-- Offline and Online Campaign to Include Traditional Media and New Age Media
-- $1 Million Minimum Budget Projected Over Initial Six Month Period
-- $300,000 Non-Cash, Non-Dilutive Agreement Signed with Prince Media for Billboard Placement in Manhattan, Brooklyn, and San Francisco
-- mCig and VitaCig Billboards to be Displayed Starting Next Week in Downtown Manhattan
BELLEVUE, Wash., May 20, 2014 (GLOBE NEWSWIRE) -- mCig, Inc. (OTCQB:MCIG) is pleased to announce the deployment of a national media campaign for mCig and VitaCig products. The campaign marks an important milestone for the company as the business is now positioned to reinvest excess cash-flow generated from the sale of products in growth-based strategies. The company is also pleased to report that its base of near-term capital is at an all-time high consisting of nearly $500,000 in cash, cash equivalents, and inventory held for sale with zero debt and 99% of outstanding orders fulfilled as of May 19, 2014.
It is from this position of strength that the company is launching a national media campaign hoping to unveil our brands and products to the world. It is important to note that currently all mCig and VitaCig sales are generated with virtually zero marketing spend. This indicates that the adoption of our products is taking place virally, via word of mouth, and social media.
By leveraging these attributes, the company has designed a campaign that includes a combination of traditional offline marketing as well as "new-age" online marketing. The offline locations have been selected based on environments and locales that the company believes promote maximum sociability.
The campaign will officially launch on May 22, 2014 with increased tenacity over the next six months. In total, mCig, Inc. will spend a minimum of $1,000,000 on the campaign over the first six months. The projected budget will be capitalized from existing cash resources as well as projected free-cash flow. Any share issuances required to finance this campaign will be done in a non-dilutive manner with management canceling an equivalent amount of shares issued.
The offline campaign will consist of traditional media such as billboards. To that end, the company is pleased to report that it has signed an initial $300,000 non-cash, non-dilutive billboard placement agreement with Prince Media, Co. Prince Media is a boutique billboard company based in Manhattan, New York that manages a portfolio of nearly 50 billboards in Manhattan, Brooklyn, and San Francisco. Starting on May 22, 2014 mCig and VitaCig ads will be slotted for placement on Prince Media billboards in all three cities. Billboards will be rotated such that the ads receive maximum exposure. mCig and VitaCig ads will be displayed on a 40/60 ratio with VitaCig ads receiving 20% more rotation due to the wider target audience. Prince Media has estimated that over the duration of the campaign, the mCig and VitaCig billboard ads will reach 50,000,000 or more potential views. As part of this transaction $300,000 worth of mCig, Inc. stock was issued to Prince Media, Co. Simultaneously, Mr. Paul Rosenberg, CEO of mCig, Inc. canceled an equivalent amount of shares issued.
To view the portfolio of mCig billboard ads please visit: www.mCig.org/media
To view the portfolio of VitaCig billboard ads please visit: www.VitaCig.org/media
To view a list of locations where billboards will be displayed visit: http://gallery.princemediaco.com/
In addition to billboards the company is planning a strategic presence in upcoming music festivals with giveaway booths. Targeted music festivals include: Electric Daisy Carnivals, Coachella Valley Music & Arts Festival, Ultra Music Festival, and other music festivals that appeal to our target demographics.
The online campaign will consist of new-age media such as display advertising, pay-per-click advertising, social media advertising, and re-targeting of customers who visited our website but did not elect to check-out. The company will manage an ongoing campaign with cash from existing operations. It is projected that mCig will contract with the following new-age media outlets for the online campaign: Google, DoubleClick, AOL, Yahoo, Bing, Adroll, as well as others.
The online campaign will be officially launched on June 1, 2014 with increased tenacity over the next six months. In total, the company has budgeted $700,000 for the online campaign over a six month period. This figure may be adjusted upwards or downwards based on conversion rates and returns achieved. The company will be financing this budget from projected cash flow and existing cash resources.
"Since launching the mCig 2.0 on January 14, 2014, and the VitaCig on April 15, 2014, we have experienced tremendous growth. We have seen tens of thousands of customers from over 30 countries purchase products directly from our websites and share their experiences online via the internet and social media. It is incredible to consider that this alone has been the only source of momentum underlying our growth. "
"I believe that our business is now on the cusp of achieving ubiquity within our target demographic. In order to achieve this ubiquity our brands must expand their reach via traditional marketing activities. Now is the time to initiate such expansion given that we are well capitalized and have finally worked through the logistical issues that lead to unnecessary order fulfillment delays."
"Investors can rest assured that we will employ the same financial prudence we have in the past and avoid debt at all costs when pursuing these strategies. I would like to thank all our customers and investors for being supportive of our company and helping to spread the word on our products. For those of you living in Manhattan, San Francisco or Brooklyn, be sure to check out our billboards. Welcome to the next stage of our growth! " said Paul Rosenberg, CEO of mCig, Inc.
About mCig, Inc.
mCig, Inc. (OTCQB: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 manufactures and retails the mCig – the world's most affordable vaporizer priced 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. The company also owns Vapolution, Inc. which manufactures and retails home-use vaporizers such as the Vapolution 2.0. Through its wholly owned subsidiary, VitaCig, Inc. the company manufactures and retails the VitaCig, a $2 nicotine-free eCig that delivers a water-vapor mixed with vitamins and organic flavors. Through its wholly owned subsidiary, LiqCig, Inc. the company is engaged in the development of the world's first pre-packaged alcoholic eCig. See more at: http://www.mCig.org/, www.Vapolution.com, www.VitaCig.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 followed by another acquisition in February 2014 by Altria Group Inc. of Green Smoke for $150 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. (OTCQB: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.
CONTACT: Paul Rosenberg CEO (425)462-4219Source:mCig, Inc.