HENDERSON, NV–(Marketwired – Jul 31, 2017) – mCig, Inc. ( OTCQB : MCIG ), a diversified company servicing the legal cannabis and vape markets with innovative products, technologies, and services, is pleased to share news of the FDA’s latest decision to delay e-cig enforcement rules. After months of public pressure and outcry following the release and details of the new federal government e-cig deeming regulations released last year, the FDA has decided to delay regulatory enforcement of such regulations till 2022. According to FDA commissioner Scott Gottlieb, the reason the FDA has decided to delay new regulations is that it realizes vaping can be an effective tool in helping to wean smokers off conventional cigarettes, “which will eventually kill half of all long-term users,” said Gottlieb.
“mCig Inc. applauds this sensible and responsible decision by the FDA, as the scientific data continues to demonstrate that vaping is shown to be a less-harmful alternative to traditional, combustible cigarettes. mCig agrees with the American Vaping Association, that the near term e-cig enforcement would ban 99 percent of vaping products on the market and cause many to return to harmful and often fatal use of traditional cigarettes. As science and the will of the people confirm the wisdom of our business model concerning smoke alternative products and the vaping industry, I am confident the same will ring true with our core business model surrounding the cannabis and CBD industries. This means long term growth, viability, and value for our shareholders,” said Paul Rosenberg, CEO of mCig.
Following the details of the deeming regulations released last year, and the uncertainty it created for the U.S. market, mCig had shifted its business strategy and energy to international markets. This strategy proved widely effective with mCig now serving 4 continents and over 20 countries with its VitaCig brand, representing over $5M in projected revenue over the course of the next two years.
mCig also reclaimed non-performing international franchises to enhance shareholder value. As a result, the sole corporation now operates under the VitaCig name with full control and ownership of all its European distribution channels, previous branding for VitaStik, an EU Trademark (which includes all member states of the EU), 14 domain names (including vitastik.de, vitastikofficial.com), and all other European trade secrets of the Vitastik brand in all member states of the European Union; with additional trademark protection in Australia, Mexico, and Turkey.
Following Friday’s landmark decision by the FDA, mCig and its E-Cig Division will now refocus its efforts on the U.S., utilizing best practices which have driven international growth. As successful and popular as our original VitaCig vitamin and essential oil e-cig product line has become, the non-nicotine market only accounts for approximately 20% of the $4 billion dollar vape industry, while nicotine based vape products make up the other 80%. With Friday’s update from the FDA allowing us to market our nicotine products for an additional five years, mCig will once again expand its arsenal of vape and e-cig products by relaunching its widely popular VitaCig18 and VitaJuice nicotine product lines. This will allow us to tap into that larger piece of the vape/e-cig market, and scale our revenues greater than before. mCig will also re-engage several lucrative distribution deals and investment opportunities that were on hold while awaiting more feedback and clarity from the FDA.
As part of our aggressive national U.S. strategy, mCig Inc., along with Goodtrade Corp, will launch vitaciglatino.com, a Spanish only VitaCig online e-commerce website later this week. The Joint Venture initiative will focus on direct marketing, advertising, and investment geared toward the 55 million Spanish speaking Americans in the U.S., and the approximately 450 million native Spanish speakers around the world. mCig is confident this unique strategic initiative will generate significant additional revenue for the company, and will help to further expand brand awareness worldwide.
About MCIG Group ( OTCQB : MCIG )
Headquartered in Henderson, Nevada, with offices in Temecula, California, mCig, Inc. (OTCQB : MCIG ) is a diversified company servicing the legal Cannabis, Hemp, and CBD markets. mCig, Inc. is committed to being the leading distributor of technology, products, and services to fit the needs of a rapidly expanding industry. mCig, Inc. has transitioned from a vaporizer manufacturer to industry leading large scale, full service cannabis cultivation construction company with its Grow Contractors division currently operating in the rapidly expanding the Nevada market.
mCig, Inc. also employs a world renowned tech team and has recently entered the techspace to satisfy its evolving role in technology and increased growth in its following over the past few months.
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. With over seventy five years of experience combined between the key players that make up the Cannabis Grow Contractors Division, mCig, Inc. is proud to work with Cannabis Industry leaders and provide broad and rounded solutions for legal growers nationwide.
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Safe Harbor: Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to, risks and uncertainties relating to the Company’s ability to develop, market and sell products based on its technology; the expected benefits and efficacy of the Company’s products and technology; the availability of substantial additional funding for the Company to continue its operations and to conduct research and development, and future product commercialization; and the Company’s business, research, product development, regulatory approval, marketing and distribution plans and strategies.
This release contains a non-GAAP disclosure, EBIDTA, which consists of net income plus interest expense, net, provision for income taxes and depreciation and amortization. This term, as the Company defines it, may not be comparable to a similarly titled measure used by other companies and is not a measure of performance presented in accordance with GAAP. The Company uses EBIDTA as a measure of operating performance. EBIDTA should not be considered as a substitute for net income.