At the start of 2014 the stock of mCig, Inc. (OTCBB:MCIG) was sitting at the quite respectable for any pennystock price of 10 cents per share but now, just two months later, they are trading for more than 4 times higher. Although such explosive runs are not uncommon in pennyland they are usually caused by a paid pump for the stock or by a relentless barrage of fluff PR articles released by the company itself. MCIG is different though.
The management team has done a lot in order to boost shareholders’ confidence in the stock and it has certainly not gone unnoticed. Yesterday MCIG
added another 13% to their value after closing at the highest point for the day of $0.427. Yesterday’s close also marked the new 52-week high for the company.
As we have already covered in our previous articles about them MCIG
have been quite active lately. They started to form a new Medical Advisory Board, completed the acquisition of Vapolution, Inc. and unveiled a new subsidiary – VitaCig, Inc. More importantly most of the deals happened without putting investors through any dilution of the common stock. In a rather rare decision the The CEO of the company has committed to cancel an amount equal to the issued shares out of his own.
The new subsidiary is going to develop a new type of e-cigarette that is supposed to be used as a medical deli very device. Due to MCIG
‘s focus on the cannabis market they decided to spin-off VitaCig and as a result are going to give their shareholders a dividend in the form of 1 share of VitaCIg for every share of MCIG
owned. For now the ex-dividend date has not been announced but VitaCig should become an independent company around April 15.
The next quarterly report is supposed to be filed within two weeks and it should show an improvement over the figures from the previous quarter. Back than the company had:
- $13 809 cash and total current assets
- $81 114 total liabilities
- $13 180 revenues
- $19 873 net loss
The company seems to be moving in the right direction and their involvement with the marijuana industry guarantees them quite a bit of exposure. At the same time the stock is heading for uncharted territories and investors might be tempted to start taking profits. That is why it is for the best to do your own due diligence before making any trades involving pennystocks.
Currently another e-cigarette pennystock – Vapor Corp, (OTCMKTS:VPCO
) is trying to uplist to the NASDAQ national exchange. In December they did a 1-for-5 reverse split which brought their share price to ranges above $8. In February they suffered a series of corrections but yesterday the ticker jumped back up by close to 10% and closed at $6.92.