mCig, Inc. to Report Record Adjusted Earnings on Record Revenue Increase of 1,100%
July 28 2014 - 3:35PM
mCig, Inc. (OTCQB:MCIG), a technology company that owns,
manufactures, and distributes the mCig, VitaCig, and Vapolution
products, today announced that the Company expects to report record
operating results for its fiscal year ended April 30, 2014. The
highlights of mCig's record-breaking year are reviewed below:
- The Company expects to report approximately $543,000 in
company-wide pro-forma* revenue. This figure includes pro-forma
revenue for mCig, Inc., VitaCig, Inc., and Vapolution, Inc. for the
year ended April 30, 2014**. This compares with approximately
$50,000 in the prior-year ended April 30, 2013 and represents an
approximate 1,100% increase.
- The Company expects to report profitable Adjusted Earnings* for
the year ended April 30, 2014.
- The Company expects to report approximately $353,000 in
company-wide pro-forma* gross profit for the year ended April 30,
2014. This reflects a gross profit margin of approximately
65%.
- These financial results reflect only 15 days of sales for
VitaCig (launched on April 15, 2014) and only 103 days for mCig
inclusive of days where the company ran out of inventory.
- The company expects to report an increase of approximately
$2,100,000 in shareholder equity resulting in approximately
$1,900,000 in shareholders equity for the year ended April 30,
2014. This compares to negative shareholder equity (deficiency) of
($210,087) for the year ended April 30, 2013 and represents an
increase of approximately 900%. This result was achieved as total
debt was reduced to zero.
- The Company is pleased to report that its intellectual property
portfolio is about to be strengthened as the trademarks for mCig,
VitaCig, are several weeks away from being awarded the coveted ®
registered trademark certification from the United States Patent
and Trademark Office (USPTO). From that point forward, all company
products will include the ® symbol reflecting the company's
commercial ownership of these brands.
- The Company will be raising the price of VitaCig to $5 in
August reflecting strong demand and continued alignment with the
retail distribution strategy being deployed by management. In light
of the price increases, the Company will be eliminating shipping
costs entirely providing free shipping on all domestic orders with
no order minimums.
- As of the date of this release, the Company is pleased to
report nearly 30,000 customer relationships worldwide between its
three brands: mCig, VitaCig, and Vapolution. VitaCig repeat order
ratios continue to inch higher and currently stand at nearly 20%
roughly 90 days after the launch.
- VitaCig, Inc. spin-off, pro-rata dividend, and IPO remains
on-track, and the Company remains committed to seeing this process
through allowing VitaCig to focus on continued growth and dominance
in the nicotine-free electronic cigarette space while transforming
mCig, Inc. into a leading cannabis-focused business that will enter
into more traditional cannabis related industries while staying
true to the core principles that have guided the Company. As
previously mentioned, mCig, Inc. will continue to hold nearly 50%
of VitaCig, Inc. providing: potential upside from future growth in
the value of VitaCig, a mechanism for dilution-free financing for
mCig, Inc. parent that can be deployed in the rapidly growing
Cannabis industry, a strengthened balance sheet for the purpose of
obtaining a potential up-listing to a national exchange such as
NASDAQ or NYSE MKT.
- In August, VitaCig will be launching two new flavors targeting
the skincare and stress-reduction lifestyle categories. VitaCig
"Grace" and VitaCig "Calm". Both flavors will go on sale for $5
each and will increase the VitaCig portfolio of flavors to five:
Energize, Refresh, Relax, Calm, Grace.
- The first VitaCig Truck is seeing overwhelming acceptance
within the community. Beyond driving sales, the truck is also
educating consumers on the benefits of VitaCig over traditional
nicotine electronic cigarettes as well as the obvious benefits of
vaporization over traditional combustion smoking. The VitaCig truck
can be seen in New York City over the next 30 days in places such
as Yankee Stadium, Madison Square Garden, and Union Square.
- The Company is preparing to automate and outsource its
fulfillment operations. This decision was made after careful
consideration and due to the strength of sales and growth in both
our direct to consumer business as well as our WDR business. The
outsourced fulfillment center has already begun fulfilling a small
percentage of current orders. Following a comprehensive review of
this test-run all new inventory will be shipped directly to the
third-party fulfillment center.
- The Company continues to see strong viral adoption on social
media platforms: Instagram, Facebook, Youtube, and Twitter driven
in part by world famous brand ambassadors, Rick Ross, Bam Margera.
The Company continues to negotiate additional brand ambassador
deals and is hopeful that it will close its most important deal yet
with a world-famous reality TV star on the E! Television
Network.
- The Company has executed an agreement with one of the most
famous hospitality groups in New York City. Due to a
confidentiality clause in the agreement, the Company cannot yet
disclose the name of the group. The transaction calls for VitaCig's
to be distributed in each of the venues operated by the group for a
period of one year.
- The Company will be publishing a comprehensive 30 page Annual
Report in lieu of its usual monthly presentation. The Annual Report
will include a personal letter from CEO Paul Rosenberg summarizing
the first year results.
- The Company will be publishing the Annual Report following the
publication of its Form 10-K with the Securities and Exchange
Commission. This is expected to occur over the next 5-14 days.
* The Company cautions investors that the measures "Adjusted
Profit" and "Pro-Forma" reflect non-GAAP (Generally Accepted
Accounting Principles) measures. mCig presents these measures
because management believes that it is appropriate for investors to
consider results excluding these items in addition to the results
reported in accordance with GAAP. mCig believes that the non-GAAP
financial measure of Adjusted Earnings provides a consistent and
comparable measure of performance of its businesses to help
shareholders understand performance trends. This information is not
intended to be viewed as an alternative to GAAP information.
** The Company cautions investors that Vapolution, Inc. revenues
will not be included in the upcoming 10-K due to an internal
decision to carry Vapolution, Inc. under the investment method vs.
the consolidation method. The company may change this designation
in the upcoming quarters.
"While this is our first Annual Report since launching our
brands mCig/VitaCig and acquiring Vapolution, in reality these
figures represent only 105 days of operations due to the timing of
the various launches. Given our unconventional fiscal year-end of
April 30, these results are considered our Annual Results, and we
have taken the time to provide a comprehensive annual update in
line with what our shareholders expect from us," observed Paul
Rosenberg, Chief Executive Officer of mCig, Inc. "We are extremely
proud of our results thus far and are continuing to see both growth
and adoption indicating that mCig and VitaCig are becoming leaders
in their respective segments. We look forward to updating our
shareholders via our Form 10-K and Inaugural Annual Report which
will be published on our website."
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 $3 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
alcoholic eCig. See more at: http://www.mCig.org/,
www.Vapolution.com, 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.
This release includes forward-looking statements contained
within Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. All
statements regarding mCig's expected future financial position,
results of operations, cash flows, financing plans, business
strategy, products and services, competitive positions, growth
opportunities, plans and objectives of management for future
operations, as well as statements that include words such as
"anticipate," "if," "believe," "plan," "estimate," "expect,"
"intend," "may," "could," "should," "will," and other similar
expressions, are forward-looking statements. All forward-looking
statements involve risks, uncertainties and contingencies, many of
which are beyond mCig's control, which may cause actual results,
performance, or achievements to differ materially from anticipated
results, performance, or achievements. Factors that may cause
actual results to differ materially from those in the
forward-looking statements include those set forth in mCig's Form
10-K and other report filings with the SEC. mCig is under no
obligation to (and expressly disclaims any such obligation to)
update or alter its forward-looking statements, whether as a result
of new information, future events or otherwise.
CONTACT: Paul Rosenberg
CEO
(425) 462-4219