MCIG Releases Third-Quarter 2016 Financial Results, to Report 283% Increase in Quarterly Revenue Over 2015
HENDERSON, NV–(Marketwired – Mar 23, 2016) – mCig, Inc. ( OTCQB : MCIG ) updates investors on financial results and summarizes some of the key highlights for Q3 2016.
Third-Quarter 2016 Highlights:
- Revenue increased 283% and expenses down 83%, comparing three months ended January 31, 2016 and January 31, 2015.
- Revenues up 339% and expenses down 49% comparing nine months ended January 31, 2016 and January 31, 2015.
- Although expenses from the previous quarter were down 74%, revenues remained on steady path of beating year over year numbers.
“Last quarter mCig, Inc. was the product of its own success. As numbers began to grow and revenues started to get larger, we, along with many other players in the industry, faced problems with merchant accounts as payment solution providers questioned involvement in the Cannabis industry,” said Paul Rosenberg, CEO. “We were able to use a temporary payment solution, but it led to delays in reporting by explaining the intricacies of our business and loss of some sales. We have implemented a new payment solution that should come on line in the next few weeks, and have resolved all of the payment issues we faced. As we branch off farther into larger revenue streams in the Cannabis sector, having payment processing partners that understand our business become more significant.”
Because of the size of revenue in the Grow Services Division, it was necessary for the stated reasons not to mix the CBD brands or the new THC brand with construction revenues. This was the main reason we established Scalable Solution LLC, a whole owned subsidiary of mCig, Inc.
Here is a summary of projects that Scalable Solution, LLC is working on with anticipated time frames of completion:
Evolution Designs Washington freestanding facility:
- Phase#1 $100,000 completion Q4 2016, Q1 2017;
- Phase#2 $500,000 completion by Q4 2017.
Green Leaf farms 30,000 sq.ft. warehouse conversion North Las Vegas Nevada facility:
- Phase#1 $750,000 1/3 build out completion Q1 2017;
- Phase#2 $750,000 2/3 build out Q4 2017;
- Phase#3 final build out $750,000 Q2 2018.
CSNLV cultivators and production facility 6,500 sq.ft. warehouse conversion North Las Vegas Nevada
- $380,000 full conversion completion Q1 2017
Not Been Yet announced
Consulting Cultivation and production greenhouse free standing buildings in North Las Vegas Nevada, $120,000 in consulting fees:
- Phase#1 80,000 sq.ft. greenhouse and 15,000 sq.ft. operational structure valued at *$5,000,000 1/3 finished by Q3 2017 and full build late fiscal 2018.
*MCIG will attract approximately 50% of the actual building and equipment sales, while local GC’s the rest.
Cultivation in Henderson Nevada warehouse conversion with $4M dedicated to operational and construction budget:
- Q1 2017 should see a phase one build out of a 12,000 sqf facility and possibly attract $600,000 contract portion that phase with total around $2m over the 2017 fiscal year.
“Establishing ourselves as experts in building has been our goal the last year and we are showing to investors that we are seeing offers to be part of Large-scale grows and cultivations on an ownership level,” said Paul Rosenberg. “Sorting through these offers and picking the right opportunity for steady revenue streams will be the goal for the next quarter. The more we are constructing, the more relations we solidify and those experiences are now generating incredible flow and will continue to do so in the future.”
The addition of Rollies Brand to our product line is a huge opportunity for mCig to enter the THC market. Starting in our home state of Nevada, we are planning a national expansion of the brand during fiscal year 2017. We will be focusing at the beginning on the marijuana cigarette product line, with the addition of a THC Vape Pen to our line of THC based products. mCig’s previous experience with bringing to market a new CBD product line will help contribute to another considerable source of revenue for the company going forward.
“I am very happy with the direction we are taking and mCig is determined to grow along with our business model. The formula is simple: Scalable Solution LLC — Consulting and Construction Services being the main revenue source; Rollie’s LLC — THC brand with the potential to expand to multiple states across the United States; and mCig CBD division — a distribution channel for CBD-based products,” stated Paul Rosenberg, CEO of mCig, Inc.
About mCig, Inc.
Headquartered in Henderson, NV, mCig, Inc. ( OTCQB : MCIG ) is a leading provider of advanced technologies and solutions to the global cannabis industry. mCig manufactures and markets best-selling portable and home vaporizers, extraction related equipment, CBD Rich Hemp Oil-derived products, and related nutraceuticals based on natural compounds found in Cannabis and Hemp plants. The company owns the mCig and Vapolution brands, and has a 47% stake in VitaCig (VTCQ), makers of the VitaStik, a disposable vitamin vaporizer. The company believes that a well-regulated marijuana industry is emerging as more states follow the lead of Alaska, Colorado, Oregon, and Washington in legalizing marijuana. A similar trend is developing within the CBD and Hemp industries following overwhelming consumer demand.
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.