SinglePoint, Inc. (OTC: SING), a mobile technology and marketing company, recently announced that it signed a letter of intent to acquire Drive Media Network LLC’s digital signage network. The move is designed to create immediate additional revenue from existing Drive Media contracts, while management projects over $1 million in net income from the business over the next five years.
“The acquisition of Drive Media will greatly expand our service offerings to our existing client base and help us gain a foothold in the medical marijuana industry,” said Greg Lambrecht, CEO of SinglePoint. “By offering cannabis dispensaries a full suite of marketing, advertising, payments, and other services, SinglePoint can help improve dispensaries’ business operations.”
The company plans to install Drive Media screens in medical and recreational cannabis dispensaries nationwide in order to educate customers and reduce excessive wait times of up to 45 minutes. Once the initial nationwide footprint is established, the company plans to generate revenue through both screen sales and advertising revenues associated with the network.
“There are also some great synergies between our displays and SinglePoint’s mobile marketing and payment offerings, including providing viewers with an immediate response and payment mechanism for the ads they view,” added Ronald Gross, CEO of Drive Media Networks. “We’re really excited by SinglePoint’s vision to leverage our digital display expertise for the as-yet-untapped medical marijuana industry.”
In 2013, SinglePoint reported $1.6 million in revenue driven by additional clients and workflow, expansion of brand recognition, and formation of valuable strategic partnerships. Management believes that the company could become debt-free by the end of the second quarter and be “well on its way to sustained profitability” after paying down and settling $100,000 in outstanding debt last year.
Shares of SinglePoint jumped 4.5% in early trading on greater than average volume.
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