BELLEVUE, Wash., Oct. 21, 2014 (GLOBE NEWSWIRE) -- mCig®, Inc. (OTCQB:MCIG) ("mCig"), a technology company that owns, manufactures, and distributes the mCig®, VitaCig®, and Vapolution products, is pleased to announce that the company's wholly owned subsidiary: VitaCig, Inc. has executed a historic distribution agreement awarding San Francisco based Omnicam and its Korean partner Kooleever Inc. with exclusive rights to distribute VitaCig® products in the Republic of Korea in territories covering a population of 50 million people. Koolever has already contracted with over 160 stores that will begin retailing the VitaCig® units over the next few weeks. Additional stores are expected to come on-line in December 2014.
The agreement with Omnicam has been under negotiation for nearly three months. An initial agreement was signed by both parties on September 18, 2014. The company waited for confirmation of the first purchase order totaling $350,000, before making a public announcement.
International Distribution Strategy
The Omnicam agreement is part of a comprehensive effort by the company to lock-in international distribution agreements. This effort was initiated following the USPTO approval of VitaCig® and mCig® trademarks paving the way for global royalty agreements. The effort has been spear-headed by Paul Rosenberg, Jordan Young, and several outside consultants who have been retained on a performance basis. Over the past six weeks, mCig and VitaCig management have been on the road in Italy, Spain, Mexico, Asia, and Europe meeting with several potential partners. Management believes the Omnicam agreement is likely the first of many country-wide deals to be announced over the next few months.
mCig, Inc. Raises Full-Year Guidance on Omnicam Agreement – Historic Cash Levels
Due in part to the transaction with Omnicam, mCig, Inc. is raising full-year guidance for 2014. Management anticipates record revenues and record adjusted profit for full-year 2014. As of October 20, 2014, mCig, Inc. consolidated cash and capital are both at historic levels, there has been no change in debts or payables (virtually zero), and the total share count remains the same as at quarter end.
VitaCig, Inc. S-1 Update
The company would like to update its shareholders on the VitaCig® Inc. dividend, spinoff, and IPO. The amended S-1 filed on September 29, 2014 received two comments from the Securities and Exchange Commission. Both comments were addressed in the amended S-1 filed on October 16, 2014. As per the original guidelines of the spinoff, the ex-date for the dividend will be the date the effective notice is declared by the Securities and Exchange Commission.
"Our agreement with Omnicam, Koolever, David Choi, and Tom Choi is the most important event in the history of the company and we are honored to have earned their trust. We worked very hard to close this transaction and believe it sets the stage for stable recurring revenues at VitaCig®. More importantly, this agreement guarantees the distribution of our products in Korea a country with abnormally high rates of smoking. Government data shows that just under half of all adult males smoke compared to an average of 26% in the 34 countries that make up the OECD. We look forward to assisting in harm-reduction while growing our brand value. I would like to thank Jordan Young for hitting the ball out of the park with this agreement. We are all fortunate to have such a gifted person on our team," said Paul Rosenberg, CEO of mCig, Inc.
"Solidifying these distribution rights with Omnicam is a great move towards expanding our brand internationally. Our research has shown a significant demand for nicotine-free e-cigs, both here in the US as well as abroad. Korea, which has a high percentage of smokers, is a perfect territory to test the waters and push our message of offering a healthy alternative to traditional cigarettes and nicotine based e-cigs. Partnering with Omnicam is a first step in establishing the VitaCig brand in Southeast Asia, with other territories sure to follow. I look forward to working closely with David and Tom on this venture," said Jordan Young, VP of Sales & Marketing for VitaCig, Inc.
"Timing is everything. There is an incredible opportunity to provide a nicotine and tobacco free alternative with the VitaCig product. With our main distributor in South Korea, Tom Choi CEO of Koolever Inc. we will be able to expeditiously distribute the VitaCig product. We have already contracted with a chain of retail stores with over 160 locations. With the introduction of this new product, we will be the first to provide a safe, harmless, cost effective alternative in South Korea. The interest from our distribution channels has been tremendous!" said David Choi, CEO of OmniCam.
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 3.0. Through its wholly owned subsidiary, VitaCig, Inc. the company manufactures and retails the VitaCig®, a $5 nicotine-free eCig that delivers a water-vapor mixed with vitamins and natural 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.