Last week, one stock we looked at as a key breakout candidate was mCig Inc (OTCMKTS:MCIG). So far, that is looking quite prescient as shares of the stock are ripping higher, up another 20% in recent days on continued momentum.
Helping matters, the company just provided an update on its 40-acre industrial hemp project in New York. According to the release, “This spring, NYAcres propagated 80,000 industrial hemp seeds with FarmOn! Foundation in Copake NY projecting 55,000 pounds of processable flower for CBD extraction to sell as an ingredient for white label products demanding hemp oil and promoting its benefits. Since sprouting seeds NYAcres is currently planting 40 acres of industrial hemp outdoors in certified organic fields focused on two varieties of CBD concentrated organic seed strains: Cherry Wine, and Berry Blossom, which yield 12-15 percent CBD concentration. These feminized only seed strains are both 100% hemp and 100% organic and are registered with the Department of Agriculture.”
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.
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.
Find out when $MCIG reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
We’ve witnessed 43% tacked on to share pricing for the listing in the past month. What’s more, the company has benefitted from a jump in recent trading volume to the tune of just under 290% above the average volume levels in play in this stock over the longer term. The NYAcres deal is certainly not hurting matters.
CEO NYAcres, Tessa Edick “Industrial Hemp is a game changer for the farming industry with hemp retail sales in the US currently worth more than $688 million according to Forbes. Hemp-derived cannabidiol (CBD) is projected to be a billion-dollar market in just two years, according to a 2017 report by Brightfield Group. The data company estimated that hemp CBD sales hit $170 million in 2016 and a 55% compound annual growth rate over the next five years will cause the market to break the billion-dollar mark. And This super power plant can feed you, house you, clean you, protect you, clothe you, heal you and the soil and in New York State under the leadership of Governor Andrew Cuomo’s vision, also creates an economic development action plan with the Industrial Hemp Research Pilot Program. With an estimated $10 million annually from the 40-acre yield and a total of 212 total acres available, the NYAcres Project could potentially yield up to $50 million per year in high demand CBD retail products. This opportunity allows farmers access to a cash crop that earns exponentially beyond an apple or an ear of corn. Industrial Hemp will rebuild rural prosperity by bolstering the agricultural economy in America. We look forward to cultivating 40 acres with FarmOn! Foundation and seeing the Hemp Farming Act passed into law for the benefit of our agricultural community and beyond.”
Currently trading at a market capitalization of $117.7M, MCIG has a chunk ($680K) of cash on the books, which compares with about $487K in total current liabilities. One should also note that debt has been growing over recent quarters. MCIG is pulling in trailing 12-month revenues of $8.5M. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at -42.7%. We will update the story again soon as developments transpire. Sign-up for continuing coverage on shares of $MCIG stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $MCIG, either long or short, and we have not been compensated for this article.