mCig(R), Inc. and Omnicam Execute Landmark Distribution Agreement for VitaCig(R) Covering South Korea - Company Raises Full-Year Guidance
Read more: http://www.nasdaq.com/press-release/mcigr-inc...z3GmloNleF
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.
Read more: http://www.nasdaq.com/press-release/mcigr-inc...z3GmloNleF
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.
