HENDERSON, NV--(Marketwired - Oct 24, 2016) - MCIG, Inc., (OTCQB: MCIG) a diversified company servicing the legal cannabis, hemp, and CBD markets is pleased to give this corporate update to our current & future shareholders surrounding the operations of MCIG, Inc. First, let me thank the many investor emails I have received over the past few weeks that have made inquiries as to our product lines as well as our Nevada operations, it is for this reason I am providing this update ahead of what we feel is a pivotal moment for the cannabis industry.
The 2016 elections and cannabis related ballots across the United States are exceptionally important to the continued expansion of the industry and we feel MCIG, Inc. is well positioned at many different market verticals, most notable the Nevada cultivation market. Company divisions are fundamentally healthy and we expect to see revenues continues to grow as overall operations expand and are scaled to meet various forms of demand. Currently, 3 of our 4 divisions are profitable as we continue to focus on this profitability via cost cutting initiatives that continue to improve our margins. Also, our cash position has significantly improved while our expenses remain at all-time lows allowing for a good base for future growth.
MCIG continues to expand our shareholders position within the rapidly growing Cannabis market and we have become even more geographically diverse following the addition of new clients, new products roll outs, and continued market penetration via existing product lines and expanded distribution agreements.
In an effort to keep our investors up to date with everything going on within the company, we want to provide this update for each of our portfolio companies and investments as we prepare to enter into the third quarter.
Scalable Solutions -
After being established in March 2016, Scalable Solutions has quickly become a leader when it comes to Marijuana cultivation construction. Currently, we have five projects under construction and a backlog of more than $6 million dollars. Scalable Solutions will become a main driver of revenues for mCig as the legal cannabis industry continues to grow within its Nevada, which is expected to be a $629.5 million market by 2020. The company is also currently working on smaller projects in Washington and Oregon in various capacities while expanding its base of operation in Nevada.
It is important to note that if Nevada legalizes adult use cannabis on November 8, 2016 we will witness an unprecedented socio-economic impact in a state already shaped and fueled by tourism and entertainment. . That's why we are taking an aggressive approach to contract new projects in Nevada while expanding our professional team of engineers and consultants.
Currently, Scalable's Sin City and Green Leaf Farms projects under contract are ahead of schedule. Both projects will be expanding as the Nevada markets expand to fulfill their eventual maximum space usage for the large land and warehouse they respectively occupy. Sin City will eventually expand from 4,800 square feet to 40,000 square feet and Green Leaf will modify it entire facility in order to occupy all 30,000 square feet of their facility.
Management expects the Solaris project will become the model for future Green Houses which when completed will be the largest approved green house facility in Nevada with room to grow. The current parcel of Land that Solaris occupies is 12 acres, with only 20% currently allocated by the main Solaris Greenhouse. Many licensed producers are planning on scaling their operations as demand increases as it has increased in other markets. Our scalable division has already seen our current projects swell in size and each of our current clients has expanded the construction budgets multiple times, giving MCIG Inc. via Scalable Solutions years of continued project revenue.
Scalable targets a 10% profit margin on its construction, with monthly management fees and performance incentives. This continued growth along with identifying other avenues for revenues and expansion will ensure Scalable's long term viability.
The sale of our flagship VITACIG Brand just had a record breaking quarter as VitaCig continues to expand its operations outside of the united states. VitaCig will soon debut in the Philippines, South Africa, and Hungary. With the recent country additions, VitaCig now exports its product to more than 30 different countries.
Part of that success, is due to our R&D department, who continues to develop the world's most innovative, and unique inhalation technologies and formulas. Within the last few month, VitaCig has released four new concept flavors under the, S-Edition. This Special Line Edition features SURGE B-12 + Energy Complex, SLEEP VitaCig® Edition, Kama Sutra (SEX), STRESS VitaCig® Edition, with 100% real Cocoa, Getting into the Holiday spirit early, VitaCig has just released its VitaCig Candy Cane -- Holiday Limited Edition, the perfect gift or stocking stuffer for this Holiday season. Orders can be placed by visiting: http://www.vitacig.org/
At the CHAMPS Tradeshow in Denver, Sept. 26-28, 2016 the Company launched its new and improved VitaCBD™ Product Line to Buyer's in the Smoke Shop Industry.
The new line consists of healthy, uniquely blended 250mg, 500mg and 1000mg tinctures... 150mg and 300mg PG Free E-Liquid... 100mg, 500mg and 1000mg Blood Orange Essential Oil Infused Topical Lotion, a complete line of relaxing melatonin and 25mg CBD Edibles, with more in the works.
The CBD Division has begun supplying Raw Hemp-Extracts to other CBD Manufacturing Companies as Cherry Hemp Oil Bulk CBD Supply Co. During its initial two week period of operations the CBD Division logged over $50,000 in sales.
With numerous Distribution Networks with their eye on VitaCBD™, a new Bulk CBD Supply Co., a heavy on-line presence, along with plans for unique, Hemp-Extract Based consumer product development phases, future growth for this new CBD Division should become a significant boost for mCig, Inc. as a whole. Orders can be placed by visiting: http://www.vitacbd.com
Rollies Division -
MCIG's Rollies division recently entered into a partnership agreement with Nevada based company Vellum LLC. Both companies will work together on bringing to the market a new format of smoking papers and cannabis pre-roll filling services to a different marijuana businesses.
Vellum LLC provides pre-roll filling services for two California brand's: Nativ and "Lucy's" using a new JOINT format from MCIG. Collaboration of two companies, already generated more than 1 mil pre-rolled sold.
"MCIG's Rollies division is finally on a roll", says Alex Levitsky the CEO of Rollies. During the past 5 months we have been researching and testing Nevada's marijuana market. We have met with many owners and managers of cannabis cultivation, production and dispensaries businesses. They all were highly impressed with our unique format of pre-rolls. Success of "Nativ" and "Lucy's" have spiked tremendous interest from Las Vegas cannabis businesses. We're in the middle of making a deal with a big cultivator/producer in Las Vegas which will significantly increase our sales volume on papers as well as filling services performed. Now, with joining forces of an experienced management team form Vellum, we would be able to expand our services rapidly to all marijuana legal states across an America.
The company oversees all retail sales of mCig's products. In May 2016, MCIG developed and approved a multifaceted operational plan for the expansion of its retail sales. The strategy has resulted in significant growth and is based upon these principles:
1. Expand domain name and website presence to capture and use to the Company's advantage the recent and consistent changes in the Google ranking process, seeking guidance and direction from the industry experts and market leaders.
2. Develop and implement internally and externally, a system in which sales to customers can be expedited with secure privacy, yet inherent transparency.
3. Expand product sales to include not just our own proprietary products, but to be the industry leader in CBD sales.
Based upon this research, the Company acquired three specific domain names to use in conjunction with the four domain names it operates. As part of these acquisitions we have some of the best site development, SEO, and analyst in the market available to us who have provided in depth and thorough analysis of all out sites.
With the goal to propel mCig Internet towards domination of the specific industry keywords organically, and not by the conventional paid advertising methods that often prove highly ineffective, mCig Internet strives to control the primary keyword positions, and once achieve, to maintain them, at no additional costs unlike our various competitors.
Omni Health, Inc. -- While not recorded on the financial statements of MCIG, the Company maintains approximately a 9% interest in the company. Omni Health is the manufacturer and distributor of anti-aging creams and operates a Pharmacy operation in the Miami, Florida area.
Omni Health is conservatively projecting $6M in revenue with an 8% net profit margin for FY 2017. Omni will be more active independently promoting their company as soon as the symbol change is approved, any day now. Realizing value for our shareholders is a must and we have great plans for our position in Omni for our shareholders.
All in all, as previously stated, we feel we have created an environment where our company is a bright spot for the ancillary cannabis and hemp markets. MCIG has clearly reached an important inflection point of controlled expenses, rising revenues, and profitability. While the road was long we chose it not because it was easy, but because it was difficult and shareholder friendly. MCIG's fiscal prudence and the avoidance of toxic debt is what has allowed us to be a diversified investment rather than a fly by night company trying to get it right at the cost of its shareholders. We are poised to flourish, rather than to fade and our corporate philosophy will continue to remain intact for the benefit of our shareholders. The recent retirement of 50,000,000 shares of stock is further testament to this fact and we will be announcing more changes to benefit shareholders as well as update shareholders to the potential impact of the November 8th ballot initiative impact, which we feel one way or another is either good news or great news for MCIG Inc. Thank you for your time.
CEO MCIG Inc.
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.
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.