Tax Revenues Grow in Legal Cannabis Market

The states that have legalized cannabis products have seen a significant increase in tax revenues. A recent report by New Frontier Data, estimates that the legal cannabis market is expected to generate approximately $655 million in state taxes on retail sales in 2017.

This is a much higher tax revenue than what is generated by the alcohol industry. By 2020, tax revenues from cannabis will grow to $1.8 billion, of which $1.4 billion will be from cannabis-specific taxes. If to include medical sales in those numbers that would bring the total to $745 million for 2017 and $2.3 billion by 2020. SinglePoint, Inc. (OTC: SING), GB Sciences, Inc. (OTC: GBLX), CV Sciences, Inc. (OTC: CVSI), MCig Inc. (OTC: MCIG), Mountain High Acquisitions Corp. (OTC: MYHI).

“During this tough economy, states are looking for any way to close their budget shortfalls and it appears that cannabis may hold an answer for them. New Frontier Data looked at the potential revenues that could be generated from state cannabis taxes and found that in this year alone, states could raise nearly $750 million and triple that number by 2020. These revenues will have a meaningful impact on state programs and provide governors with much needed breathing room in their budgets,” stated by New Frontier Data CEO, Giadha Aguirre De Carcer.

SinglePoint, Inc. (OTC: SING) is a holding company specialized in the acquisition of small to mid-sized companies. On March 14th the company announced that it has closed its first round of funding to acquire a portion of Jacksam Corp., dba Convectium, the developer of a unique oil filling system poised to revolutionize the cannabis market. Convectium projects full-year 2017 sales of $3.5 million, a triple-digit increase over the year prior. The acquisition represents the first of many strategic investments SinglePoint intends to make to diversify its revenue streams in the multi-billion dollar cannabis industry.

As previously announced, SinglePoint will invest a stock and cash consideration totaling $800,000 to help fund the growth of Convectium and the marketing of its revolutionary 710Shark and 710Seal system. Developed by Convectium, the system is capable of filling and packaging more than 100 cartridges or disposable vape pens in 30 seconds, making it the fastest and only filling and sealing system of its kind. Convectium also offers a line of B2C products which SinglePoint will sell online through its SingleSeed.com subsidiary.

Driven by increasing product demand and brand visibility, Convectium projects full-year 2017 revenues of $3.5 million, an increase of 150% compared to revenue of $1.4 million for full-year 2016. The company is on track to achieve this goal, as sales for the first quarter of 2017 have already significantly surpassed first-quarter sales in 2016.

“We have evaluated numerous investment prospects in the cannabis space, and found there is nothing that compares to this opportunity we have with Convectium,” states SinglePoint CEO, Greg Lambrecht. “With this transaction, we will acquire a stake in a cannabis business that never touches a marijuana plant. This is the strategy we will use as we move forward to hedge us against changing federal and state laws.”