mCig Inc. (OTCBB:MCIG) Slumps Again
mCig Inc. (OTCBB:MCIG) dropped 7% yesterday, for the second time in a row, as the hype of its newest press release dissipated.
On April 1, MCIG announced that it is planning to bring a revolutionary new product on the market. Through its newest wholly owned subsidiary, named LiqCig Inc., mCig Inc. plans to start the manufacturing of mobile vaporization devices for recreational alcoholic consumption. In other words, MCIG announced that it is currently developing the world’s first pre-packaged alcoholic electronic cigarette.
Although the market’s immediate reaction to the positive media exposure might have been to push MCIG up the charts, the ticker’s ascent was as unimpressive as it was short-lived. After all, hopeful press releases are all well and good, but in light of the company’s latest financial report, for the period ended Jan 31, 2014, boastful optimism sounds a bit hollow:
- cash – $37 thousand
- current assets – $91 thosaund
- total current liabilities – $22 thousand
- revenues – $85 thousand
- net income – $10 thousand
In order to really deliver a “revolutionary” product that will “significantly disrupt the existing Alcoholic Beverage Market by providing a superior method for the consumption of alcohol”, the company may need substantially more than $37 thousand. Which it currently does not have.
Unlike many other marijuana companies, like Tranzbyte Corp. (OTCMKTS:ERBB) and Growlife Inc. (OTCBB:PHOT), MCIG actually managed to make a profit during its last quarter and is not struggling with crushing debt. However, as experience with the marijuana stock market teaches, such meager figures alone probably won’t be enough to keep the company afloat.
MCIG‘s other goal, to improve the delivery times of its products, seems more believable, but although it may affect the company’s commercial reputation, and therefore revenues, its achievement will probably not have that much impact on the company’s market value.
