Bots Inc (BTZI)

[lesgetrich]

I didn't say fake sales force - Provide a link that says I said "fake". I said that they don't have 90+ "boots on the ground". Those were Paul's words. I think Paul made up that number, merely adding the salespeople from their partners...lol. MCIG doesn't have 90+ salespeople in MCIG's corporate payroll as an employee or contractor.

ROTFL You want to argue semantics? You try to deny something while proving the opposite. So are you arguing that if mCig contracts with a contractor who has 25 sales reps working for them to sell any products they bring to the table, it's not the same as if they contracted with 25 separate independent sales reps? Of course, all of them are partners whether as a group or individually - and now we're about to see that in their first complete three month quarter at full force, they've produced over $800,000 in revenue. From Paul's interview...

An Exclusive Interview With mCig CEO Paul Rosenberg

LM: What happened to the two national distributors you announced you were negotiating with in your 3/5/15 PR? [See: mCig Inc. Receives $1.2Million+ Record Order for CBD Products; Finalizing Distribution Agreement With More Than 1000 Retail Outlets.] Is that deal dead, on hold or still in negotiation. Did those deals conflict with the new plans for sales channels or territories?

Rosenberg: These deals are good and we have more now. Online master deals feeding wholesale leads is an attractive combination for any sales side cycle. Large distributors despite lower margins are necessary also. Online (biggest margin), direct to stores (boots on the ground), and distributors (with call center support) are the 3 levels of sales and profitability that are drivers of total revenue lines and product sales. We are building out the central call center to compliment online with wholesale needs and leads. Maury's boots on the ground are driven from mCig wholesale leads and call center needs. This sales approach has yielded good results and as new product lines develop boots on the ground will be more useful for selling products that require a more face to face approach. Further segmenting those sales efforts will keep the model focused and expanding. [Note: See "Follow Up & Analysis" for more.]

LM: What's the current strategy for getting mCig products into convenience stores, smoke shops and dispensaries?

Rosenberg: See above. Plus direct mailers.

LM: What is the nature of your relationship with JCP wholesale and are they on track for their $1 million contract?

Rosenberg: They are one of several sub-distributors and yes they are on track.

You think JCP is less effective because they are under contract as a group vs individuals? - Apparently not!!!

also...

LM: How many sales reps does mCig currently have? Can they sell the complete line of mCig and VitaCig products and services or are some of them specialized to certain market segments or product lines?

Rosenberg: We are a sales channel for innovative products. We have 95 boots on the ground, a developing call center, and yes they are segmented. Grow services and consumer products. We have a developing high tech sales segmentation (currently 10 reps) and a small pharma sales segmentation (currently 5 reps). The most skilled cross all sales efforts.

LM: How many W2 employees does mCig currently have? How many shares have been distributed to employees, consultants and management and are they restricted?

Rosenberg: This is a large part of the reductions you will see in Q2 numbers. We deal mostly on a consulting basis. 7 top line execs, 11 consultants, 95 sales domestic, and 20 plus international sales partners.[Note: See "Follow Up & Analysis" for more.]

and...

He also cited the fact that their sales organization is growing and now has 12 sub-distributors including a major national distributor as well as subs in Georgia, Florida and Texas. When we tell our small prospective sector MDA partners that we can now market to over 100,000 leads, it is a huge motivator. It gives meaning to our catchphrase, "Powered by MCIG"

.

As for the Ultrasonic Atomizer, a lot of things may seem impossible until someone actually does them...

LM: You indicated in a recent PR that with the new Master Distributor approach to sales, you no longer needed to do R&D. Does this mean you've abandoned all current R&D efforts or simply that you won't be undertaking new ones? Which R&D efforts, if any, have been abandoned?

Rosenberg: We have smartly gone from Vape pipes to CBD pens. We have the ultrasonic v2 which is finished and close to a hardware partner. We still support developing products for sale with large and specialized producers that have no retail sales channels. Our newest brands are the best, most desired products in the industry that cannot be copied easily like Chinese made Vape pens. Innovation and growth with solid core products is the correct model.

and...

LM: The Ultrasonic Atomizer was originally designated to be sold under VitaCig. Which company will the product actually be sold under?

Rosenberg: We are a few month away, and we will have partners to help us not only to finish the product, but bring it to the market. Very important and unique project. It will be an mCig product but available to both companies.

LM: Could you offer an update on LiqCig? Will the product be offered through mCig or VitaCig?

Rosenberg: Basically, we can use Ultrasonic Technology. I tried it a week ago, we have a working prototype. It works.

As for their $7 to $10 million revenue projection,

LM: Are you still targeting $7 million to $10 million revenue for FY2015 and do you still think that that's conservative. If so, what makes you so optimistic? What can you tell us about current revenue? Which initiatives are currently generating revenues (e.g. extractors, construction, CannaPods, software, etc.)

Rosenberg: We keep that as our internal target but realize that this number was not based on our current growth path. Chill is our number one seller right now and, together with Cannapods and construction revenue alone, we can get there. New masters have gone into sales and new announcements to come should please investors as they see steadily increasing revenues. [Note: See "Follow Up & Analysis" for more.]