PHOENIX, AZ, Aug. 11, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE ‒ There is a new national solar power player rising. SinglePoint, Inc. (OTC:SING) has stated and is executing on its strategic plan to become the next national provider of solar+ services through a targeted national roll up strategy with the goal of having residential and commercial installers and vendor partners in all 50 states. Already operating in 34 states the company currently serves residential and commercial with its industry leading sales model through Direct Solar America. The company announced its plan to acquire additional companies in the space to quickly capture market share, grow revenue and to ultimately drive long term profitability.
The company has been actively targeting acquisitions that complement and provide accretive revenue to its existing solar footprint. It recently announced its subsidiary, Direct Solar America has signed a letter of intent to acquire Standard Eco who reported unaudited revenues greater than $10M the past two years and was operationally profitable. The acquisition is intended to be financed with a combination of cash (Direct Solar America) and stock (SinglePoint). The consideration for the stock will be a secured note between SinglePoint and Direct Solar America.
“This is the first of a number of acquisitions we have planned as we build this national solar network,” states Wil Ralston, President SinglePoint. “We will leverage the current Direct Solar sales network that is operating in 34 states to add best in class installers focused on creating a deep and powerful national offering to serve customers in every state and to most importantly take advantage of operational cost savings while benefiting from being one of, if not the only company that will be able to serve every zip code in the United States.”
“Once installers reach a certain size, averaging between 60-100 installations per month it becomes increasingly difficult to scale beyond that,” according to Pablo Diaz, CEO Direct Solar of America. “I witnessed and lived this scalability phenomenon first hand as an active solar installer in the Southwest region of the US. One of the immediate problems is the investment in customer acquisition which we have addressed at Direct Solar America eliminating the need for local and regional installers that we acquire to have to make this investment.”
The planned vertical integration of our leading sales network and local installation will provide additional opportunities to create a network that has a multiplying effect on value creation and scale throughout the companies as opposed to simply having singular, siloed or “non-connected” solutions. Direct Solar America’s early stage acquisition criteria is centered on multi-year installers that are doing between $5M - $15M in annual revenue.
“The second inhibitor is systems that can handle operational scale,” Pablo Diaz states. “As a former solar installer owner, I clearly see the benefits of creating the national solar network to leverage scalability and purchasing power through shared service resources provided by Direct Solar America and our partners to our targeted acquisitions.”
The world is currently experiencing the largest global pandemic in history and it's being felt by hundreds of millions. As homes have become offices, schools, summer camps, and more, Solar is in high demand. Solar is security, Solar+ battery is the comfort knowing you will have power in the event of an outage.
According to EIA, of all renewable energy generation, solar PV is expected to grow the fastest from now to 2050. The future of solar energy is bright and employs hundreds of thousands and drives 10s of billions in economic value. Both presidential candidates have plans to drive further growth in the sector, meanwhile, Solar PV capacity is expected to double over the next five years. As solar grows the industry is continuing to drive innovation. With additional solar capacity, the need for battery backup has become a driving force. SinglePoint and its acquired companies will be providing solutions across the board for homeowners, commercial buildings, and industrial use complexes to offset the energy needs, provide redundancy in the event of emergency or outages and help reduce costs of energy consumption.
National Solar Network consolidation has begun and the opportunity exists for a network of high quality independent contractors
The acquisition of Vivint Solar by Sun Run for $1.46B in stock and assumption of $1.8B in debt signaled to the market that the solar consolidation phase has begun. This deal puts smaller providers in a precarious position as the economies of scale will be very difficult to achieve. SinglePoint believes that this deal solidifies management's plan to roll up targeted solar+ companies providing the infrastructure to compete at the highest level. We intend to build a national solar installation network targeting acquisitions primarily within our existing solar sales footprint then expand into high growth potential areas. The Solar Energy Industries Association (SEIA) report last updated June 11, 2020, the “supply chain, overhead and margin” are listed as over half of the average industry costs of $2.83 per installed watt.
The Solar+ Battery Storage opportunity
2021 and beyond represents a massive opportunity for solar as both parties have introduced or supported legislation earmarking billions of dollars towards infrastructure spending is a critical and essential tool to drive economic growth. Continued ESG focused investing alongside potential infrastructure and clean energy policies, including solar focused stimulus and incentives have the potential to provide sustainable tailwinds in the near future.
Excerpts from a recently published report (Morningstar Analyst Sees Potential for US Energy Independence with 100% Renewable Sources) by Travis Miller states that the country as a whole has a chance to make energy independence based on renewable sources: ... Solar already is at the top of the investment list for nearly all investors, from utilities to corporates, who want to expand their renewable energy profiles. Most of the market agrees that solar is the accepted choice for incremental renewable energy. It will only grow over the next decade as utilities and energy companies try to meet the demands from policymakers and corporates.”
Direct Solar America positioned to be a national solar provider capitalizing on the Solar+ Battery Storage market opportunity
A Streamlined Focus on our most promising Core Business Assets
The past few years at SinglePoint have been focused on preparing the public company to become fully reporting and seeking out investments and capital partners to support the growth or acquisition of companies. Moving forward we will concentrate a majority of our efforts to look for acquisitions or to make improvements in our go-forward core business segments in the solar and hemp categories. Senior management is committed to continuing to look for accretive acquisitions, supported by favorable capital that will ultimately build profitable business units with revenue growth in addition to utilizing future profits to pay down unfavorable term debt, improving cash flow, and the balance sheet.
Our ultimate goal for our stakeholders and shareholders is to uplist to a higher exchange, we are positioning the Company for that eventuality but it will take improvements in revenue and profits, shareholder equity, price per share to get to a higher listed exchange. It is our belief that eventually uplisting on a higher exchange provides additional liquidity for our current shareholders and investment groups. We are committed to taking the appropriate actions at the appropriate times to continue to drive the company towards achieving its goals.
About SinglePoint, Inc.
SinglePoint, Inc. (OTCQB: SING) is a fully reporting company with core holdings in Solar Energy Services and Industrial Hemp based Consumer Products. Acquired in May 2019, Direct Solar America, a majority owned subsidiary, now operates its leading national solar sales brokerage model in 34 states. In the past year, Direct Solar America has virtualized its sales platform and has added its corporate offerings. 1606 Original Hemp, has been designed and created to be the premier category leader in manufacturing and marketing high quality smokable industrial hemp consumer products for sale through traditional retail channels and online. Since its debut in late 2019, 1606 Original Hemp has been placed into hundreds of retail locations across the country and has amassed a large social media following that continues to grow. The Company has a portfolio of non-core focused businesses that are searching for strategic partnerships or other alternative solutions. SinglePoint is committed to positioning the Company to be able to up list to the highest exchange possible which we feel is a benefit to our stakeholders and shareholders.
Connect on social media at:
https://www.facebook.com/SinglePointMobile
https://twitter.com/_SinglePoint
https://www.linkedin.com/company/singlepoint
https://www.youtube.com/user/SinglePointMobile
For more information visit: www.SinglePoint.com
Forward-Looking Statements
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the Company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
Technical complications, which may arise, could prevent the prompt implementation of any strategically significant plan(s) outlined above. The Company undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
Corporate Communication
SinglePoint, Inc.
888-OTC-SING
investors@singlepoint.com
www.singlepoint.com