BEVERLY HILLS, CA--(Marketwired - Jun 29, 2015) - mCig, Inc. (OTCQB: MCIG), a leading provider of technology, products, and services for consumers, manufacturers, dispensaries, and growers within the global medical and recreational marijuana industry, announced today that the Company has signed a letter of intent agreement ("LOI") to acquire Security Grade Protective Services, Inc., a full-service security firm specializing in the cannabis industry.
The acquisition is expected to close on or before July 19, 2015. Security Grade has generated $560,000 in revenue with a 40 percent profit margin in the first half of 2015 and is on target for $1.3 million by fiscal year end. With nearly 100 percent growth year over year, revenues from Security Grade are expected to earn mCig $2.5 million in 2016 as the Company realizes its marketing and sales efforts for its systems and services in states beyond Colorado.
"This acquisition of Security Grade is just one of many product and service offerings we plan to bring into the mCig portfolio to become a one-stop shop for the cannabis industry," said Paul Rosenberg, CEO of mCig. "The sale of specialized security products and services ties in strategically with the Company's new sales approach of directly targeting cannabis growers and dispensaries on a national scale. We are moving very aggressively to reach our $10 million revenue target for 2015. The Company will continue to pursue key acquisitions of products, services, intellectual property and human capital that add revenue and help to propel the Company in the future."
"We are pleased to be joining the mCig team, as their experienced global sales network and operational resources will provide an even greater opportunity for national expansion and growth," said Derek Porter, CEO of Security Grade Protective Services, Inc. "We found a natural synergy with mCig and feel it will offer the most comprehensive array of products and services to the industry."
mCig continues to seek qualified acquisitions in the cannabis industry. For more information and to submit an acquisition proposal, please contact acquisitions@mcig.org.
About mCig, Inc.
mCig, Inc. (OTCQB: MCIG), operates as a Master Distributor for cannabis-related products; identifies and capitalizes on opportunities in the pharma sector of the cannabis industry; provides financing for innovative cannabis-related businesses; and creates technological solutions and applications for the industry. The mCig E-Cigarette and Portable Vaporizer Division provides a full range of smoking products for retailers and distributors, from disposable smoking devices to high-end heirloom pieces. The mCig CBD Hemp Oil Division houses the growing Chill product line and related nutraceuticals based on natural compounds found in cannabis and hemp plants. The mCig Software Division provides growers, dispensary owners, retailers, and others within the cannabis industry the software infrastructure they need to do business. The mCig Construction Division provides turnkey solutions for new and existing cultivators that allow for tightly controlled optimized growing environments. The mCig Technology and Consulting Division provides stakeholders who want to enter the cannabis industry, or want to improve their existing operations, the opportunity to access and capitalize on a vast pool of industry experience. The company is headquartered in Beverly Hills, California. Follow mCig Inc. on Twitter at @mCigs.
About Security Grade
With more than 100 years of combined experience, Security Grade designs and provides custom security solutions for the cannabis industry, including the use of electronic security systems; mobile controlled alarms; security guards; and managed IT and information security solutions. Strict state-mandated regulations require robust electronic security systems and personnel for grow operations and dispensaries, not to mention a need for the protection of often millions of dollars in inventory and the safe transport of product and cash. Security Grade's technology and armed personnel are designed to protect the cannabis industry's assets while also bringing unique training and experience for the direct interaction with medically fragile patients and family that may be coming into these storefronts to buy medication. For more information visit http://www.securitygrade.com/
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.