mCig, Inc. (OTCMKTS:MCIG) Surges On Final Spin-off Details
For 7 months now the company mCig, Inc. (OTCMKTS:MCIG) has been trying to spin-off its VitaCig division and it seems everything has finally been arranged. On November 6 it announced that the Securities and Exchange Commission had approved the registration statement of VitaCig, Inc. Yesterday right before the start of the session another press releases was published this time announcing that the spin-off and the dividend have received approval from FINRA with the record date for the dividend being November 28.
The news was enough to put investors into a state of buying frenzy and after drifting sideways for nearly two weeks the stock of the company shot up the chart. Over 4.1 million shares got traded throughout the session which is close to 4 times higher than the average volume of 1.08 million. But the sheer amount of traded shares becomes even more impressive if you compare it to the 300 thousand shares exchanged during Monday’s trading. The buying pressure pushed the ticker nearly 17% higher to $0.257 per share.
It seems that investors are excited but will the company manage to keep the momentum going? Since the start of October MCIG has been on a roller coaster ride registering a series of corrections after every jump upwards. We will see if the 1:1 dividend (for every share in MCIG investors will receive 1 VitaCig share) will prevent a similar pattern this time.
The company should file its next quarterly report by mid-December but until then we will have to rely on the report covering the period ending July 31. And it actually shows some rather solid financial results:
• $226 thousand cash
• $2.1 million total current assets
• $6943 total liabilities
• $195 thousand revenue
• $1 million net loss
It is indeed an extremely rare sight for a pennystock to have such a negligible amount of liabilities. On November 17 the company announced the third version of its vaporizer – the mCig 3.0. In addition a mCig 3.0 BO$S version created in conjunction with famous rapper Rick Ross is also expected to launch soon. The new products might be able to further boost the revenues generated by the company.
For now MCIG remains a volatile stock though and any trades should be attempted only after doing careful due diligence.
