The legal U.S. retail cannabis sales is expected to grow by 17% in 2017, due to the recent state legalizations of legal marijuana use. According to Brightfield Group, indicated the industry sales could reach $5.7B in 2017, which is primarily attributed to a potential 25% rise in recreational sales and a 13% rise in medicinal marijuana use. Moving on, mCig Inc (OTCMKTS: MCIG) is one stock poised to continue its rise, despite experiencing a drop recently, which could be due to profit taking. The stock has had an impressive rise of over 350% over the last year, and it could ride on the coattails of the marijuana industry growth.
Now, if you have never heard of mCig Inc, it’s a diversified company engaged in the servicing of legal CBD, cannabis and hemp markets through its lifestyle brands. Moreover, mCig recently expanded and crossed over to the full service, large scale and leading cannabis cultivation construction company, and it’s currently operating in Nevada. The company was originally a vaporizer manufacturer, but it’s looks like it could break into this fast growing cannabis market.
That in mind, mCig Inc (OTCMKTS: MCIG) recently received some good news, but it seems as if some traders may be taking some profits, to be prudent. However, the overall potential growth in the cannabis industry should push the stock higher. Moreover, it recently announced some good news, which could also be other catalysts that lead to potentially higher returns for mCig Inc.
The company recently reported earnings and released news stating it would build the largest indoor grow facility in Oregon. Let’s get into mCig Inc’s financial results first. MCIG reported over a 400% increase in its revenue, when compared to the same quarter in its last fiscal year. For the period ended on January 31, 2017, the company reported revenue of $1.36M, compared to just $249K for the fiscal quarter ended on January 31, 2016, that’s a 446% increase.
Additionally, the company reported gross profit of $288K for the quarter, compared to $85K in the same quarter for the previous fiscal year, a 239% increase. Additionally, mCig strengthened its cash position to $420K, compared to just $80K in the same quarter in 2016. Consequently, the company could dip into its cash and cash equivalents to potentially expand. Finally, the company increased its current assets to $1.259M from $93K, over a 1,000% increase year over year. Consequently, the company has shown its ability to grow, and it could continue its growth over the long term, if it properly executes its strategy.
The company also received news of Grow Contractors selecting mCig inc as its builder of choice for the first large scale indoor grow facility in Oregon for Forest Grove Cultivation. Now, this would be a state-of-the-art facility with over 100K square feet, and it’s expected to be a top ranked grow space. That said, the first phase of building was permitted for 50K square feet, and mCig Inc expects to begin construction soon. Moreover, this project could generate over $1.9M, which could further increase the company’s revenue growth.
According to Grow Contractors CEO Rob Kressa, “Our sweet spot is definitely large scale growers on the West Coast. They understand the real deal while the East Coast is still getting played by opportunists looking for a quick buck. We are here to stay and will do multiple phases and build outs for the best players.”
Now, the recent developments could be an indication that MCIG is poised to grow over the long term. However, it was up over 300% recently, and some traders and investors might be taking some profits now. If you’re considering MCIG, you should stay on top of company news and potential changes in the industry. It’s hard to stay glued to your screens or phone all day, but you could stay up to date on MCIG by simply entering your email to subscribe to our free newsletter, and you’ll get an email if there’s any developments in the stock.