HENDERSON, NV--(Marketwired - Nov 22, 2016) - mCig Inc., (OTCQB: MCIG), a diversified company servicing the legal cannabis, hemp, and CBD markets, announced today it elected to convert its Convertible Promissory Note into shares of Omni Health, Inc., (OTC PINK: OMHE) as of October 31, 2016. The outstanding balance owed, $98,108, including interest, was converted into just over 17,677,058 shares, increasing its current position to more than 75,177,058 shares.
"MCIG had been approached by many companies that wanted VTCQ and we wanted the best deal possible for MCIG and its shareholders. We kept the brands we helped create (Vitacig), kept a sizeable share position, and made a deal with a company that is doing 7 figures in revenue a quarter," said Paul Rosenberg CEO of MCIG, Inc. The significance of the Omni Health, Inc., (OTC PINK: OMHE) deal for MCIG shareholders is the passive investment by MCIG will derive a future cash position for MCIG and MCIG shareholders. At a $0.02 PPS of OMHE, our investment is worth roughly $1.5 million; however the current valuation is based upon the previous VTCQ business and its net losses, while OMHE has just stated a net profit of $1.6M in its first quarter, which will significantly enhance our investment once all information is made public and digested in the market. With $1.6M net profit reported in its first quarter, dividend holders in the old VTCQ now have significantly more revenue stream and profit stream than the previous assets which were taken back into MCIG, mainly the VitaCig product line.
As a shareholder of OMHE, MCIG is happy to unlock value for shareholders by developing great streams of revenues and incubating great businesses like Scalable. Each business division has its own time and growth, and MCIG's time now will focus on the other divisions now that VTCQ is in good hands with a strong management team to guide our ownership.
OMHE will be engaging in its own public relations program to unlock the value for its shareholders, and operate completely autonomous with MCIG. Michael Hawkins has been leading the transition of power team with OMHE to assist new management in a smooth progression from a private operation for more than 40 years to one of a public entity. Mr. Hawkins will be relinquishing his role as the Chief Executive Officer during this period of transition as it is winding down to new management as a natural progression to autonomy.
About mCig, Inc.
Headquartered in Henderson, Nevada, mCig Inc. (OTCQB: MCIG) A diversified company servicing the legal cannabis, hemp and CBD markets via its lifestyle brands. MCIG has transitioned from a vaporizer manufacturer to industry leading large scale, full service cannabis cultivation construction company with its Scalable Solutions division currently operating in the rapidly expanding Nevada market. The company looks forward to growing its core competencies to service the Ancillary legal Cannabis, Hemp and CBD markets, with broader expansion to take place once federal laws change. For more information visit www.mcig.org.
About Omni Health, Inc.
Headquartered in Miami, Florida, Omni Health Inc. operates a pharmacy operation in Hialeah, Florida, Malecon Pharmacy. Malecon Pharmacy has been a pillar of the local community since 1974 providing healthcare products, pharmacy operations, prescription drugs, and other services and products in the skin care and anti-aging industry.
Safe Harbor Statement
Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the Company's ability to develop, market and sell products based on its technology; the expected benefits and efficacy of the Company's products and technology; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, and future product commercialization; and the Company's business, research, product development, regulatory approval, marketing and distribution plans and strategies.
This release contains a non-GAAP disclosure, EBIDTA, which consists of net income plus interest expense, net, provision for income taxes and depreciation and amortization. This term, as the Company defines it, may not be comparable to a similarly titled measure used by other companies and is not a measure of performance presented in accordance with GAAP. The Company uses EBIDTA as a measure of operating performance. EBIDTA should not be considered as a substitute for net income.