--FDA Published Regulatory Proposals for Industry Comments on April 24, 2014
--Proposals Would Exclude from Regulation "Tobacco Accessories" such as the mCig 2.0
--Proposals Would Exclude from Regulation "Nicotine-Free" eCigs such as the VitaCig
--Proposals Would Exclude from Regulation Non-Nicotine Flavoring as found in the VitaCig
--Proposals Would Permit the Continued Online Retailing of eCigs and Tobacco Accessories
BELLEVUE, Wash., April 25, 2014 (GLOBE NEWSWIRE) -- mCig, Inc. (OTCQB:MCIG) mCig would like to provide its customers, shareholders, and stakeholders with an important update relating to the much anticipated United States Food & Drug Administration ("FDA") regulatory proposals for the Electronic Cigarette (eCig) industry as published by the FDA on April 24, 2014. The document can be viewed in its entirety on the FDA's website at http://www.fda.gov or directly at: https://s3.amazonaws.com/public-inspection.federalregister.gov/2014-09491.pdf
This regulatory proposal has been anticipated by industry participants for the last two years and comes at an important juncture in history as electronic cigarettes continue to gain acceptance and adoption by traditional smokers. Overall, the company is of the opinion that the proposal as currently published came in on the lighter side of what some industry observers had speculated and that on the margin, these proposals are well balanced and highly accommodative of future growth in the industry. Specifically, the FDA elected to avoid regulating the following key areas of dispute:
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Online Sales of eCigs and eCig related Products
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Non-Nicotine Products
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Electronic Cigarette and Tobacco Related Accessories
- Regulating Nicotine-Free Flavors in eCigs
Proposed Rules (as currently published) Exclude mCig and VitaCig Products from Mandatory Regulation
Based on the Company's current understanding of the proposed law, the mCig (which is categorically a Tobacco Accessory most comparable to a lighter or heating device) will fall outside the scope of mandatory regulation.
Based on the Company's current understanding of the proposed law, VitaCig and other nicotine-free products will also be excluded from any mandatory regulation. Even with this positive development for VitaCig, management has made a strategic decision that VitaCig, Inc. will operate under stringent regulatory standards that will match or even exceed those proposed by the FDA yesterday. Over the ensuing weeks, VitaCig, Inc. will be unveiling several initiatives that will further highlight this decision.
"Investors and customers that have followed the progress of mCig will note that from the outset our primary business strategy has been to leverage the benefits of mobile heating/vaporization technology while avoiding overly regulated industries such as Pre-Packaged Cannabis delivery or Tobacco/Nicotine delivery. The proposals by the FDA confirm that our strategy was correct and that, barring any changes to what has been proposed, our products will indeed fall outside the scope of this regulation," said Paul Rosenberg, CEO of mCig, Inc.
Supply Update
In the two weeks following the national media attention mCig, Inc. received, an overwhelming amount of orders were placed by customers around the world that exceeded even our highest projections for inventory management. We are now pleased to report that both mCig and Glass Pak inventories will be replenished and nearly 5,000 orders currently in pending fulfillment status will be fulfilled by Saturday May 3, 2014. We are pleased to report that VitaCig customers did not experience any delays in fulfillments and that both VitaCig and mCig inventory will soon be at all time highs.
We sincerely apologize for these inconveniences and thank all our customers for their patience and continued support.
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 is preparing to launch the VitaCig, a $2 nicotine-free eCig that delivers a water-vapor mixed with vitamins and organic flavors. Through its wholly owned subsidiary, LiqCig, Inc. the company is engaged in the development of the world's first pre-packaged alcohol friendly eCig. 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.