis cannabinoids can be found in more than 1,000 products, ranging from edibles to beverages to pet products to skin creams. These cannabinoids generally consist of CBD (cannabidiol), a non-intoxicating component of cannabis and hemp, and THC (tetrahydrocannabinol), the part of cannabis responsible for the psychoactive "high" often associated with marijuana.

The world is recognizing the medical benefits (and lack of side effects) of CBD. Hemp, which became legal across the U.S. at the start of 2019 through the passage of the Farm Bill, is defined as cannabis sativa containing less than 0.3% THC. In January 2018, the World Doping Agency removed CBD from its banned substance list, further validating its efficacy and safety.

33 U.S. states have legalized cannabis for medical uses, while 10 states and Washington, D.C. allow recreational uses. Last October, Canada legalized marijuana for all adults but products have been limited. Modified legislation will open the Canadian markets to a variety of new cannabis products, including extracts. That means that about 260 million people in North America has access to cannabis in one form or another.

To that end, it's no surprise that the industry experts at Arcview Market Research and BDS Analytics are calling for the legal cannabis market in the U.S. alone to reach $22.2 billion in 2022.

Leading the growth is concentrates, which, according to the BDS's GreenEdge have experienced 22.1% compound annual growth across 2014-2018 to now make up one-third of the total cannabis market. A deeper dive shows the cannabis oil market segment is surging, forecast to grow at a stunning 46.9% CAGR from 2019-2025 to reach $2.16 billion.

Running Circles Around Competition

Convectium is the inventor of the world's first cannabis oil filling system and proprietary packaging systems. This is a major advancement at a time when about 80% of all concentrate products (vapes and pods) are filled manually. By hand, oil cartridge fills are completed at a paltry 75 per hour. Convectium's 710 Shark system can exceed that in less than a minute on its way to produce between 6,000-12,000 in an hour.

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Figure 1: Convectium's 710 Shark system.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/5503/47679_0ff9aef8b428ca85_001full.jpg

As the image shows, none of the limited amount of competition even comes close to the speed or diversity of the 710 Shark. When the 710 Captain and 710 Seal are added to the assembly line, the processes of "rack, fill, cap and pack" that all concentrates go through are completed by Convectium products with dramatically improve speed, while reducing waste by as much as 42%.

"Where else can one person do 6,000 cartridges, including filling and putting into blister packs, in one hour? The answer is 'nowhere'," commented SinglePoint CEO Greg Lambrecht in a phone conversation with CFN Media. "We were confident in the investment in Convectium 2-1/2 years ago and are greatly looking forward to the coming years under their new business model," he added.

Lambrecht was referring to Convectium recently switching from a "closed system" to an "open source" business model. This is a savvy move by Convectium to make its vape, pod and cartridge trays and equipment compatible with components produced by the majority of leading global manufacturers. For the first time, cannabis brands and co-packers can add the 710 line to existing filling operations, greatly improving efficiency and the bottom line.

Built in the U.S.A. with UL certification, Convectium is prepping for extracts becoming legal in Canada early in 2020 by making the machines CUL certified as well.

Charged with spearheading a sales push under the new strategy, cannabis industry veteran David Hall was brought on as Executive VP of Sales at Convectium.

Strength in Numbers

With over 100 customers using Convectium products, the brand has built a market presence. As the industry gets ready to experience exponential growth, Convectium leadership is taking a more aggressive approach at an opportune time. Late in July, the company penned a distribution agreement with MainStem, a leading marketplace for ancillary cannabis products and centralized purchasing. Mainstem's online platform offers over 10,000 products and cutting-edge e-procurement functionality as it re-shapes the industry standard for how business-to-business purchasing is done in the cannabis industry.

Click here to see the company investor presentation

Further, SinglePoint is much more than just a leading shareholder in Convectium. SinglePoint's family of companies all have synergies with each other. To that end, SinglePoint is building its own footprint in the private label market and will use Convectium products for its clients, as well as making referrals to drive more business to Convectium. It also owns SingleSeed, an e-commerce portal selling hemp-derived CBD products.

Click here to see the company corporate presentation

"[We] recently received sample vape pens from the company and have already received lots of interest, and an order" commented SinglePoint President Wil Ralston, succinctly adding, "The cutting-edge technology allows us to provide superior products to clients."

A Prescient Decision

A couple years ago, Wall Street was bearish on legal cannabis, shaken by uncertainty about where the market was heading against the backdrop of prohibition at the federal level. SinglePoint got ahead of the curve, seeing Convectium's vision for automation as the future of industry. Turns out they were both right, seizing the opportunity as technology now has spread throughout the entire cannabis value chain from growing to distribution. Still, no one does it as fast or as efficiently as Convectium.

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Disclaimer

The above article is sponsored content. Accelerize Inc., which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation:http://www.cannabisfn.com/legal-disclaimer/

Contact

SinglePoint Inc.

Corporate Communication

SinglePoint Inc.

855-711-2009

investors@SinglePoint.com

SinglePoint.com

Investor Contact:

Clay Chase/Torrey Hills Capital

858 456-7300

cc@sdthc.com

Convectium Contact:

Mark Adams, CEO

(617) 877-6740

mark@convectium.com

CFN Media

Frank Lane

206-369-7050

flane@cannabisfn.com

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