Bots Inc (BTZI)

[lesgetrich]

Putting your purely negative spin on things again...

it was the most recent quarter that shows how construction outright tanked.

The company went through a major reorganization during 2FQ18. Executing on construction (i.e. performing the actual construction with its own employees) was not producing the desired profit margins. The company decided to shift focus to management of facilities and construction projects. The new business model allows the company to still book the same construction revenue while reducing or eliminating risk from construction cost overruns and at the same time adds profits and additional revenues from facility management and operations...

mCig Expands Construction Project Portfolio and Wins an Exclusive Contract in California, Valued at $5M

"Our Grow Contractors division was very busy in the last few months, finishing old construction projects, bidding on a new ones, and most importantly, changing its business model. The division took some time to restructure and clean up past projects, including canceling some non-performing operations in order to move forward. We look forward to our expanded presence in California and more to come. Expect many more construction, management, and exclusivity announcements from Grow Contractors," stated Paul Rosenberg, CEO of mCig Inc.

The new business model includes new divisions...



The Construction Division now manages the bidding, engineering and construction of the customer's facility.

The Grow Division staffs and manages the facility and takes a cut of the operational profits. It will also manage new mCig facilities, including the one being constructed in California City.

The Industrial Hemp Division will manage NYAcres and any future hemp cultivation projects.

The Packaging/Supply Chain Division will manage packaging/branding for wholesalers and dispensaries as well as deliveries.

The Subscription/Ecommerce Division will handle online sales as well as Vitacig, CBD and Cannabis products. CBD Sales will grow exponentially once NYAcres is in production and Vitacig may be sold off in the near future...

MCIG Shareholder Update - CEO Defines Direction of the Company

MCIG still owns 2 brands: VITACIG AND VITACBD. In 2017, we sold 80% of our VITACBD brand to another public company, which we continue to have a small ownership position. Recently, there has been interest from some big players in the VAPE industry to acquire our VITACIG brand. We are currently considering all options.

Kind of hard to actually sell construction contracts when one doesn't even have a general contractors license in ANY state.

mCig is a Construction Management (CM) company and is not required to have a General Contractor's license

It seems it's not so hard at all...

In addition to the $5 million project in San Gabriel Valley, CA...

The buildout is valued at over $5M with exclusive rights having been granted to Grow Contractors for the entire construction project. The cultivation area alone will be 22,000 square feet with over 500 flowering lights.

In conjunction, extraction is expected to match cultivation revenues. Cannabis extracts make up a huge portion of the marijuana market accounting for about one third of all marijuana sales. The extraction lab will primarily be equipped for the production of distillate and for the filling of vape pen cartridges. In total, the facility will produce over 100 separate SKU's. Distribution will also be contained within the facility as a service to facilitate delivery to retailers, with a fleet of vehicles and drivers maintaining a logistics backbone to service the entire Southern California region.

mCig has also signed up a new facility in Florida...

mCig’s Subsidiary, Grow Contractors Inc., Announces it has Secured an Exclusive Management and Construction Contract With a Client and Property in Florida; Paves Way to Expanded Presence in Florida

mCig’s Subsidiary, Grow Contractors Inc., Announces it has Secured an Exclusive Management and Construction Contract With a Client and Property in Florida; Paves Way to Expanded Presence in Florida...

...The client is a long-time agricultural expert with over 22 years of greenhouse hydroponic vegetable production experience, which is one of the required state licensing criteria. Grow Contractors has been contracted to complete operational planning activities, provide engineering and design work for the production and extraction facility, assist with city construction permitting, and help with the competitive state application. Upon the client being awarded a state license, GC will be further retained in the facility management process where the consulting firm will provide facility staffing solutions, a customized set of operational workflow procedures, and remote operational monitoring support for a percentage of the net profits. GC expects to leverage this contract to secure additional revenues through long-term consulting agreements and future sales of ancillary products, as the client is looking to seek licensure for the Florida recreational/adult-use cannabis program in the near future and branch into retail store-front locations.

...and another one in Palm Springs...

https://www.otcmarkets.com/stock/MCIG/news/story?e&id=1018317" rel="nofollow" target="_blank" >https://www.otcmarkets.com/stock/MCIG/news/story?e&id=1018317[tag]mCigs Subsidiary, Grow Contractors Inc. Announces it has Secured an Exclusive Management Contract With a Client and Property in Palm Springs, CA, Paving the Way to an Expanded Presence in the State
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Grow Contractors (GC) division has secured an exclusive extraction management contract with a client in Palm Springs, CA.

This facility is eight thousand square feet and will primarily focus on subcritical ethanol extraction. The new state of the art facilities function will be the standard process of distillate extraction used in most disposable vape pen varieties. Further refinement will be done by the fractionation process to produce a substance with a much higher cannabinoid purity. This distillate is easier to use in preloaded vape pens and does not require any cutting agents other than natural cannabis-derived terpenes to add flavor.

Gross profit projection for the facility is ten million a year with eight percent of net profits going to Grow Contractors. There is a sixty percent profit margin for most extraction facilities.

"This facility is the first of our conquest in California," commented Rob Kressa, CEO of Grow Contractors Inc. "The next facilities in Sacramento and Los Angeles will be coming online very soon with much more to follow.

Consequently we now see $15 million+ in new signed contracts for Grow Contractors. Prior to the reorganization, Grow Contractors had confirmed signed contracts of around $10 million which were largely completed over the past year. As these are new contracts we may not see much revenue from them in the nexts 10-Q which covers the period from 11/1/17 thru 1/31/18. However they ensure that the company will have another record breaking year for fiscal 2019 (thru 4/30/19). This doesn't even include another $3 million from the supply division...

mCig, Inc. Reports A Substantial Increase in Sales of Its Cannabis Supply Division

...Cannabis Supply division signed an agreement with one of the largest cannabis brand valued at $1 million...

...“We are extremely happy with the progress of our Company in California. Based upon historical numbers and the introduction of recreational cannabis in California, we anticipate more than $3 million in sales of our cannabis supply products coming from our California office in the next 12 months.

...or another $4 to $12 million from NYAcres...

NYAcres expects to harvest 1,000 to 1,500 plants per acre of the initial farmed 40-acres in its first harvest, with 80-acres planned for the second harvest. Rotation of the acreage-parcels will add balance to the farms nutrients, assuring the best soil conditioning. This translates into approximately $100,000 per acre in revenue, or a projected revenue of more than $4,000,000 for the first harvest. Should we be able to plant second crop this year, expanding to 80 acres, we will gross $12,000,000 in revenue in the first two crop seasons. Net proceeds not reinvested in infrastructure and expansion of services will be distributed 80% to MCIG and 20% to FarmOn! Foundation. With a total of 180 acres of farmable land, the NYAcres Project seeks to reach $35 million annually by year three.

So adding it all up...

$15 million+ from Construction and Grow Divisions
$4 to $12 million from Industrial Hemp
$3 million from Supply

We get a total of $22 to $30 million in revenue projected for FY2019 up from roughly $10 million for FY 2018.

Debunked Once More!