Actually, MCIG only has authority to pick the reco

Actually, MCIG only has authority to pick the record date; the exchange rules, SEC rules, and other statutes and rules govern the rest. Here is the research and analysis I did this morning or last night or what night is it...this is copied and pasted from my post elsewhere:

From the SEC Website, the rule for cash dividends is as follows:

"Once the company sets the record date, the ex-dividend date is set based on stock exchange rules. The ex-dividend date is usually set for stocks two business days before the record date. If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you get the dividend."

However, the rule that applies to VITACIG, since it is not a cash dividend but a dividend consisting of shares of a spin-off company, would be as follows (again taken directly from SEC website):

"Sometimes a company pays a dividend in the form of stock rather than cash. The stock dividend may be additional shares in the company or in a subsidiary being spun off. The procedures for stock dividends may be different from cash dividends. The ex-dividend date is set the first business day after the stock dividend is paid (and is also after the record date).

If you sell your stock before the ex-dividend date, you also are selling away your right to the stock dividend. Your sale includes an obligation to deliver any shares acquired as a result of the dividend to the buyer of your shares, since the seller will receive an I.O.U. or "due bill" from his or her broker for the additional shares. Thus, it is important to remember that the day you can sell your shares without being obligated to deliver the additional shares is not the first business day after the record date, but usually is the first business day after the stock dividend is paid."

But the SEC's disclosure at the bottom of the page states that the above "is neither a legal interpretation or a statement of SEC Policy." Well, I don't know about you, but that's actually precisely what it appears to be. The SEC must have terrible lawyers to have drafted up that disclosure for You can call a donkey a pig all you want, but it's still a donkey, notwithstanding there being a sign in front of it saying it's a pig)

Based on the above information, which seems to contradict some other rules and statutes I've been researching simultaneously, all of which is giving me the biggest headache (never become a lawyer,btw, it's not worth it, ever) this statement printed on the SEC website clearly interpreting legal statute would suggest that (a) The company gets to choose the "Record Date" and based on the PR you quoted, they have chosen the record date to be the day following the date on which the effective notice is filed by the SEC.

In their "Statement" however, once a company sets a record date, the ex-dividend date is said to be "set pursuant to stock exchange rules." This thus suggests we need to look to the rules governing the exchange in which MCIG trades, which is ultimately governed by FINRA, specifically section 11140(b) which reads in relevant part (i think):

(a) Designation of Ex-Date
All transactions in securities, except "cash" transactions, shall be "ex-dividend," "ex-rights" or "ex-warrants": (1) on the day specifically designated by the Committee after definitive information concerning the declaration and payment of a dividend or the issuance of rights or warrants has been received at the office of the Committee; or (2) on the day specified as such by the appropriate national securities exchange which has received definitive information in accordance with the provisions of SEA Rule 10b-17 concerning the declaration and payment of a dividend or the issuance of rights or warrants.

"b) Normal Ex-Dividend, Ex-Warrants Dates

(1) In respect to cash dividends or distributions, or stock dividends, and the issuance or distribution of warrants, which are less than 25% of the value of the subject security, if the definitive information is received sufficiently in advance of the record date, the date designated as the "ex-dividend date" shall be the second business day preceding the record date if the record date falls on a business day, or the third business day preceding the record date if the record date falls on a day designated by the Committee as a non-delivery date.
(2) In respect to cash dividends or distributions, stock dividends and/or splits, and the distribution of warrants, which are 25% or greater of the value of the subject security, the ex-dividend date shall be the first business day following the payable date.
(3) In respect to stock dividends and/or splits relating to American Depository Receipts (ADRs) and foreign"


Sigh.

Ok, so the company apparently gets to choose the record date, that has stayed consistent throughout what I've read and MCIG has chosen the Record Date to be The first business calendar day following an effective statement from the SEC.

So from there, we look further to 11140(b) which may or may not contradict what MCIG claims the ex-date will be (the important part here is that MCIG doesn't have authority to choose the ex-date, so they're simply giving guidance in their P.R.'s , but that guidance could turn out to be bad guidance, who knows, I think I was supposed to do work work tonight)

(b) says that if the stock dividends (which i will assume for now covers dividends consisting of stocks of spin-off companies in addition to dividends consisting of the stock of the company giving the dividend to begin with, are valued lower than 25% of the value of MCIG, the Ex-Date shall be the 2nd business day preceding the record date if the record date falls on a business day, which it will because I do not believe the SEC files any effective statements on any other days but business days

SO, the only way that MCIG's statements from the P.R.'s would not contradict this rule is if the dividend falls under 11140(b)(2) rather than (b)(1), so looking at (b)(2), it states that if the stock dividend is greater than 25% of the value of the subject security, the ex-dividend date shall be the first business day following the payable date.

NOW; reading that just blew my mind because now it seems that the stock price must have been manipulated such that the value of the dividend, whatever Vitacig shares are valued at, which I haven't gotten to yet in my research and likely wont tonight because im about to pass out, must be worth over 25% of the share price of MCIG; so I'm not sure, yet, how they value new spin-off shares under this rule or whether spin-off shares even fall under this rule, but say they plan to price their vitacig IPO at .05; MCIG's share price would have to be around .21 or less...which is pretty much where it looks like it may be heading temporarily (coincidence)? It's late I am delirious so if none of this makes sense to anyone, welcome to the club, there are many of you out there. But for me, that all just made everything make sense, not necessarily in a good or bad way, just made the puzzle of MCIG share price fit within logic.


the rest of Rule 11140 seems to be in line with everything or not relevant and/or already complied with.,

Holy hell is this type of law a headache, yet I enjoy it much more than bankruptcy. However, I think I'm going to call it a night and try to finish the mystery tomorrow, if there is a mystery. Actually, let me hit that one other point that was made and that was the last quote you had: "Distribution Date

"The Distribution Date shall be defined as the first business calendar day following an effective statement from the SEC. This shall be deemed the record date and only shareholders beneficially holding shares of mCig, Inc. on the record date shall receive shares of VitaCig, Inc. per this distribution. Following the spin-off, these shares are held by a total of 68 shareholders of record."

Now, remembering what I covered above; the company chooses the record date, the rules govern the rest. So, the record date is going to be the day after the effective statement is filed. The ex-date doesn't necessary have to be when MCIG said it was going to be, unless they have loose control on determining the value of a vitacig share is and can manipulate whether that's under or over 25% of the value of MCIG; but considering they say what the ex-date will be with stern confidence, it sounds like they have or think they have that ability.

Now, what I don't quite understand from that quote from the s-1A is the part about both "only shareholders beneficially holding shares of mCig on the record date shall recive shares of vitacig per this distribution. Following the spin-off, these share are held by a total of 68 shareholders of record. There are obviously more than 68 shareholders of record, so maybe someone else can explain that part?


Ok, sorry for that analysis; the rules are not organized very well in my opinion, they don't read well either, and though most legal statutes and rules read strangely to people; these are some of the worst i've seen, but I have no experience in this area of law. so, I must make the following disclaimer:


Disclaimer: NOTHING IN THIS POST SHALL BE CONSIDERED LEGAL ADVICE AND THERE SHALL NOT EXIST ANY ATTORNEY OR CLIENT RELATIONSHIP BETWEEN THE AUTHOR OF THIS POST AND ANYONE PERSON(S), WHETHER LIVING OR DEAD, LONG OR SHORT ON MCIG, OR JUST A PAID BASHER. NOTWITHSTANDING THE FACT THAT I MAY BE A LICENSED ATTORNEY IN CA; I AM IN NO WAY WHATSOEVER ACTING IN AN ATTORNEY CAPACITY HEREIN, AND NOTHING I SAY HEREIN IS SAID IN SUCH A CAPACITY. IN FACT, SHOULD ANY CLAIM BE MADE THAT I AM EITHER PROVIDING LEGAL ADVICE OR ACTING IN THE CAPACITY OF AN ATTORNEY PRACTICING LAW, I WILL COUNTERSUE YOU AND THE LIKELYHOOD I WILL WIN IS MUCH HIGHER THAN YOUR IQ, WHICH MAY MEAN I MAY LOSE TOO I GUESS.