mCig Inc (OTCMKTS:MCIG) is a micro-cap name that has started to garner increasing attention as the stock gets back into bounce mode after a long and grueling corrective wave. MCIG’s most recent catalyst was its announcement early this week that the company is in a process of implementing a strategic plan that will help it to accelerate its growth by expanding its reach in the cannabis market.
According to the release, MCIG looks to make an acquisition of existing cultivation, production and distribution licenses in California, Nevada, and other recreational states. In addition, the company has interest in acquiring proprietary cannabis oil extraction technologies and established leading brands that can help accelerate growth and expand the company’s reach. The acquisition strategy is intended to strengthen the company’s intellectual property and national presence, while further building the mCig portfolio and driving financial and shareholder value.”
mCig Inc (OTCMKTS:MCIG) offers electronic cigarettes and related products through its online store mcig.org, as well as through the company’s wholesale, distributor, and retail programs. It also constructs commercial and modular buildings which are aimed at the cannabis cultivation market.
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According to company materials, “Headquartered in Henderson, Nevada, mCig Inc. A diversified company servicing the legal cannabis, hemp and CBD markets via its lifestyle brands. MCIG has transitioned from a vaporizer manufacturer to industry leading large-scale, full-service cannabis cultivation construction company with its Scalable Solutions division currently operating in the rapidly expanding Nevada market. The company looks forward to growing its core competencies to service the Ancillary legal Cannabis, Hemp and CBD markets, with broader expansion to take place once federal laws change.”
The company’s subsidiary, Grow Contractors, touts itself through the following messaging: “Using modular system technology, we create a variety of environmental enclosures ranging from basic temperature and humidity control to medical grade cleanroom environments designed to produce consistent results during any stage of cannabis cultivation. Our mission is to help our clients safeguard investments and find long-term success. This is why we take pride in our ISO compliant, state of the art building components to be the base of your business.”
As noted above, MCIG shares have started to show some upward momentum again after a long and slow corrective period that corresponds with similar action in many stocks largely exposed to the cannabis market space. Ultimately, support in the $0.15-0.20 area has held so far. At this point, the stock is now testing the 200-day simple moving average as a rising supportive technical barrier.
And the latest news that the company is pursuing an acquisition of existing cultivation, production and distribution licenses in California, Nevada, and other recreational states should only add to the potential for a return of speculative fervor where trading of MCIG shares are concerned.
“We have access to the funds necessary to achieving our goals, and combined with a strong management team and accomplished partners, we are poised to successfully execute the company’s vision,” says Paul Rosenberg, CEO of mCig, Inc.
In all, traders will note 37% added to share values of the listing over the past month of action. This is emblematic of the stock. MCIG has a history of dramatic rallies. Moreover, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed 34% beyond its prior sustained average level.
Now commanding a market cap of $89.10M, MCIG has a stash ($420K) of cash on the books, which compares with virtually no total current liabilities. MCIG is pulling in trailing 12-month revenues of $2.5M. In addition, the company is seeing major top line growth, with y/y quarterly revenues growing at 445.9%. We will update the story again soon as developments transpire. For continuing coverage on shares of $MCIG stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!
Disclosure: we hold no position in $MCIG, either long or short, and we have not been compensated for this article.