mCig Inc (OTCMKTS:MCIG) shares were up 9.41% on Friday to $0.107 and flat in after-hours trading. Share prices have been trading in a 52-week range of $0.02 to $0.22. The company has a market cap of $29.53 million at 331.66 million shares outstanding.
Last month, mCig Inc announced that its subsidiary finalized an exclusive deal with Sangreen International Agricultural Technology Co, which is a leading greenhouse manufacturer. This will enable the company to purchase, offer and market Greenhouses for China’s pioneering manufacturer and global distributor of the comprehensive Cannabis market in the US.
Note that the cannabis industry in the US is projected to grow to $20 billion by 2020 after the November 8 vote that legalized the use of recreational or medical marijuana in several states. Companies are already competing in the space in terms of products and services, but mCig Inc is uniquely positioned to meet demands of underserviced parts of this marijuana market.
mCig Inc is a diversified company servicing the legal cannabis, hemp and CBD markets through its lifestyle brands. It has transitioned from a vaporizer manufacturer to industry large scale, full service cannabis cultivation construction company with its Scalable Solutions division operating in a Nevada market.
The company has two divisions: mCig Construction Division and mCig Commercial Division. The former constructs commercial buildings and modular buildings according to plans supplied by the customer, or act as a design/build firm taking the customer from concept to full turnkey occupancy, utilizing modular technology and structural insulated panels. It also manufactures, distributes and retails the mCig, a loose-leaf electronic vaporizing cigarette, while its subsidiary, Vapolution, Inc., manufactures and retails home-use vaporizers, such as the Vapolution 2.0.
Scalable Solutions operations are already underway and the company has five projects currently under construction, and a backlog of more than $6 million. Three flagship projects are Sin City, Green Leaf and Solaris in Nevada. 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. At completion, Solaris will occupy only 20% of its land parcel with a view to expanding to occupy a much higher percentage going forward so there’s also room for expansion and construction.
Another revenue stream is its brand of pre-rolled marijuana cigarettes, Rollies. mCig Inc reported pre-orders of more than a million units, far higher than anyone predicted and that was ahead of the November 8 elections. This means that orders likely jumped after the outcome of the vote and would mean more profit potential for mCig Inc.
Apart from that, the company announced that it is continuing to expand in international markets, through its VitaCig Division. mCig Inc noted that it has signed a 3-year distribution agreement for Europe which would result in a minimum purchase of $2 million. On top of that, the division has signed an agreement for Japan, valued at $1.3 million. These announcements accompanied the launch of the company’s VitaCig Excalibur, a rechargeable capsule system.