HENDERSON, NV--(Marketwired - Jun 5, 2017) - mCig, Inc., (
Key Highlights of FY2017:
- Net Sales increased to $4.5 million, a 158% increase year to year comparison, and a 1,294% increase for the 4th quarter compared to same period last fiscal year
- Net income of $1.5 million compared to a $1.4 million loss from the previous year, and an increase of $2.9 million net earnings
- Cash and cash equivalents of $1.6 million compared to $0.1 million from the previous year (a 1,369% increase), and a 400% increase from last quarter. mCig generated $2.1 million in cash from operating activities
- mCig assets increased to $6.8 million, having 6 times more assets than it does liabilities
MCIG has established 4 targets for FY2018 in which to measure its performance. Our collective strategy aims to:
- Take Aggressive steps to increase revenues and profits.
- Reach 1 million active combined customers across all MCIG segments.
- Spin-off one subsidiary into a publicly traded company, offering a share dividend to all MCIG shareholders.
- Strategically enable company to conduct business in diversified sectors, both inside and out of the cannabis industry.
GROW CONTRACTORS
Grow Contractors (GC) was MCIG's fastest and largest growing segment in FY2017. GC generated more than $1.1 million in working capital for MCIG in FY2017.
GC has successfully completed its first two contracts, Sin City and Green Leaf Farms. GC's talent and ability to consult and construct, has made our partners capable of meeting deadlines for "fast-track" recreational licenses. Both partners have received their official State Certificate of Occupancy to allow them to begin growing cannabis. GC continues to consult for both groups and is working on hiring and building added partnership opportunities in addition to construction. Solaris and Forest Grove projects are full steam ahead and expected to finish Phase I by September. GC also completed various smaller projects in Washington and Oregon in FY2017.
While GC has expanded operations outside of Nevada, Nevada continues to remain its focal point state, and will continue to be in FY2018. With recreational cannabis sales starting in Las Vegas on July 1, 2017, the entire market is abuzz with energy. GC has received more requests for grow consultations in the last 2 months than it has in the past two years. Projects continue to line up as demand remains increasingly strong. With 45 million tourists, higher discretionary spending, and being able to purchase cannabis with the simple requirement of being 21 years of age, Nevada is expected to top Colorado revenues and historical growth patterns. With the growth potential of the recreational cannabis market emerging in Nevada, GC is well positioned for construction and consulting services in the state of Nevada for many years to come.
MCIG will continue to update the market and shareholders of GC 's progress through social media (Instagram, Facebook), and our websites (growcontractors.com, mciggroup.com). We believe GC has an early adopter advantage and large growth potential in Nevada, which positions the company for facility management opportunities and owning our own profitable grow in future.
CANNABIZ SUPPLY
MCIG continues to develop and strengthen its cannabis supply venture, Cannabiz Supply. The revenue for this division (100% owned by MCIG), continues to double month over month. The business has grown in various areas -- selling state mandated and custom packaging, office, dispensary supplies, and vape products. The company has gained multiple accounts with distribution to every dispensary, major grower, and production facility in the state of Nevada.
MCIG will continue to foster and grow this division, and once established and perfected in Nevada, the company plans to expand into a national cannabis supply and distribution company. "The growth of the cannabis industry is unparalleled to anything I have seen in my 45 years in business," states Cannabis Supply, CEO, Charles Fox, "and Cannabiz Supply is poised to be a major player in the packaging and supply side every step of the way."
GIGESOFT
In April 2017 MCIG launched 420cloud.com, a mobile application available on both Android and Apple devices. A web browsable version of 420 Cloud is planned for release in the next 3 months. During the forecasted period, new areas of the application will be released and will expand on user connectivity, user experience, premium features, microtransactions, payment wallet, advertising network, additional websites connected through the app menu and expansion to user shopping through the 420 Tienda marketplace.
MCIG considers this project to be long term and ongoing, that will produce strong intellectual property and assets, while continuing to build and enhance our cannabis job listings, weedistry 420 news, cannabis social media, and more. Owning our own tech platform opens many opportunities for future growth.
The user base continues to grow with currently over 25,000 active users. The company expects exponential growth as more features are rolled out in the coming months and as the app starts to be promoted through our various marketing channels. In the very near future 420 Cloud will also become the primary source of information and updates concerning MCIG and its business. MCIG will rely extensively on Gigesoft to achieve its goal of reaching 1,000,000 customers in FY2018.
MCIG anticipates revenue in FY2018 from advertising, microtransactions, payment processing, and retail sales through the new platform.
For updates, visit us on social media (Instagram, Facebook, Twitter), and our websites (420cloud.com, weedistry.com, 420jobsearch.com, and mciggroup.com).
VITACIG
Since our acquisition of the e-Cig business in June 2016, MCIG revenue has grown to $1 million annually. With more than $5 million in guaranteed contracts over the course of the next two years, MCIG will continue to see growth in the e-Cig market. During FY2017 MCIG has expanded intellectual property, trademarks, and patents (where applicable) throughout Europe, Australia, South America, and the Asian markets.
With distributors and partners across the globe, we aim to double our current $1 million revenue this year. We are proud to announce the close of another International contract for the territories of Australia and New Zealand, valued at a minimum of $1.0`million in guaranteed orders. Our Japanese partner's success has been tremendous since their launch around this same time last year. Building on this success, with over $1.0 million invested into the VitaCig brand to date, we are proud to announce that both parties agreed to expand their original contract to now include Eastern and South East Asia, adding an additional $1.5 million in guaranteed orders. Our focus on aggressive international expansion for VitaCig and VitaStik brands continues to pay off. Our next target market regarding international distribution is now focused in the Middle East, where we are currently in talks with potential partners from Israel, Iran, Lebanon, UAE, and India.
Company and Investor Updates
MCIG recently enhanced its corporate website, www.mciggroup.com, to provide investors with an update of its recent endeavors, company outlook, and market value. The new website is designed to help increase shareholder value by enabling investors to easily sign up for updates and research, sharing information and updates, and driving more engagement for potential acquisitions and sales of MCIG products and services.
"This is an exciting time for MCIG GROUP. We continue to increase value for our shareholders by focusing on acquisitions, establishing new profitable divisions and expanding our operations in diversified sectors. We expect FY2018 to be a great year for MCIG," said Paul Rosenberg, CEO of MCIG INC.
For updates, visit us on social media (Facebook, Twitter, Instagram), our parent website mciggroup.com, or download our app at 420Cloud.com, planned for shareholder updates in the near future.
About MCIG Group (
Headquartered in Henderson, Nevada, mCig, Inc. (
mCig, Inc. also employs a world renowned tech team and has recently entered the tech space to satisfy its evolving role in technology and in keeping it's growing following up to speed.
The company looks forward to growing its core competencies to service the ancillary legal Cannabis, Hemp and CBD markets, with broader expansion to take place once federal laws change. With over seventy five years of experience combined between the key players that make up the Cannabis Grow Contractors Division, mCig Inc. is proud to work with Cannabis Industry leaders and provide broad and rounded solutions for legal growers nationwide.
About the 420 Cloud App
The 420 Cloud app features a useful and unified cross-channel platform comprised of numerous layers of subscriber functions and behaviors, an immersive experience extremely useful for networking and learning, a technically robust 420 cannabis jobs search system (420jobsearch.com), marijuana news media platform (weedistry.com) and integrates a commerce networking platform, strengthening reach and exposure throughout it's various channels. The platforms feature a full scale, cross-channel, ad network, spread throughout an enterprise of intuitive systems, scalable for high traffic and utilize big data conversion for monetization and analytics. The app plans to create revenue through gamification, advanced functions, features and micro-transactions, along with ads and partnerships with dispensaries.
The successful app market has grown from $45 billion in 2015 to $76 billion in 2017, and the marijuana market totaled $6.7 billion in 2016 and growing according to Forbes. In addition to current endeavors with large scale marijuana grow construction (growcontractors.org), mCig, Inc.'s alignment with these growing industries can greatly benefit the company's growth and revenues.
For more information visit our websites:
mciggroup.com
growcontractors.com
420cloud.com / www.420.cloud
420jobsearch.com
weedistry.com
cbd.biz
vitacig.org
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 contains a non-GAAP disclosure, EBIDTA, which consists of net income plus interest expense, net, provision for income taxes and depreciation and amortization. This term, as the Company defines it, may not be comparable to a similarly titled measure used by other companies and is not a measure of performance presented in accordance with GAAP. The Company uses EBIDTA as a measure of operating performance. EBIDTA should not be considered as a substitute for net income.
Contact Information:
Contact:
Paul Rosenberg
CEO
paul@mciggroup.com