It wasn’t long ago that “app” was a word only techies really understood. Then, Apple (NASDAQ: AAPL) made famous and trademarked “There’s An App For That™” and the world was set on its side with every company having an app or risking dwelling in technology’s Dark Ages. The evolution has not slowed; apps have a footprint in every industry and are starting to make pronounced impacts in cannabis and cryptocurrencies, two of the hottest emerging markets in the world today.
It’s not Apple, Microsoft (NASDAQ: MSFT) and other tech behemoths shaping the space. As so often happens, it’s small companies that are leading the way with innovation that paves the future. Upstarts like AppSwarm (OTCPK: SWRM) and SinglePoint (OTCQB: SING) are rallying together industry pioneers, tech successes and partners for the purpose of spearheading the app movement into cannabis and cryptocurrencies (along with its underlying blockchain technology).
It’s for good cause that these companies are banking their futures on their efforts now. With cannabis now legal in one form or another in more than 30 countries and 30 U.S. states, Arcview Market Research and its partner BDS Analytics forecast spending on marijuana will reach $57.0 billion by 2027. The market experts at App Annie called 2017 a “monumental year for the app economy,” reporting that global app downloads topped 175 billion, while consumer spending exceeded $86 billion. The analyst group foresees the app economy surging about 380% from 2016 to reach $6.3 trillion by 2021.
Indeed, there is a good reason companies are moving with a purpose to carve out market share in these lucrative fields.
The Backbone: AppSwarm Technology
A tech accelerator, AppSwarm specializes in developing and publishing mobile apps and software platforms for gaming and business, frequently partnering with other companies to assist in R&D, management and capital needs. Apropos, this puts the company squarely in the mobile gaming market Newzoo estimates will generate $46.1 billion this year in addition to its offerings in the cannabis and crypto markets. Addressing this market, AppSwarm hired Tammy McDonald to head its Media Play unit. McDonald is CEO of Axis Game Factory, where she has added to her impressive resume by selling more than 1.5 million units of combined software applications in its AGFPRO suite.
Further diversifying its portfolio, AppSwarm is also currently in discussions to possibly develop its own 5G mobile carrier service called Deep Sky Mobile through a partnership with AI VentureTech. As is the theme with AppSwarm, the venture is on the leading edge of technology, hypothesized to focus on advanced mobile solutions, such as tracking networks for driverless cars, drones, Internet of Things, Smart Homes and Cities and enterprise networking.
While potentially disruptive in the future, the company is building value today with the recent launch of the delivery and tracking app LastMile and the SingleCoin Digital Wallet. These product launches – in combination with the forward-looking 5G cloud development projects and mobile phone carrier – have resulted in Ludlow Research upwardly revising its valuation target on SWRM to a range of $0.07 - $0.10 per share. The company currently trades at just 1.5 cents per share with a market cap under $1.0 million, implying Ludlow sees an upside of 366.7% to the low end of its range.
The upgrade in valuation came before AppSwarm disclosed penning a memorandum of understanding to acquire a yet-anonymous IT solutions and software company with revenue and EBITDA in 2017 of $1.6 million and $650,000, respectively.
Moreover, it doesn’t include the recent joint venture agreement with KYN Capital Group (OTCPK: KYNC) subsidiary Algae World. Per the agreement, AppSwarm is building an e-commerce platform and mobile app, as well as marketing Algae World’s complete product line. This product bag include cannabidiol (CBD) infused water and soda, a topic that has been raging in popularity in recent months. CBD is a component of cannabis known to have medicinal benefits without any psychotropic effect (e.g. the “high” associated with marijuana).
It’s arguable that Wall Street has overlooked AppSwarm considering its partner on the LastMile Delivery Platform and the SingleCoin digital wallet, SinglePoint, carries a much higher valuation (although still arguably low) of approximately $31 million. As 50/50 partners on the two projects, the two companies have collaborated extensively to ensure their successes, with AppSwarm holding exclusive rights to the underlying technology for both apps.
As the name implies, LastMile Delivery is focused on the logistics of getting a product from a retailer to a customer’s home, a sticking point for many majors today, including Amazon (NASDAQ: AMZN), grocery chain Kroger (NYSE: K), Walmart (NYSE: WMT) and even Drone Delivery Canada (TSX-V: FLT) to better serve consumer demand.
The app covers the gamut of information pertaining to goods in transit, giving it utility for all parties involved. Companies can create products, inventory and orders for their customers. Dispatchers can receive, organize and schedule deliveries. Drivers can use the turn-by-turn navigation and track their list of upcoming assignments, while customers can get live information about the status of their order.
While this can have functionality across a broad spectrum of goods, the companies are making a concerted effort to utilize all their resources to get it in front of legal cannabis dispensaries and the public. SinglePoint and AppSwarm developed the SingleSeed platform built on AppSwarm technology specifically for this market opportunity. The downloadable app enables retailers to post photographs and descriptions of their products, while employing text messaging to market their offerings and build customer relationships and brand loyalty.
The product lineup at SingleSeed.com continues to expand. Earlier this month, SinglePoint added three new CBD products, making them immediately available to customers across the U.S. The oil, salve and tincture join a full array of CBD products, such as a recently added nano technology CBD water of American Premium Water (OTCPK: HIPH) that SinglePoint says has seen more than 200 bottles ordered shortly upon getting them on the virtual shelves.
By itself, this aspect of LastMile can be considered a company maker. As of October 17, adult-use cannabis is legal for the roughly 37 million people in Canada, not to mention the tourist industry. The 30 states in the U.S. were marijuana is legal open the doors to another roughly 200 million citizens of those states (again without consideration for tourism). An app and delivery chain that gets cannabis legally from the dispensary to the end-user without question has blockbuster potential.
Consider privately-held cannabis delivery service Eaze. The company delivers in select cities in California and as of September 2017 had raised $52 million to fund expansion, which stood at that time at approximately 120,000 deliveries per month. Clearly, investors support the idea and there is stunning demand.
Cannabis is Plenty to Justify Higher Value, But Cryptocurrency Too?
As for the SingleCoin digital wallet, it was compelling enough to garner the attention of Kevin Harrington, the informercial guru and original shark on CNBC’s hit investment show Shark Tank. Harrington joined the SinglePoint team as spokesman for the launch, which included a national television commercial campaign where Harrington proclaims digital currencies to be “the next big thing” and the SinglePoint Powered by AppSwarm digital wallet to be the best place to get started buying, using and storing digital currencies.
Shortly after the launch, AppSwarm and SinglePoint announced that the app had been installed more than 12,000 times with activity continuing to increase. Presently only used for Bitcoin, the addition of Ethereum is in beta testing with plans to add Ethereum transactions to the digital wallet in the near term.
The hottest industry around in 2017, Bitcoin buzz has cooled off in 2018. The fact is that it is just part of a normal development cycle for any new industry. Cannabis was once the same way, derided by big Wall Street players as a cult-like fad full of illegitimate companies. Now, Wall Street has been jumping in hook, line and sinker. Many of the same negative things have been said about cryptocurrency and blockchain technology. Yet, here we are today with the days of them being linked only to anti-establishment sorts long gone while blockchain comes mainstream through icons like IBM (NYSE: IBM), Kodak (NYSE: KODK) and Maersk and Bitcoin finds a settling point before its next run up.
The time is again right for cryptocurrencies and there couldn’t be a brighter future for cannabis. To that end, apps abound and will continue to more sophisticated in the future. Luckily for companies like AppSwarm and SinglePoint, demand will not falter because our never-ending thirst today to have the world at our fingertip can never be fully satiated. For investors, this is the next golden opportunity to capitalize on a quickly emerging market segment.
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