Nevada-based mCig, Inc. (MCIG), announced that the company will spin-off its technology division GigeTech Inc. as a stand-alone public company. As a result of the spinoff, mCig shareholders will get shares in the proposed public entity based on their holdings in MCIG. mCig Inc. said in a statement that it expects to file the appropriate documents with the SEC within the next 45 days.
According to a company statement, “The implementation for a spin-off was originally planned from the beginning, during the initial establishment of GigeTech, Inc., MCIG’s technology subsidiary, which provides a wide range of services such as software solutions, advertising, e-commerce, advisory services and consultations, financial services, blockchain integrated technologies, product design, branding, and various other technology offerings.”
“We are astounded as to how quickly we have come to the execution of this plan. Many of our shareholders have probably wondered if we had a clear vision of where we want to go with MCIG. Rest assured we have! As we have begun the process of moving in the direction of cultivation, distribution, and production in both Nevada and California (while reviewing other states as well), we have systematically divested ourselves of businesses that will continue to provide us resources to achieve our end goal. These divestitures have and continue to create cash flow, allowing us to maintain our ‘ZERO TOXIC DEBT’ mantra. This solidifies our continued growth and will allow us to achieve a higher profit margin, thus increasing shareholder wealth,” said Paul Rosenberg, MCIG’s Chief Executive Officer. He went on to say, “Spinoffs are a great way to enhance shareholder value and it will continue to be a major part of our business model.”
The move will allow for GigeTech to expand its operations into other markets and industries while continuing to provide solutions and expand its services in the cannabis space. Most recently, GigeTech entered into an agreement for the use of its proprietary advertising technology with its first non-cannabis related customer.
mCig, Inc. is a diversified company servicing the legal cannabis, hemp and CBD markets via its lifestyle brands. mCig, Inc. has transitioned from a vaporizer manufacturer to a large scale, full-service cannabis cultivation construction company with its Grow Contractors division currently operating in the Nevada market. Cig, Inc. also employs a tech team and has recently entered the tech space to satisfy its evolving role in technology and in keeping its growing following up to speed.
The stock has risen 140% over the past year and was lately trading at 16.5 cents.