mCig, Inc. Acquires Vapolution, Inc., Entering Traditional Vaporizer Market
January 24 2014 - 8:40AM
-- First Strategic Acquisition Marks Entry to New
Market
-- Significant Corporate and Strategic
Synergies
-- Non-Dilutive Transaction
mCig, Inc. (OTCQB:MCIG) is pleased to announce the acquisition of
Vapolution, Inc. – a leading herbal vaporizer company based in
Northern California in a non-dilutive transaction that consolidates
an industry leader with over $1.3 million (unaudited aggregate
revenue since 2010) in sales. This acquisition transforms mCig,
Inc. into a formidable competitor in two high growth categories:
Personal Vaporizers (mCig 2.0, Vapolution PocketVape) and
traditional home-use Vaporizers (Vapolution 2.0).
"We are delighted to announce the acquisition of one of the most
well respected brands in the marijuana community: Vapolution - a
company that was started by two passionate friends: Patrick Lucey
and Chad Shaffer 14 years ago in their garage and became one of the
leading vaporization companies, selling in over 11 countries and
200 shops around the world. This acquisition sets the stage for
significant synergies. Vapolution will benefit from our platform
and technological expertise as well as our relationships in China
which have allowed us to bring to market two generations of
personal vaporizers in less than 4 months. mCig, Inc. will benefit
from having two great minds like Patrick and Chad on our team to
assist with the continual improvement of the mCig and additional
consumer products. Our aim is to become number one or two players
in each category where we operate and we will work hard to achieve
this objective for our shareholders," said Paul Rosenberg, CEO of
mCig, Inc.
Significant Corporate and Strategic
Synergies
Vapolution, Inc. will continue to operate as a standalone entity
with its sales and income figures consolidated into mCig, Inc.
following the acquisition date. Both companies see significant
corporate and strategic synergies as a result of this transaction
including but not limited to: Shared R&D, Open and
Collaborative Relationship, Consolidation of Administrative
Overhead, and Consolidation and Centralization of Order Fulfillment
Facilities.
Non-Dilutive Transaction
As part of this transaction mCig, Inc. will issue 5,000,000
shares representing 1% of our fully diluted capital structure to
shareholders of Vapolution, Inc. The first tranche of 2,500,000
shares will be issued upon closing with the second tranche to be
issued on the one year anniversary of the closing. Paul Rosenberg,
CEO of mCig, Inc. will cancel an equal amount (5,000,000 shares) of
common shares owned by him resulting in a net non-dilutive
transaction to existing mCig, Inc. shareholders.
Vapolution, Inc. Key Performance Indicators
Founded: 2000 in Chico, CA
Revenues: $1.3 million (unaudited) FY2010-2013
Average Unit Selling Price: $125 MSRP.
Products: Vapolution 2.0 Market Leading Vaporizer, Vapolution
All-Glass "Pocket Vaporizer", Glass accessories.
Well known brand with over 20 distribution points, and sales in
11 countries. The only Vaporizer to be designed, engineered, and
assembled in the USA.
Website: www.vapolution.com
"Making the decision to join mCig, Inc. was not an easy one.
Chad and I spent over 14 years in this business and developed a
company we are extremely proud of. What ultimately got us excited
was Paul and Mark's vision and tenacity for approaching the
industry. As our industry evolves from being fringe to completely
legitimized, we realized that we needed to align ourselves with a
solid team that would have access to capital, and ideas. We are
very excited about the future of mCig and Vapolution. And
delivering our loyal customers more iterations of our products,"
said Patrick Lucey.
"I am very excited about teaming up with mCig. Inc. Vapolution
has been focused on producing top quality vaporizers at affordable
prices for over 14 years. In 2011 we introduced the Vapolution 2.0,
a lighter, more efficient version of the original vaporizer. Since
then it has been gaining popularity through word of mouth and
social media networking. Uniting ourselves with mCig makes sense
for they also focus on producing a top quality product with an
affordable price. mCig vaporizers will be the perfect complement to
Vapolution. Paul and Mark's drive to stay on top of the ever
changing market and keeping up with newly passed laws and bills
will be a huge asset as well as their knowledge of marketing and
the industry as a whole," said Chad Shaffer.
"I am very proud to be part of a company that now encompasses
two leading products: the mCig 2.0 and the Vapolution 2.0. People
within the marijuana community know that prior to the last few
years when our industry has taken center stage in the mainstream,
the only way for a brand to thrive was through word of mouth and
solid reviews. I bought my first Vapolution vaporizer 8 years ago,
and can say that it is the best home vaporizer in the world. This
view is shared by thousands of people around the world who have
grown accustomed to the great tasting vapor from a device with an
all glass vapor path," said Mark Linkhorst.
Vapolution 3.0
The newly combined teams have already started collaboration on
the design of the Vapolution 3.0 with a conceptual release date of
Q3-Q4 2014.
mCig Highest Sales Day Recorded
mCig, Inc. would also like to report that on January 23, 2014
the company achieved its highest recorded sales day. More sales
information will be disclosed in the upcoming quarterly release.
The company is seeing strong viral adoption of the mCig as reviews
of the 2.0 begin to disseminate throughout the internet.
mCig 2.0 Video Ad
The company recently released a video advertisement for the mCig
2.0 which can be found here:
http://www.youtube.com/watch?v=SiKab5UooJw
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 – a purpose
built loose leaf eCig retailing 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. See more at: http://www.mcig.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. 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.
CONTACT: Paul Rosenberg
CEO
(425)462-4219