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OTCQB MCIG: BIG THINGS DO COME IN SMALL PACKAGES PART 3 - SUMMARY UPDATE

Oct. 25, 2014 11:31 PM ETBTZI, VPOR, WCIG, VAPE18 Comments
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It's A Bird,,,It's A Plane,,,It's,,,,,,MCIG, Inc.!!!

MCIG is moving faster and accomplishing more than anyone can keep up with. So I decided to offer a summary update to help keep those interested informed. MCIG is a clear standout among it's peers on the otc. Such as Vapor Group(OTCQB: OTC:VPOR), Wee-Cig(OTC: OTCPK:WCIG), or VAPE Holdings(OTCQB: VAPE). And one of the hottest stocks in the sector.

MCIG Summary Update As Of October 25th 2014

The most recent financials, the company reported Revenue for the three months ended July 31, 2014 of $195,565, which represents a 1,500% increase when compared with revenue of $12,500 over the same period in 2013.

The company reported Gross Profit Margin of 50.18% for the quarter ended July 31, 2014 maintaining its gross profitability in line with prior quarters. This figure does not reflect the recent price increase of both the mCig(R) and VitaCig(R) which the company believes will contribute to an increase in Gross Profit Margin in subsequent quarters.

The company also reported a significant decrease in accounts payable and total liabilities. For the quarter ended July 31, 2014 these stood at only $6,943 while the share count remained the same at 270,135,000. The company continues to grow its operations without incurring any dilution or toxic debt.

The company is now represented through new online distribution lines in South Africa, Central Florida, Albany, and Washington. And continues to expand it's retail reach all across the nation. Lasermycig.com is another authorized distributor with the capability of inscription and the design of your own mCig and VitaCig.

lasermycig.com/

The Company strengthened its intellectual property portfolio with the trademarks for mCig, VitaCig. From this point forward, all company products will include the ® symbol reflecting the company's commercial ownership of these brands.

The Company raised 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.

MCIG released an updated version of the mCig, the mCig 2.5, and raised the price to $15. The mCig(R) 2.5 comes in two new colors: Metallic Blue or Red and includes a rechargeable 360 mAh battery, stainless steel chamber, silicon mouthpiece, USB charger and cleaning tool. Unlike the mCig 2.0, the 2.5 includes a default glass/ceramic chamber for dry herb. The 2.5 features a newly redesigned and more robust power button for discreet use in low-light environments. The silicon ring on the 2.0 has been replaced with a stainless steel ring giving the 2.5 a sleeker appearance.

The Company reported 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. The company submitted what should be their last S-1 filing on October 16th, with only two comments that needed to be addressed. The sec may respond to that S-1 as early as the end of next week. So if anyone wants a 1:1 Vitacig Dividend, I suggest you take a position ASAP. Remember it takes three days for a trade to settle so you are on record as a shareholder.

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.

MCIG officially Unveils Next Generation Vapolution 3.0 Vaporizer.

www.vaporizerwire.com/15674/vapolution-3-0-unveiled-mcig-inc/

VitaCig launched two new flavors, Tonic and Flora targeting. Both flavors will go on sale for $5 each and will increase the VitaCig portfolio of flavors to seven: Energize, Refresh, Relax, Calm, Grace, Tonic and Flora. As well as recently entering the Open Vaporizer Market Launching E-Liquids and offering a new advanced device for vaporizing. VitaCig has updated it's website to integrate all of it's product lines.

www.vitacig.org/

The VitaCig Truck saw overwhelming acceptance within the community. Beyond driving sales, the truck helped educate 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 was seen in New York City, in places such as Yankee Stadium, Madison Square Garden, and Union Square. The VitaCig reportedly took in $1k -$2k a day during it's month long treck.

i.dailymail.co.uk/i/pix/2014/08/08/article-2719490-2058EDB600000578-195_634x946.jpg

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, and Jonathan Cheban.

www.thedishh.com/puff-puff-pass-the-b12-it-s-time-to-smoke-your-vitamins

www.youtube.com/watch

instagram.com/p/uMFF_XSg6G/

And Jordan Young, AKA, D.J. Swivel, has taken on the role of Director of Marketing and Sales.

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 hired Dominic Murphy, as an Executive Consultant, maker of DOM Juice, which makes a flavored THC formula.

mCig(R), Inc. Forms Colorado Subsidiary mCig CBD Technologies, LLC. for the purpose of designing and manufacturing a new line of products that will leverage the VitaCig technology for delivery of Cannabis plant derivatives.

mCig(R), Inc. and Omnicam Execute Landmark Distribution Agreement for VitaCig(R) Covering South Korea - Company Raises Full-Year Guidance. The VitaCig product will be available to start in over 160 Stores, and received it's first purchase order totaling $350,000.

2015 will continue to demonstrate MCIG's innovative and aggressive pathway in becoming one of the top E-cig/Vape companies in the space, through the highly anticipated LiqCiq product unveil, disposable and recyclable, pre-packaged eCig's, with licensed alcoholic brands, as well as the Rick Ross Mastermind mCig.

For those interested why the upcoming VitaCig spin off, CEO Paul Rosenberg offered these sentiments earlier this year,

Quote,

" I am confident that this move will result in mCig, Inc. being the first company in the "Marijuana Index" to qualify for an up listing to NASDAQ Capital Market or NYSE Euronext MKT, LLC exchanges. We have always stated that this was one of our objectives and we will strive to achieve this goal over the course of 2014 or 2015," said Paul Rosenberg, Chairman & CEO of mCig, Inc. "

Quote,

" as my decision to contribute dividend-rights to 244,931,627 shares of VitaCig will result in a significant increase in assets. Following the listing of VitaCig, we will be in a unique financial position amongst our peers with zero debt and potentially millions if not tens of millions of dollars in shareholders' equity. These shares will also provide mCig, Inc. with the ability to raise capital while incurring no dilution by liquidating shares of VitaCig if we so desire. "

Following the VitaCig spinoff, and with their core product lines complete, they will have the capability to raise significant capital to further expand it's reach into the multi-billion dollar E-cig/Vape market, and have enough capital to really penetrate the online search arena, which is the only thing really left for them to do. Again, MCIG will retain 49% equity stake.

Summary Conclusion

Despite MCIG's high valuation, roughly $71M market cap, the company has minimal liabilities and an o/s count that has barely been touched all year. Both points, which is extremely rare on the otc. MCIG branding power is second to none among similar companies over the otc and has possibly the most shareholder friendly management team as well. Zero toxic debt and no dilution to boot. MCIG is currently trading way belowit's 52-week high of $.92 recorded last March. There is some speculation MCIG is in talks with a large retailer to carry their VitaCig product. Considering VitaCig has zero nicotine, just vitamins + vapor, VitaCig can practically be sold anywhere, such as a Walgreens, Right-Aid, Walmart, Kroger, 7-Eleven, Major Gas Station Chains, Smoke Shops, and Hospitality Companies, sky is the limit for this revolutionary and unique product. In MCIG's last P.R., discussing the South Korean deal, CEO, the company stated,

Quote,

" Over the past six weeks, mCig and VitaCig management have been on the road in Italy, Spain, Mexico, Asia, and Europe meeting with several potential partners. Management believes the Omnicam agreement is likely the first of many country-wide deals to be announced over the next few months. "

Their sleek, new designed packaging is extremely attractive and consumer friendly.

twitter.com/VitaCig/status/525473139535654914

MCIG certainly stands out as a viable buy out candidate. Early this year, Altria acquired Green smoke for $110M. And Lorillard Inc. acquired Skycig, UK, for $50M and Blue E-cigs Inc, for $135M last year.

And the E-cig market continues to see substantial growth. According to the 2014 Report on the U.S. E-cigarette Market - Forecast to 2018, published in May, their analysts forecasted the E-cig market in the U.S. will grow at a CAGR, or compound annual growth rate of an astounding 24.22 percent over the period 2013 -2018. Bonnie Herzog, a Wells Fargo Securities analyst, estimated earlier this year, that overall E-cig industry revenue reached $2 Billion in 2013. She projects it will increase to $10 Billion by 2017. So here we have a company that is in the right industry, at the right time.

If one is going to play this sector, where they are all overvalued, I would rather invest/trade MCIG. It is one of the few companies in penny land that I would feel comfortable holding overnight. I like the upside at these levels going into what many expect to be an exciting time for the cannabis sector, as November Elections draws near.

Happy Trading

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

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