mCig, Inc. to Report Record Adjusted Earnings on Record Revenue Increase of 1,100%
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.
