Since 2013, the Company manufactures, markets, and distributes electronic cigarettes,
vaporizers, and accessories under the mCig brand name in the United States.
It offers electronic cigarettes and related products through its online store
mcig.org, as well as through the company’s wholesale, distributor, and
retail programs. In FY 2016 the Company expanded its products and services to
include construction management. The Company continues to look at strategic
acquisitions and product and service developments for future growth.
mCig Construction Division
We develop, design, engineer, and construct modular buildings with unique and
proprietary elements that assist cannabis growers in the market. Each modular
building is uniquely designed for each customer. The Company began construction
on its first contract in April 2016. We will continue to expand our offering
in the construction and modular facilities in multiple facets as the industry
continues to seek better and improved ways of production.
mCig Commercial Division
We manufacture, distribute, and retail the mCig – an affordable loose-leaf
eCig. Designed in the USA – the mCig provides a smoking experience by
heating plant material, waxes, and oils delivering, in the Company’s opinion,
a smoother inhalation experience. The Company also maintains an investment in
Vapolution, Inc. which manufactures and retails home-use vaporizers such as
the Vapolution 2.0. Through VitaCig, Inc., a Florida Company, a wholly owned
subsidiary, the Company is engaged in the manufacturing and retailing of a nicotine-free
eCig that delivers a water-vapor mixed with vitamins and natural flavors.
Scalable Solutions, LLC
The Company organized Scalable Solutions, LLC (“SS”) on March 7,
2016 under the laws of the state of Nevada. mCig has been issued 40 membership
units and Zoha Development, LLC (“ZOHA”) has been issued 20 units.
ZOHA has a ten year option to purchase 40 additional units which expires March
6, 2026.
mCig Internet Sales, Inc.
On June 1, 2016, subsequent to this reporting period, the Company incorporated
mCig Internet Sales, Inc., (“mCig Internet”) in order to consolidate
all online retail sales from various websites and to provide streamlining of
administrative and documentation services, consolidation of inventories, and
support economy of scale.
Vapolution, Inc.
On January 23, 2014, the Company signed a Stock Purchase Agreement with Vapolution,
Inc. which manufactures and retails home-use vaporizers. In accordance with
this agreement, mCig, Inc. acquired 100% of Vapolution, Inc. As part of this
transaction, mCig, Inc. issued 5,000,000 shares to shareholders of Vapolution,
Inc. The shareholders of Vapolution, Inc. retained the right to rescind the
transaction, which expired on January 23, 2015 but was extended to May 23, 2015
based on an Amended Stock Purchase Agreement executed on May 23, 2014. Subsequently,
on August 25, 2015, the final payment to the shareholders of Vapolution as extended
to September 30, 2015 and the right to rescind the transaction was extended
to June 30, 2017. On April 30, 2015 the Company impaired the $625,000 initial
investment into Vapolution, Inc., but maintains the $67,500 investment on its
balance sheet.
On January 23, 2014, Paul Rosenberg, CEO of mCig, Inc. cancelled an equal amount
(2,500,000 shares) of common shares owned by him resulting in a net non-dilutive
transaction to existing mCig, Inc. shareholders. The remaining 2,500,000 of
common shares owned by Paul Rosenberg were cancelled to offset the 2,500,000
new shares issued from the treasury to complete the purchase of Vapolution,
Inc.
Vapolution, Inc., is wholly owned by mCig, Inc., and is reported in the consolidated
financial statements as an investment of the Company. The financial statements
of Vapolution, Inc. are not consolidated with the consolidated financial performance
of mCig as expressed in this Form 10-K.
VitaCig, Inc.
On February 24, 2014, the Company entered into a Contribution Agreement with
VitaCig, Inc. In accordance with this agreement, VitaCig, Inc. accepted the
contribution by mCig, Inc. of specific assets consisting solely of pending trademarks
for the term “VitaCig” filed with the USPTO and $500 in cash as
contribution in exchange for 500,135,000 shares of common capital stock representing
100% of the shares outstanding of VitaCig, Inc. mCig now owns approximately
46% of VitaCig shares.
mCig specializes in products and services within the cannabis and eCig markets.
Since October 2013, mCig, Inc. has positioned itself as an industry leader and
technology company focused on two long-term secular trends:
(1) The decriminalization and legalization of marijuana for medicinal or recreational
purposes. Legalizing medicinal and recreational marijuana usage is steadily
on the rise not only domestically but also internationally. Marijuana has been
decriminalized in over twenty countries, in over five continents. Twenty-three
states and the District of Columbia currently have laws legalizing marijuana
in some form (See http://www.governing.com/gov-data/safety-justice/state-marijuana-laws-map-medical-recreational.html,
which website is not incorporated into this filing).
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