mCig Inc (OTCBB:MCIG) Jumps, Company Expands
mCig Inc (OTCBB:MCIG)’s stock went through some intense trading when they announced the launch of the second version of their personal vaporizer on January 10. Three sessions of heavy volumes and tasty gains saw the ticker move from around $0.13 all the way up to $0.23.
Over the following days, message board users remained extremely optimistic about the future of the company, however, the market sentiment started to shift. Volumes cooled down and the stock went through a couple of red sessions. With that in mind, the press release that came out about an hour before Wednesday’s opening bell was supposed to be something of a godsend for the shareholders.
MCIG announced that they have established a medical advisory board in preparation for the next line of exciting products. Dr. Khary Bryan was chosen to help the management team and, apparently, his expertise will be rewarded with an unknown number of MCIG shares. In order to avoid dilution, the company CEO, Paul Rosenberg, plans to cancel an equal amount of his own holdings which is very considerate of him.
The press release also mentions a few words about a new product which is currently under development and is codenamed “VITA”. The management team prefer to keep the details around it a secret at the moment, but they do say that they’re going to issue an update in the coming weeks.
Undoubtedly, some positive developments, but, surprisingly enough, the market’s reaction wasn’t immediate. Wednesday’s session ended with only 4.15% in gains and around $370 thousand in dollar volume.
Yesterday, however, traders descended on MCIG with full force. A lot of buying pressure propelled the ticker on a 23% run while the dollar volume reached a staggering $2 million. An eventful session, no doubt, but today’s trading is shaping up to be even more interesting.
Precisely forty-five minutes before the opening bell, MCIG came up with another announcement. Apparently, they have completed the acquisition of a company called Vapolution Inc. whose focus is on the traditional vaporizers market. The new subsidiary appears to have a product that has already been commercialized as well.
According to the press release, Vapolution have managed to rack up aggregate revenues of around $1.3 million between 2010 and 2013. The number is not that impressive, but having seen a few positive reviews of their product, we can see that there is some potential for growth.
The merger will be completed with the issuance of stock. 5 million MCIG shares will be transferred in two tranches and Mr. Rosenberg will once again help prevent dilution by sacrificing an equal amount of his own stake.
All in all, there’s no shortage of good news and, about half an hour after the opening bell, it’s clear that investors like what they hear. At the time of writing this article, MCIG is around 6% above its previous close and there’s still plenty of time to go up.
The company is moving along with its business plan nicely and, on the whole, it looks like one of the more sensible investment options on the OTC Markets. Even so, we mentioned in our previous articles that there are still a few unknowns that can only be cleared up by the future financial statements. That’s why, despite the copious amounts of optimism, you should be careful to conduct a proper evaluation of the risks before committing to an investment.
MCIG wasn’t the only marijuana stock to register a green session yesterday. Creative Edge Nutrition Inc (OTCMKTS:FITX), Medical Marijuana Inc (OTCMKTS:MJNA), Tranzbyte Corp (OTCMKTS:ERBB), and Cannabis Science Inc (OTCMKTS:CBIS) all logged some healthy gains and, with rumors about plans to adjust the banking restrictions for marijuana businesses, we might see an interesting end of the week as well.
