Replies to post #7911 on Omni Health Inc (OMHE)

[HeedTheChief]

I wonder if people actually read the source
material.

It doesn't say, expect, the P.R. says,

Quote,

" We project to record $3.5m - $4m in revenues by year end. "

When companies project revenue numbers,
they are expected to hit those numbers.

Not sure why you impose Paul's prior
MCIG projection, with Germany CEO Johannes
Luis, who has done nothing but walk the talk.

[HeedTheChief]

I love the " worst case scenario 1% ", and
" it could be a measly 1% ".

Where are you getting this 1% figure
from, lol?

How do you know it's not the best case
scenario?

Pure speculation.

On the distribution deal, no one sells
$200k worth of product, to get a 1% return.

On the royalty agreement, no one negotiates
for months, and settles for 1% royalty.

The P.R. tells us VitaCig will receive 25%
on one of their products.
So, to insinuate the scale starts at 1%
is baseless and illogical.

[lesgetrich]

Expecting 3.5-4 Million" From VitaCig EU is a FORWARD LOOKING STATEMENT - meaning it has not been realized and VTCQ is protected by safe harbor laws should they fail again like with the "Conservative $7-10 Million" that MCIG was expecting before. Not even close on that one.

PR's by all companies are protected by safe harbor. The question is do readers believe management statements or do they believe anonymous posters.

The $7 to $10 million projection was based largely on construction and pod revenue where there is $6.5 million plus in the sales pipeline. Construction has a long sales cycle and the pods were not available until mid September. We should start seeing some of that revenue this quarter.

The first order of $200,000 also has not been submitted or even completed/sold.

The same accusation was made about the $200,000 Globe CBD order, but it was booked last quarter as anticipated.

up to 25%" - doesn't mean diddly. For all we know, it could be a measely 1%

Pure fantasy. As Heed has pointed out, no one negotiates for a 1% contract and then announces up to 25% royalty. You have varying royalty rates based on product lines. No company breaks down royalties and commissions on every product in their line for competitive reasons. To criticize mCig for this is ridiculous.

If it were a large number, it would affect the retail cost of product to EU customers - and would price them out of the market for similar products overseas. Pretty hard for VitaCig EU to make much money if they're only operating off an 11% profit margin like VTCQ USA.

The mcig profit margin last quarter was skewed because Paul front loaded some one time expenses into the quarter (e.g. the final 2,500,000 shares for the purchase of vapolution and stock compensation). No one knows the actual profit margin by product since that information is not published. In any event, 11% was the profit margin for mCig not VTCQ. Looking at the last VTCQ 10-Q, they had $12,000 revenue with $8,000 gross profit for the quarter. That's a margin of 66.6%. Consequently, the above statement is pure fantasy at best and intentionally deceptive at worst.

VitaStik product doesn't appear to be covered under new VitaCig EU 3 year contract. Likely means VitaStik being sold under old contract; which means VTCQ USA gets ZERO.

Again, there is no proof that a prior contract even existed. Also, if you read the entire PR in context there is no way to come to the conclusion that VitaStiks aren't covered.

Following several months of negotiations, VitaCig U.S., and EU Vitastik Partner, has reached an historic agreement that will entitle VitaCig U.S., to significant royalty payments of up to 25% of all product sales. This agreement will include territories and partners throughout Europe, including UK, Austria, Switzerland, Spain, Italy, covering a population of 745 million people. Spear headed, and managed by Vitastik EU CEO, Johannes Luis. According to this agreement, all product orders from Vitastik EU and their partners will go through a special EU VitaCig account. The term of this agreement runs effective January 1st 2016 - December 21st 2019. Thereafter, the agreement shall be renewed for an additional one-year-term, upon consent of both parties.

In addition to royalty payments, Vitastik EU will also take an active role in supporting our highly anticipated VitaCig product line relaunch, expected by March 1st, for the U.S. market. Not limited to, a fully mobile responsive, website design, a T.V. commercial, SEO, and Google analytics. This will well position us to experience unprecedented sales growth for 2016 and beyond.

VitaStik EU CEO Johannes Luis Schmid comments, "This strategic partnering agreement between US and EU is a huge milestone for both companies. There is strength in numbers. Our goal together, is to unite the brand, and build an empire. Dominate the disposable e-cig space. My team and I have built a solid foundation in 2015. We continue to experience record revenue growth monthly. Our re-order rate of 45%, is at an all-time high. We project to record $3.5m - $4m in revenues by year end. I look forward to contribute what has been working for us, and infuse into the U.S. market. I look forward to many years working together."

VitaCig CEO Paul Rosenberg adds, "This royalty agreement demonstrates the dynamism and value of our VitaCig brand. There is truly no other product like it on the market, and continues to see tremendous success abroad. The EU Partner agreement is part of a comprehensive effort by the company to lock-in international distribution and royalty agreements. Our vision and strategy for VitaCig is simple and clear. Dominate both the e-cig disposable, and CBD markets, on a global scale.

It's clear that the contract includes e-cigarettes as well as CBD products

Korea still operating under old, likely 3-5 year contract; in which case VTCQ USA gets ZERO.

As I pointed out previously, any prior contract with Korea was rendered null and void when Korean customs refused entry of Vitastiks into the country because they couldn't be classified as e-cigarettes due to a lack of any nicotine. Since then, Korea has been ordering components directly from the Chinese manufacturer and assembling the product in Korea. The new US asian trade agreement may have resolved this issue. In any event, this complicates the negotiations. There are also questions about whether Korea and other asian nations allow sale of CBD products. Once these issues are resolved there will be a new contract with the Korean partner.

Relaunch of VitaStiks domestically will be a failure again. No smoking cessation program in sight.

E-juice is a product. No product company launches a smoking cessation program (you expect they'll be tracking smokers and giving them advice LMAO). Like other e-juice companies, VTCQ has announced they will offer nicotine juices in varying strengths and have targeted this for release in February.

THC products being doled off to Blanks - where are the products that VTCQ/MCIG said was already ready for marketing and sales?

SEC rules prohibit listed companies from selling federally illegal substances. Since MJ is still an illegal substance, it probably means that THC products will initially need to be sold by a separate entity of which mCig would be a part owner. If/when MJ is reclassified by the feds, mCig will be in an envious position to profit from the new rules.

Next VTCQ financials will be interesting to look at. Will they be as bad as the last quarter released?

With only $12,000 revenue last quarter, I'm sure VTCQ has already beat that by a mile just on VitaCBD juice alone. Assuming the initial $200,000 EU Vitastick order ships this quarter we should see revenue of around $300,000+ on the next 10-Q.