MCIG Stock volume explodes after announcement of VitaCig, Inc. February 08 2014
Feb 07, 2014 (ACCESSWIRE via COMTEX) -- The prospect of the legalization of marijuana coupled with the excitement surrounding e-cigarettes is spurring innovation and new product development daily.
Unveils VitaCig, Inc. - 100% Owned Subsidiary
Australian vaporizer and e-cigarette maker mCig Inc.'s (otcqb:MCIG) stock volume soared Feb 6, 2014 with 6,586,756 shares changing hands, more than double its three-month average of 3,067,575 shares. The uptick in activity appeared to be triggered by the Feb. 3 unveiling of VitaCig, Inc., mCig's new product made by its wholly-owned subsidiary.
Taking the same approach applied to the marijuana industry, mCig said it decided to avoid direct competition with the ultra-competitive and highly fragmented nicotine-based eCig industry. Instead, mCig decided to develop a niche product by embracing the potential of eCig technology (the ability to easily vaporize pre-packaged liquids from a pocket-sized device) as a medical delivery device.
In the fall of 2013 the company began quietly working on the new product codenamed: "Vita".
"We incorporated a new subsidiary: VitaCig, Inc. trademarked the name "VitaCig", and developed the "VitaCig" - a nicotine-free eCig that delivers a water-vapor comprised of vitamins, nutrients, and natural flavors," mCig's CEO Paul Rosenberg said, in a written statement.
As far as mCig is aware, a product comparable to VitaCig does not exist on the market. The company believes that VitaCig could cannibalize both the existing eCig market as well as the e-Hookah markets by providing a superior, enjoyable experience without the nicotine or overly sweet flavors. It believes the product will appeal to a wide market including: Smokers looking to quit, Smokers looking to reduce nicotine consumption, non-smokers, and rehabilitation patients suffering from illnesses.
"With the mCig we developed a brand that immediately disrupted the vaporizer market. With VitaCig we are hoping to disrupt the eCig market," Rosenberg said. "At this stage, it would be foolish to compete head on with the major tobacco companies who are embracing electronic cigarette technology and rolling out nicotine based products," he added.
Becoming Strong Vaporizer Player
mCig is also making an aggressive foray into the legal marijuana market by recently introducing an herb vaporizer that only retails for $10. On Jan. 10, the company announced that it expected to fulfill all incoming orders within 5-t-10 business days with order lead time declining to 3-to-5 business days by January 21, 2014.
"Today marks an important milestone for our company. In less than six months we have transitioned from a development stage company to launching two iterations of a device that is quickly cementing itself as the most efficient and affordable way to vaporize plant material," stated mCig, Inc. CEO Paul Rosenberg said, in a written statement.
On Jan. 24, mCig announced that it acquired Vapolution, Inc., an herbal vaporizer company based in Northern California in a non-dilutive transaction that consolidates an industry leader with over $1.3 million (unaudited aggregate revenue since 2010) in sales. The company contends that the acquisition transforms mCig, Inc. into a formidable competitor in two high growth categories: Personal Vaporizers (mCig 2.0, Vapolution PocketVape) and traditional home-use Vaporizers (Vapolution 2.0).
On Feb. 6, MCIG's share price closed at 40 cents, up 5 cents from its close of 35 cents the previous day.
Supplies Equipment for Marijuana Growers
Another marijuana penny stock that's stock volume skyrocketed Feb 6 was Growlife Inc.PHOT +0.44% , a Woodland Hills, Calif. holding company. It traded 53,164,244 shares, substantially higher than its three-month average volume of 35,896,118.
On Feb. 6 PHOT shares closed at 34 cents down 5 cents from its closing price of 39 cents the previous day.
Growlife is strongly positioning itself by developing various markets and deploying new products and services for the legal cannabis industry. For example, one of its recently acquired companies makes hydroponic grow containers, which are designed to grow vegetables, herbs, flowers and fruits in any environment. The company appears to be vigorously considering every possible angle and service to capture its piece of the legal cannabis pie.
On Jan. 31, Growlife announced that it had entered into a strategic partnership with RXNB Inc. Growlife entered into an agreement to purchase a 40% equity stake in RXNB Inc. To sell and distribute RXNB proprietary technologies globally and share profits related to technology licensing, subject to the approval of the GrowLife board. GrowLife currently has a 45% ownership interest in OGI, with conditions under which it can gain majority interest.
RXNB is an investment company with holdings in drug formulation, manufacturing, and distribution. The company represents a recent roll-up of several independent companies in the pharmaceutical and nutraceutical market. RXNB has numerous pending patents in the field of THC research and development. RXNB has a portfolio valuation of $110 million dollars and approximately $27.5 million dollars in annual revenue.