-Initial Inventory of mCigs Sold Out in 10 Days
-Management Team in China Securing New Inventory and QA/QC
-mCig 1.0 Issues addressed and Fixed in next batch of mCigs
-Company to begin accepting preorders for mCigs shortly
BELLEVUE, Wash., Nov. 12, 2013 (GLOBE NEWSWIRE) -- mCig, Inc. (OTCQB:MCIG) is pleased to announce that in less than 10 days the company's initial inventory of mCigs has been sold out. The company had initially projected modest sales within the first month and also wanted to ensure the initial round of mCigs would be well received by the target demographic. The results confirm that a vibrant market exists for these devices and mCig, Inc.
"We launched on October 31, at precisely 12:00 AM EST. Our initial batch of inventory was projected to last for one month based on our internal estimates of what the conversion rates would be from our marketing campaigns. On the third day we noticed a sharp increase in traffic from roughly 10,000 hits per day to between 50,000-90,000 hits per day as the mCig began to experience a viral effect. Subsequently our daily sales numbers rose to an annual pace of roughly $500,000 and our inventory was very quickly depleted. The experience was exhilarating as we sold to customers from New York to New Zealand and were averaging about $20 USD per checkout, per customer inclusive of shipping and handling. On Sunday November 10, we shut down the store as we ran out of mCigs to sell. While it is unfortunate that we had to stop selling mCigs and temporarily halt our momentum, we believe that we are now better positioned for growth as we have received crucial feedback about the mCig and have a more comprehensive understanding of the market opportunity. We thank all our customers and shareholders for making this launch a true success and we look forward to the next few months as we resume selling the mCig!" said Paul Rosenberg, CEO of mCig, Inc.
mCig 1.0 Issues Addressed and Fixed
The company has been made aware of issues that arise when cleaning the mCig. While these issues do not affect all users, about 10% of users report their mCig heating element either broke off or stopped heating after cleaning the device following a successful initial use. The company and its engineers have addressed this issue by redesigning the mCig heating chamber. The mCig now has a removable heating element that will be unscrewed from the heating chamber when cleaning allowing for simple cleaning without coming into contact with the heating element. Other improvements have been made to the heating element that will result in more durability when used with dry leaves or herbs. None of these improvements will result in a higher selling price for the mCig. The company has also sent a representative of management to China to personally inspect the quality of the next batch of mCigs. Finally, the company is extending an offer to any customers that have been impacted by these issues for a free mCig from the new batch of inventory.
mCig 2.0 Pre-Orders
The company has decided to reopen its stores for fully-refundable pre-orders of the mCig 2.0. We expect to be restocked by the end of this month but caution potential customers that any additional improvements to the mCig will be met with additional delays numbering in the days, not weeks.
About mCig, Inc.
mCig, Inc. (OTCBB: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 is preparing to launch the mCig – a purpose built loose leaf eCig retailing 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. See more at: http://www.mcig.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. 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. (OTCBB: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.