BELLEVUE, Wash., Sept. 19, 2014 (GLOBE NEWSWIRE) -- mCig®, Inc. (OTCQB:MCIG) ("mCig"), a technology company that owns, manufactures, and distributes the mCig®, VitaCig®, and Vapolution products, is pleased to announce that the Company expects to report its quarterly results for the period ended July 31, 2014 after the closing bell today. The highlights of mCig's impressive quarter are reviewed below:
The company expects to report Revenue for the three months ended July 31, 2014 of $195,565, which represents a 1,500% increase when compared with revenue of $12,500 over the same period in 2013. This figure excludes revenue associated with operating subsidiaries that are still being integrated pursuant to the framework previously discussed by management and in fillings with the Securities and Exchange Commission.
The company expects to report total stockholders' equity of $2,793,513 for the quarter ended July 31, 2014. This increase stems from a significant increase in inventory and prepaid expenses associated with the Master Consulting and Royalty Agreement signed with Hip Hop Mogul "Rick Ross". This figure excludes any value for operating subsidiaries or recently announced registered trademarks.
The company expects to report Gross Profit Margin of 50.18% for the quarter ended July 31, 2014 maintaining its gross profitability in line with prior quarters. This figure does not reflect the recent price increase of both the mCig® and VitaCig® which the company believes will contribute to an increase in Gross Profit Margin in subsequent quarters.
The company expects to report a significant decrease in accounts payable and total liabilities. For the quarter ended July 31, 2014 these stood at only $6,943 while the share count remained the same at 270,135,000. The company continues to grow its operations without incurring any dilution or toxic debt.
Due to one-time non-cash stock-based compensation charges (for consultants, employees, and celebrity brand ambassadors) the company will not be reporting an adjusted net profit. However, on a cash basis the company remains profitable while increasing its inventory, distribution, and employee count in a disciplined manner.
"mCig®, VitaCig®, and Vapolution continue grow and maintain their brand momentum. Each and every day, these brands grow their customer-base, sales, and global reach," stated Paul Rosenberg, the Company's Chief Executive Officer. "This quarter was an important transitional quarter for us as we had to account for the important celebrity brand ambassador deals we concluded over the course of 2014. We also had to exclude key operating figures due to the framework that we discussed in our previous filings. It is always difficult to swallow large expenses and setbacks but we have now emerged with a stronger balance sheet and virtually no liabilities or debt. All this was achieved while maintaining our core principals of zero dilution or toxic debt instruments."
"The marijuana sector is currently suffering from a temporary decline in investor interest and a reality check for most companies that over-extended themselves and pursued growth through toxic debt issuance. At mCig, we believe the industry is at its infancy with most political pundits expecting the cannabis debate to take center-stage in the 2016 US Presidential Elections. In an age where nearly every government policy is initiated at the federal level, it is our opinion that it's only a matter of time before the US Federal Government implements a federal initiative."
"For the coming quarter and beyond, we remain excited by the many initiatives we have in place for all our brands and believe that the best days are yet to come for our young company. It is sobering to consider that a year ago, our total revenues were just $12,500 and we had not yet launched the mCig 1.0," concluded Paul Rosenberg.
Operational Highlights of the quarter and the period subsequent to the end of July 31, 2014 include the following:
- The Company obtained USPTO registered trademark status for mCig® and VitaCig®
- The Company launched the mCig® 2.5 transitional device.
- The Company raised the prices of mCig® 2.5 to $15 and VitaCig® to $5.
- The Company increased its retail distribution store count.
- The Company signed a Letter of Intent with a South African distributor to distribute VitaCig® products.
- The Company increased its WDR (Wholesale, Distributor, Reseller) count to its highest level with new records for WDR activity.
- The Company received 7 comments down from 9 comments on its latest S-1 Amendment for the Spinoff, IPO, and Dividend of VitaCig, Inc. An amended S-1 will be filed next week paving the way for the conclusion of this process.
- The Company has completed R&D on two new products that will be launching in the next few weeks.
- At the unsolicited request of a world-famous celebrity, the company shipped product directly to a Hollywood production company for potential use in an upcoming film.
About mCig, Inc.
mCig, Inc. (OTCQB:MCIG) is a technology company focused on two long-term secular trends sweeping the globe: (1) The decriminalization and legalization of marijuana for medicinal or recreational purposes (2) The adoption of electronic vaporizing cigarettes (commonly known as "eCigs") by the world's 1.2 Billion smokers. The company manufactures and retails the mCig® – the world's most affordable vaporizer priced at only $10. Designed in the USA – the mCig® provides a superior smoking experience by heating plant material, waxes, and oils delivering a smoother inhalation experience. The company also owns Vapolution, Inc. which manufactures and retails home-use vaporizers such as the Vapolution 2.0. Through its wholly owned subsidiary, VitaCig, Inc. the company manufactures and retails the VitaCig®, a $5 nicotine-free eCig that delivers a water-vapor mixed with vitamins and natural flavors. See more at: http://www.mCig.org/, www.Vapolution.com, and www.VitaCig.org.
The company believes that a well regulated marijuana industry is emerging as more states follow the lead of Washington and Colorado in legalizing marijuana. A similar trend is developing within the eCig industry following the first acquisition of an electronic cigarette brand (Blucigs) by a traditional tobacco company Lorillard Inc. for $135 million followed by another acquisition in February 2014 by Altria Group Inc. of Green Smoke for $150 million. Wells Fargo analyst Bonnie Herzog estimates that eCig sales may rise from $1 Billion in 2013 to $10 billion over the next three years.
mCig, Inc. (OTCQB:MCIG) has positioned itself as a first mover at the intersection of these two trends and hopes to create shareholder value by making the mCig® one of the leading choices for electronic consumption of plant material. - See more at: http://www.mcig.org/investors/investor-opportunity-subpage/
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.