mCig, Inc. Provides Update on VitaCig Spin-Off and Pro-Rata Dividend to Shareholders
26 February 2014 - 2:19AM
mCig, Inc. (OTCQB:MCIG) would like to update its shareholders on
the status of the VitaCig, Inc. Spin-Off and Pro-Rata Dividend.
VitaCig, Inc. Capital Structure
VitaCig, Inc. was incorporated in the State of Nevada with a
simple capital structure consisting of 500,135,000 common shares
issued and outstanding.
Board Approval for Dividend and Spin-Off
On February 24, 2014, mCig, Inc. Board of Directors approved a
stock dividend that would result in the spin-off of VitaCig, Inc.
to mCig, Inc. shareholders. The spin-off will be effectuated on a
1:1 basis resulting in 1 share of VitaCig, Inc. paid as a dividend
to every owner of 1 share of mCig, Inc. (OTCQB:MCIG).
As part of the Spin-Off, Paul Rosenberg, Chairman and CEO of
mCig, Inc. agreed to contribute his pro-rata rights to the VitaCig,
Inc. dividend (representing 244,931,627 shares) to mCig, Inc. This
will result in mCig, Inc. owning 49% of VitaCig, Inc. shares and
the inclusion of these shares on the company's balance sheet in
future quarters.
Update on S-1 Filing, Public Listing, and Ex-Dividend
Date
The VitaCig, Inc. Audit is close to completion. A preliminary S1
filing has been prepared with a targeted filing date of April 5th,
2014. It is estimated that public listing should be achieved within
6-12 weeks of the S1 filing date. The company will decide on an
Ex-Dividend date (the date which marks the cut-off for receipt of
the VitaCig dividend) over the next several weeks.
VitaCig Launch Date – April 15th, 2014
VitaCig will launch as an independent company on April 15th,
2014 retailing three great combinations: Relax, Refresh, and
Energize sold in $6 packs of 3 VitaCigs. Investors and customers
are encouraged to visit the VitaCig website and place pre-orders
towards the end of March.
"Today marks an important day for mCig, Inc. as my decision to
contribute dividend-rights to 244,931,627 shares of VitaCig will
result in a significant increase in assets. Following the listing
of VitaCig, we will be in a unique financial position amongst our
peers with zero debt and potentially millions if not tens of
millions of dollars in shareholders' equity. These shares will also
provide mCig, Inc. with the ability to raise capital while
incurring no dilution by liquidating shares of VitaCig if we so
desire. While we must wait until VitaCig, Inc. becomes a public
company before assessing the ultimate benefit to us, I am confident
that this move will result in mCig, Inc. being the first company in
the "Marijuana Index" to qualify for an uplisting to NASDAQ Capital
Market or NYSE Euronext MKT, LLC exchanges. We have always stated
that this was one of our objectives and we will strive to achieve
this goal over the course of 2014 or 2015," said Paul Rosenberg,
Chairman & CEO of mCig, Inc.
About mCig, Inc. mCig, Inc. (OTCQB:MCIG) is a technology company
focused on two long-term secular trends sweeping the globe: (1) The
decriminalization and legalization of marijuana for medicinal or
recreational purposes (2) The adoption of electronic vaporizing
cigarettes (commonly known as "eCigs") by the world's 1.2 Billion
smokers. The company manufactures and retails the mCig – the
world's most affordable vaporizer priced at only $10. Designed in
the USA – the mCig provides a superior smoking experience by
heating plant material, waxes, and oils delivering a smoother
inhalation experience. The company also owns Vapolution, Inc. which
manufactures and retails home-use vaporizers such as the Vapolution
2.0. Through its wholly owned subsidiary, VitaCig, Inc. the company
is preparing to launch the VitaCig, a $2 nicotine-free eCig that
delivers a water-vapor mixed with vitamins and organic flavors. See
more at: http://www.mCig.org/, www.Vapolution.com, and
www.VitaCig.org The Company believes that a well regulated
marijuana industry is emerging as more states follow the lead of
Washington and Colorado in legalizing marijuana. A similar trend is
developing within the eCig industry following the first acquisition
of an electronic cigarette brand (Blucigs) by a traditional tobacco
company Lorillard Inc. for $135 million followed by another
acquisition in February 2014 by Altria Group Inc. of Green Smoke
for $150 million. Wells Fargo analyst Bonnie Herzog estimates that
eCig sales may rise from $1 Billion in 2013 to $10 billion over the
next three years. mCig, Inc. (OTCQB:MCIG) has positioned itself as
a first mover at the intersection of these two trends and hopes to
create shareholder value by making the mCig one of the leading
choices for electronic consumption of plant material. - See more
at: http://www.mcig.org/investors/investor-opportunity-subpage/
Safe Harbor Statement 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.
CONTACT: Paul Rosenberg
CEO
(425)462-4219