mCig Inc (OTCMKTS:MCIG) shares were up 6.48% to $0.191 and flat in after-hours trading. Share prices have been trading in a 52-week range of $0.03 to $0.22 so price is nearing the highs. The company has a market cap of $67.88 million at 340.61 million shares outstanding.
mCig Inc is a diversified company servicing the legal cannabis, hemp and CBD markets through its lifestyle brands. It has transitioned from a vaporizer manufacturer to industry large scale, full service cannabis cultivation construction company with its Scalable Solutions division operating in a Nevada market.
mCig Inc has two divisions: mCig construction division and mCig commercial division. The construction division constructs commercial buildings and modular buildings according to plans supplied by the customer, or act as a design/build firm taking the customer from concept to full turnkey occupancy, utilizing modular technology and structural insulated panels. The Company manufactures, distributes and retails the mCig, a loose-leaf electronic vaporizing cigarette called eCig. Its subsidiary, Vapolution, Inc, manufactures and retails home-use vaporizers, such as the Vapolution 2.0.
Last week, mCig Inc made a press release following a shareholder conference call on December 19. Management hinted that they had already passed last quarter’s earnings, with approximately 2-months still remaining. It also mentioned that each of its three business segments were expected to maintain an upward trend, with all the components being profitable and self-sustaining. Apart from that, cultivators in Nevada are also expected to continue to scale operations, adding to the strong profits from the constructing and consulting divisions of mCig Inc.
In particular, the press release noted that it is poised to deliver its “best quarter in history” so investors are scrambling to get a piece of the pie before the actual numbers confirm these projections. Management also mentioned that it has established a new wholly owned subsidiary, Grow Contractors Inc, to oversee construction segment with Rob Kressa. Kressa is a10-year cannabis industry veteran appointed as the CEO of Grow Contractors Inc.
The company is also in negotiations to acquire Medical Marijuana Establishment licenses in Nevada, has over $10 million in contract backlog, and continues to explore potential acquisitions in the cannabis space. Recall that this industry was projected to reach $20 billion in 2020 after the November 8 vote to legalize the use of medical or recreational marijuana in several US states.
A quick look at the daily chart reveals that mCig Inc shares already appear to have completed their post-election correction to the $0.10 area and is making its way towards the record highs at $0.22. A move past this level could open the door for further upside for the rest of the month, especially if the numbers do impress during the release of their quarterly earnings. Volume is significantly supported, reflecting strong and sustained investor interest that might still spike if the company forecasts even stronger figures down the line.
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