mCig Inc (OTCMKTS:MCIG) shares were up 30.71% on Monday to $0.111 and down 9.09% in after-hours trading. Share prices have been trading in a 52-week range of $0.02 to $0.13. The company has a market cap of $36.85 million at 331.66 million shares outstanding.
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. Its construction division constructs commercial buildings and modular buildings according to plans supplied by the customer, or act as a design and build firm taking the customer from concept to full turnkey occupancy, utilizing modular technology and structural insulated panels.
mCig Inc CEO Paul Rosenberg noted that the upcoming elections and cannabis-related legislation could prove to be beneficial for the company, which is well-positioned at many different market verticals. He projected that revenue will continue to grow as operations expand and are scaled to meet various forms of demand.
Under its Scalable Solutions segment, mCig Inc reported five projects under construction and a backlog of more than $6 million dollars, poised to become the company’s main driver of revenues as the legal cannabis industry grows in Nevada. If the state legalizes cannabis use by next month’s elections, the industry could be poised to grow into a $629.5 million market by 2020. As it is, mCig Inc is taking an aggressive approach to contract new projects in Nevada.
In addition, the company also boasted of a record breaking quarter for its flagship VITACIG Brand. It is set to debut in the Philippines, South Africa, and Hungary, opening up more markets for the product. Just last month, the company launched its new and improved VitaCBD™ Product Line to Buyer’s in the Smoke Shop Industry in Denver.
Lastly, its Rollies division recently entered into a partnership agreement with Vellum LLC. Under this agreement, 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. Rosenberg concluded that the company reached an important inflection point of controlled expenses, rising revenues, and profitability, adding that its fiscal prudence and the avoidance of toxic debt has allowed it to diversify and be poised to flourish.
The daily stock chart of mCig Inc does show tremendous activity, as price recently broke out of its consolidation below $0.05 and rallied to the $0.10 area. Volume is still significantly supported, reflecting investor interest, and this could lend more upside for the stock moving forward. Price seems to be on track towards testing its previous year highs closer to $0.20, especially if the upcoming elections does favor the cannabis industry.
Other potential areas of growth for the company include its Omni Health Inc holdings, which is conservatively projecting $6M in revenue with an 8% net profit margin for FY 2017. mCig Inc maintains around 9% interest in Omni Health, which is poised for actively promoting their company as soon as the symbol change is approved. Further updates on mCig Inc plans are to be provided after the Nov 8 polls.
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