mCig Inc. (OTCMKTS:MCIG)
Shares of mCig Inc. (OTCMKTS:MCIG) gained 15.1% after the diversified company announced its Grow Contractors have entered into an exclusive agreement for the construction of a 31,000 square foot facility. Located in a prime area of the San Gabriel Valley, California, the facility is to be used for the legal cultivation, extraction, and distribution of cannabis.
mCig $5 Million Production Facility
mCig Inc. (OTCMKTS:MCIG) extraction lab is to be equipped for the production of distillate and for the filling of vape pen cartridges. The facility should be able to produce over 100 separate SKU’s. The facility will also act as a distribution center supported by a fleet of vehicles and drivers for distribution to retailers.
The cultivation area will be 22,000 sq ft – able to carry over 500 flowering lights. The $5 million production facility seeks to take advantage of the growing demand for cannabis products and. According to Grow Contractors CEO, Robert Kressa, the state’s cannabis market presents unique opportunities that the company plans to take advantage of.
“We look forward to our expanded presence in California and more to come. Expect many more construction, management, and exclusivity announcements from Grow Contractors,” stated Paul Rosenberg, CEO of mCig Inc. (OTCMKTS:MCIG).
mCig Inc. (OTCMKTS:MCIG) is still trading in a downtrend despite embarking on an aggressive expansion plan. The stock has shed more than 60% in the market since February. It now awaits to be seen if it will erase the losses given the wave of positive news that has seen it bounce from this year’s lows.
Technology Unit Spin-Off
Separately, the diversified legal cannabis company has announced plans to spin-off its technology division as a standalone company. Existing mCig Inc. (OTCMKTS:MCIG) shareholders are be awarded shares in the proposed public entity based on their holdings. The company plans to file the appropriate documents with the SEC over the next 45 days.
The technology division provides a wide range of services including software solutions, advertising, e-commerce, and blockchain integrated technologies. The spinoff will allow the unit to expand its operations into other markets and industries while continuing to pursue opportunities in the cannabis space.
“These divestitures have and continue to create cash flow, allowing us to maintain our ‘ZERO TOXIC DEBT’ mantra. This solidifies our continued growth and will allow us to achieve a higher profit margin, thus increasing shareholder wealth,” said Paul Rosenberg, MCIG’s Chief Executive Office.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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