mCig Inc (OTCMKTS:MCIG) is at a crossroads, or maybe just on the other side of one. This was truly one of the most dramatic winners during 2016’s huge Green Rush 2.0 run higher for stocks in the cannabis patch. But 2017 has been a very different story, with shares drifting and grinding lower, falling as much as 75% into its October lows around $0.12/share, However, things have begun to really turn around, with shares up nearly 100% over the past 6 weeks. To further that trend, the company just announced that the company’s CEO has agreed to invest more than $500,000 into OBITX, Inc., formerly known as GigeTech, Inc., a majority-owned subsidiary of MCIG.
According to the release, the funds will be used by the company to purchase the first of its kind, state of the art cryptocurrency ATMs. OBITX will utilize the machines to service cannabis companies by helping to build a bridge between the “cash” business of cannabis and mainstream finance through cryptocurrency. This is hardly the first mover in this crossover theme pairing up cannabis and cryptocurrency concepts. But it certainly bears tracking.
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 FinanceRegistrar.com Right Now by entering your Email in the box below.
As noted above, the company just announced that it has successfully moved into a true California footprint. As a major player in the cannabis patch, it’s naturally critical for the company to establish operations and impact in what is sure to become the largest market in the space for the US.
As noted above, MCIG shares have been taking a very bullish turn over the past 6 weeks. The company recently announced that its CEO has infused serious capital into a subsidiary to finance activities positioning the subsidiary in the cryptocurrency space.
As we know, nothing on planet earth has been as hot as the cryptos. This announcement and move is a strategy designed to align the company with that hot trend, and it may be working. It’s not at all an uncommon strategy, and we would be a bit cautious about chasing momentum founded on such means. But it’s certainly worth watching this strategy develop.
We’ve witnessed 43% tacked on to share pricing for the stock in the past month, a bounce that has taken root amid largely bearish action over the larger time frame. Market participants may want to pay attention to this stock. MCIG is a stock who’s past is littered with sudden rips. In addition, the listing has seen interest climb, with an increase in recent trading volume of 86% over what the stock has registered over the longer term.
Earning a current market cap value of $97.8M, MCIG has a stash ($1.7M) of cash on the books, which is balanced by virtually no total current liabilities. MCIG is pulling in trailing 12-month revenues of $7.7M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 963.7%. 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.