mCig, Inc. (Stock Symbol: MCIG) April 2014 Investor Presentation

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INVESTOR PRESENTATION – APRIL 2014

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mCig, Inc. Monthly Presentation

Transcript of mCig, Inc. (Stock Symbol: MCIG) April 2014 Investor Presentation

Page 1: mCig, Inc. (Stock Symbol: MCIG) April 2014 Investor Presentation

INVESTOR PRESENTATION – APRIL 2014

Page 2: mCig, Inc. (Stock Symbol: MCIG) April 2014 Investor Presentation

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Any statements contained in this presentation 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.

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FUNDAMENTALS

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LSAbout 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.

In the marijuana industry mCig is a leading manufacture of portable vaporizers such as the mCig 2.0 and traditional vaporizers such as the Vapolution 2.0.

In the eCig industry, mCig operates a subsidiary: VitaCig, Inc. which is leveraging eCig technology to develop nicotine-free medicinal and nutritional products such as the VitaCig.

mCig operates another subsidiary: LiqCig, Inc. which is developing the world’s first pre-packaged Alcoholic eCig.

Stock Information Management Team

• Paul Rosenberg – Chief Executive Officer

• Mark Linkhorst - Chief Operating Officer

• Patrick Lucey – President , Vapolution, Inc.

• Chad Shaffer - Chief Operating Officer, Vapolution, Inc.

PCAOB Auditors

De Joya Griffith

1 Liberty Plaza, 23rd FloorNew York, NY 10006Phone 212.531.1600Fax 702.920.8049

http://www.dejoyagriffith.com

Stock Market Symbol: mCig

Common Shares Outstanding 270,130,000

SEC Regulation Yes – Fully Reporting

Link to SEC Filings: Click Here

Insider Ownership 50.1%

Corporate Transfer Agent

Island Stock Transfer

15500 Roosevelt BoulevardClearwater, FloridaPhone 727.289.0010Fax 727.289.0069

http://www.islandstocktransfer.com

Page 5: mCig, Inc. (Stock Symbol: MCIG) April 2014 Investor Presentation

THE OPPORTUNITY - VAPORIZERS

“During the Gold Rush, most gold miners lost money, but people who sold them picks, shovels, tents and blue-jeans (Levi Strauss) made a nice profit.”

Peter Lynch

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NCannabis (AKA) Marijuana

Marijuana is the third most popular recreational drug in America (behind only alcohol and tobacco), and has been used by nearly 100 million Americans. According to government surveys, some 25 million Americans have smoked marijuana in the past year, and more than 14 million do so regularly despite harsh laws against its use.

Legalization and Decriminalization Trend

Following the global economic crisis of 2008 a renewed effort was made by the marijuana lobby for both decriminalization of the herb as well as legalization. This push was ultimately successful as the prospect of taxing marijuana like alcohol or tobacco represented an inflection point in the conversation for the merits of legalization. This culminated in marijuana being fully decriminalized and even legalized for adults 21 and up in the states of Colorado (Amendment 64) and Washington (Initiative 502). Colorado and Washington represent only the start of this trend. On January 16th, 2014, cannabis was legalized in five more states under federal law. These states are the following: Hawaii, Kansas, Alaska, Michigan, and Rhode Island. On a Federal level, there have been important developments as well. Most recently US Attorney General Eric Holder in a speech to the House of Delegates indicated that he had mandated a review and modification of all Justice Department policies relating to the sentencing of non-violent drug offenders.

Market Size in Billions of Dollars per Year

USA Legalized (WA & CO) $1.5 Billion today $6.0 Billion by 2018

USA Legalized All States $60 Billion

Global Current Illegal $150 Billion

Global Marijuana Users 150 million

USA States with Legal Marijuana Laws Marijuana Business Opportunity

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ELmCig, Inc. – A “Pick and Shovel” Marijuana Company

mCig operates a simple business model: We develop cutting edge vaporizers for the recreational and medicinal marijuana community at disruptive price points. In addition to being disruptive on price, we also believe in the “Open-Source” model allowing our customers to heat up the plant material of their choice, as opposed pre-packaging our vaporizers with plant material.

First Mover Advantage Where it Counts

A “first mover” advantage only matters when you are focused on delivering unique customer experiences and building brand affinity. Most marijuana companies have chosen to grow marijuana a highly commoditized and competitive plant. We chose to develop and incubate brands that will resonate within the community and allow us to generate high volume, recurring sales.

We operate two such brands:

Pick and Shovel Business Model

Founded in 2000, Vapolution is a leading producer of home-use herbal vaporizers such as the Vapolution 2.0. The Vapolution is sold in over 11 Countries, and 20 distribution points. Cumulative revenues of over $2 million since founding without spending any capital on marketing. www.vapolution.com

Founded in 2013, mCig is a leading producer of portable herbal vaporizers such as the mCig 2.0 – a $10 purpose built herbal vaporizer that has generated sales in over 20 countries and significant buzz. www.mCig.org

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PRODUCT CATALOG

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mCig, Inc. – A “Pick and Shovel” Marijuana Company

Since 2013, mCig has developed two iterations of its flagship product. The mCig 1.0 which was released in November 2013, and the mCig 2.0 which was released in January 2014. In February 2014, we released our Made in USA Hand Blown Glass Inserts which allow customers to enjoy an even cleaner vaporizing experience by inserting plant material into the glass and then dropping the glass into the mCig 2.0 heating chamber.

Product Catalog – mCig Product Catalog - mCig, Inc.

Product Details Product Image

• mCig 1.0 • World’s Most Affordable Vaporizer• Released in November 2013 – Sold Out in

10 days• Collectors Item

• mCig 2.0• Next Generation Technology• Multi-Voltage• Made in USA Glass Insert – True Vape• Wider Chamber, More Battery Power• Same Price ($10)

mCig 3.0 Update• R&D Ongoing• Scheduled for Q3 2014

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mCig, Inc. – A “Pick and Shovel” Marijuana Company

Since 2000, Vapolution has developed two iterations of its flagship product. The Vapolution 1.0 which was released in November 2003, and the Vapolution 2.0 which was released in July 2013. In March 2014, we launched a rebranded Vapolution.com website with an optimized online sales engine and a newly designed logo.

Product Catalog – mCig Product Catalog – Vapolution, Inc. (100% Owned Subsidiary)

Product Details Product Image

• Vapolution 1.0 • First electronic vaporizer to offer a

complete glass air path.• First to offer a custom built glass lined

heater.• Vapor taste and flavor still sought after

today.

• Vapolution 2.0 • Total Redesign• Remains the only Vaporizer with an all

glass vapor path. • Made in USA Glass• MSRP is 20% lower than 1.0

Vapolution 3.0 Update• R&D Ongoing• Scheduled for Q4 2014

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CORPORATE STRATEGY – HERBAL VAPORIZERS

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Branding

Our Process Model

Within our Vaporizer segment, we will continue to focus on being disruptive both on price and innovation delivering our customers quality experienced at affordable prices. We will continue to focus on entrenching our brands within the community and aligning ourselves with thought leaders, individuals, and companies that are well respected.

We will develop two new iterations of our flagship devices in 2014: Vapolution 3.0 and mCig 3.0.

Innovate

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Disrupt

Grow

We will continue to market our products via social media and industry specific functions. We will produce several videos that will continue to be distributed to our viral audience of over 100,000 twitter followers and thousands of Facebook followers. We will also continue to align our brands with potential celebrity endorsements where we feel the celebrity speaks to the sensibilities of our target demographic.

Business Outlook Q2-Q4 2014

mCig 2.0 Video Commercial

Below is an example of a Video Ad we produced for the mCig 2.0. This video has gone viral achieving over 10,000 organic views in less than 30 days. This is especially impressive given that we did not spend a cent on marketing this video. Click below to view:

Launch of Affiliate Marketing Program

In the last week of March 2014, mCig quietly launched an online affiliate marketing program. The company believes that affiliate marketing is consistent with other low-cost/high impact marketing strategies that will help increase adoption of the mCig 2.0 as well as our other line of products.

Inventory Increases and Supply Constraints

Management has resolved all supply constraints and estimates that by April 7th the company will maintain its first inventory surplus since launching the mCig 2.0 on January 14, 2014.

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THE OPPORTUNITY – ELECTRONIC CIGARETTES (ECIGS)

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ETTESElectronic Cigarettes (eCigs)

eCigs are electronic devices comprised of a small lithium-ion battery and an atomizer that vaporize a nicotine liquid. As nothing is being burned, the result is a clean delivery of nicotine without the negative effects of tar, smoke, or second hand smoke. mCig, Inc. operates within the eCig industry by leveraging mobile vaporization technology for innovative new applications.

What Goldman Sachs Says: (From Report Entitled: Top Disruptive Technologies August 2013)

Electronic Cigarettes – (eCigs)

Mergers and Acquisitions in the eCig Space

Date Suitor Company Acquired Transaction Value Source

2/03/2014 Altria Group, Inc. (NYSE: MO) Green Smoke, Inc. $110,000,000 Altria

10/1/2013 Lorillard Inc. (NYSE: LO) Skycig, UK $50,000,000 Lorillard

4/25/2012 Lorillard Inc. (NYSE: LO) Blu Ecigs, Inc. $135,000,000 Wall Street Journal

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Taking the same innovative approach we applied to the marijuana industry, management decided to avoid direct competition with the ultra-competitive and highly fragmented eCig industry. Instead, we developed a niche product by embracing the potential of eCig technology (the ability to easily vaporize pre-packaged liquids from a pocket-sized device) as a medical delivery device. In the fall of 2013 we began working on the new product codenamed: “Vita”. We incorporated a new subsidiary: VitaCig, Inc. and developed the “VitaCig” - a nicotine-free eCig that delivers a vapor mixed with vitamins and natural flavors. We believe that VitaCig can become another game-changing product and category killer.

VitaCig – 100% Owned Subsidiary

As far as we know, there does not exist a product comparable to Vitacig on the market. We believe the Vitacig will cannibalize both the existing eCig market as well as the e-Hookah markets by providing a superior, enjoyable experience without the nicotine or overly sweet flavors. This product will appeal to a wide market including: Smokers looking to quite, Smokers looking to reduce nicotine consumption, non-smokers.

VitaCig – eCig as Medical Delivery Devices

• Disposable• 500 Puffs• Shiny Metallic Colors• Every Vitacig contains a base of: Vitamins A,

B, C, E and CoQ10 (Ubidcarenone) • Refresh – Mint + Peppermint Flavor and

Eucalyptol• Relax - Blueberry and Black Currant flavor

+ B-myrcene• Energize – Orange + Grapefruit flavor +

Limonene.

• VitaCig production has commenced with initial inventory expected first week of April.

• VitaCig website is in final stages of development.• VitaCig Online Payment Systems have been

optimized for launch.• VitaCig viral marketing strategies have begun to

be implemented. • Launch Date Estimated: April 20th, 2014

“VitaCig consumer response thus far is beyond anything we expected”

Mark Linkhorst, CEO VitaCig, Inc.

VitaCig – Milestones Achieved to Date

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As with VitaCig where management recognized the potential for mobile vaporization technology in medical delivery applications, the idea for LiqCig was developed internally towards the end of 2013. Before proceeding, Management engaged a team of third party scientists to test both the efficacy and technical process that would result in the delivery of alcoholic vapor. After being convinced of the technical merits and scientific efficacy this project was advanced. Unlike with mCig, Vapolution, or VitaCig, LiqCig will be incubated for a longer period of time with the ultimate objective of retailing LiqCig’s with licensed well-known alcoholic brands. Management believes this business strategy will result in higher margin profitability over the long-term and has greater potential to disrupt the $1.3 Trillion Alcoholic Beverage Industry.

LiqCig, Inc. – 100% Owned Subsidiary

LiqCig, Inc. – eCig Technology Disrupting Recreational Alcohol Consumption

• Calorie-Free Alcoholic Consumption• Planned Distribution by Regulated Alcoholic

Channels• Disposable and Recyclable• Pre-Packaged With Licensed Alcoholic

Brands• Initial testing for three spirit categories:

Vodka, Tequila, Rum.

“The LiqCig has the potential to significantly disrupt the existing Alcoholic Beverage Market by providing a superior method for the consumption of alcohol recreationally.”

Paul Rosenberg, CEO mCig, Inc.

$0

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$1,000

$1,500

Tobacco Industry AlcoholicBeverage Industry

Alcoholic Beverage Sales vs. Tobacco Industry Sales ($BN) Source:

Marketline

2010 2015

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VITACIG, INC.– SPIN-OFF AND DIVIDEND TO MCIG SHAREHOLDERS

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On February 3, 2014, mCig officially unveiled VitaCig, Inc. our 100% owned subsidiary. While mCig management is extremely excited about the prospects of VitaCig, we believe that at its core the VitaCig business model and potential is a separate storyfrom that of mCig which is exclusively focused on the Cannabis market. As a result, we decided to spin-off VitaCig, Inc. on a 1:1 basis to mCig, Inc. shareholders. The result will be that every owner of one (1) share of MCIG will receive one (1) share of VitaCig, Inc as a free dividend.

On February 24, 2014 mCig, Inc. Board of Directors approved the VitaCig, Inc. stock dividend that would result in the spin-off. As part of this decision Mr. Paul Rosenberg, Chairman and CEO of mCig, Inc. agreed to contribute his pro-rata rights to the VitaCig, Inc. dividend (representing 244,931,627 shares) to mCig, Inc. This will result in mCig, Inc. owning 49% of VitaCig, Inc. with mCig public shareholders and other members of management owning the remaining 51% (representing 255,203,373 shares). This also means that 244,931,627 shares of VitaCig, Inc. will be included on mCig’s balance sheet in future quarters, and providing a dilution-free mechanism for raising capital if required.

VitaCig Post Spin-Off Capital Structure

VitaCig Spin-Off and Dividend to mCig, Inc. Shareholders Update

mCig, Inc.49%

Public Shareholders

51%

VitaCig, Inc. Post-IPO

I Am An mCig, Inc. Shareholder What Does All This Mean?

Simply, if you are an mCig shareholder and hold your shares through the record date (which will be announced shortly) you will receive 1 free share of VitaCig, Inc. When VitaCig lists on the stock market, you will be free to do as you please:

• Sell VitaCig shares and keep mCig shares for pure Cannabis/Marijuana Exposure

• Sell mCig and keep VitaCig for pure eCig Exposure• Sell Both• Keep Both as long-term investments.

Page 19: mCig, Inc. (Stock Symbol: MCIG) April 2014 Investor Presentation

MCIG – THE PATH TO A POTENTIAL UPLISTING

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mCig, Inc. (OTCQB: MCIG) currently trades on the OTC QB Exchange. The OTC QB is regulated by FINRA and the SEC however there are no financial listing requirements. As a result, companies trading on the OTC QB are often perceived as inferior withinthe investment community and for the most part do not receive institutional investment from the likes of Mutual Funds, Pension Funds, Hedge Funds, and Insurance Companies. While mCig, has enjoyed its time on the OTC QB and believes that the exchange is extremely important for capital formation of early stage companies, it is our objective to meet the financial standards required for an up listing to a National Stock Exchange. While such an up listing does not guarantee us financial success (only hard work and increased adoption of our products can achieve that) it could significantly change our prospects for access to capital as well as increase the notoriety of our brand and products.

Why Up list?

National Exchanges and Financial Listing Requirements

There are two primary National Exchanges in the US: The NADSAQ and the New York Stock Exchange (NYSE). Below are the listing requirements for both exchanges:

Listing Requirement Nasdaq Capital Market

(Rule 505a 505b2)

NYSE MKT

(Standard 2)

MCIG Current (Pro

Forma Q1)*

MCIG Following

VCIG Listing @ $.05

Shareholder Equity $4,000,000 $4,000,000 $1,287,419* $13,525,500

Value of Publicly Held Shares $15,000,000 $15,000,000 $102,500,000 $102,500,000

Market Capitalization $50,000,000 Not Required $115,000,000 $115,000,000

Publicly Held Shares 1,000,000 1,000,000 250,000,000 250,000,000

Shareholders 300 400 4,000+ 4,000+

Market Makers 3 Not Required 30 30

Stock Price $4.00 $2.00 $.43 $.43**

*The company expects to report an increase in shareholder equity from negative ($48,769) to positive $1,287,419 (unaudited) in the upcoming quarter. While we are providing this guidance in this presentation we remind investors that this figure is unaudited and has yet to be reviewed by our independent auditor. Accordingly we must reserve the right to restate this figure prior to the publication of our 10Q .

**The minimum share price of either $4.00 or $2.00 can be achieved by conducting a reverse stock split simultaneously with an up listing approval. For example: An 1:5 (1 for 5) split would result in a $2.12 share price while still keeping mCig above all the other required thresholds.

As can be seen in the table above, mCig already meets 5 out of 7 listing requirements for both NASDAQ Capital Market and NYSE MKT. The only two barriers that remain are Shareholder Equity and Minimum Stock Price. The minimum stock price is purely technical and can be resolved by initiating a reverse stock split . Alternatively, if our shares appreciate past the minimum threshold we may not require a reverse stock split. Management believes that the shareholder equity requirement should be met with the listing of VitaCig, Inc.

Page 21: mCig, Inc. (Stock Symbol: MCIG) April 2014 Investor Presentation

STOCK PERFORMANCE AND ANALYSIS

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November 2013

December 2013

January 2014

February 2014 March 2014

Stock Price (Low –

High)

$.07 - $.12 $.09- $.15 $.10- $.24 $.24-.43 $.47-.92

Avg. Share Volume 390,000 750,000 2,000,000 3,500,000 5,978,790

mCig, Inc. Stock Performance Chart & Analysis

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mCig, Inc. Press Releases & Announcements (Last 6 Months)

Monday, March 17, 2014mCig, Inc. Achieves First Quarterly Profit in Corporate History GlobeNewswire( (Mon, Mar 17)Friday, February 28, 2014mCig, Inc. Publishes March 2014 Investor Presentation GlobeNewswire( (Fri, Feb 28)Tuesday, February 25, 2014mCig, Inc. Provides Update on VitaCig Spin-Off and Pro-Rata Dividend to Shareholders GlobeNewswire( (Tue, Feb 25)Tuesday, February 18, 2014mCig, Inc. Elevates mCig 2.0 by Introducing Made In USA Glass Inserts GlobeNewswire( (Tue, Feb 18)Thursday, February 6, 2014mCig, Inc. - Grammy Award Winning DJ Swivel to Become First Brand Ambassador GlobeNewswire( (Thu, Feb 6)Monday, February 3, 2014mCig, Inc. Publishes First Investor Presentation and Officially Unveils VitaCig, Inc. GlobeNewswire( (Mon, Feb 3)Friday, January 24, 2014mCig, Inc. Acquires Vapolution, Inc., Entering Traditional Vaporizer Market GlobeNewswire( (Fri 8:40AM EST)Friday, January 10, 2014mCig, Inc. Officially Launches mCig 2.0 -- World's Most Affordable Personal Vaporizer GlobeNewswire( (Fri, Jan 10)Thursday, December 19, 2013mCig, Inc. Provides Update on mCig 2.0 Launch GlobeNewswire( (Thu, Dec 19)Tuesday, December 3, 2013mCig, Inc. Provides Corporate Update -- Reduced Authorized Shares, New COO Appointment GlobeNewswire( (Tue, Dec 3)Tuesday, November 12, 2013mCig, Inc. Sells Out of Initial Inventory -- Provides Corporate Update GlobeNewswire( (Tue, Nov 12)Thursday, November 7, 2013mCig, Inc. Now Accepting Bitcoin as Payment Method Via CoinBase GlobeNewswire( (Thu, Nov 7)Thursday, October 31, 2013mCig, Inc. Officially Launches the mCig - $10 Herbal Electronic Cigarette (eCig) GlobeNewswire( (Thu, Oct 31)Monday, October 21, 2013mCig Launches WDR Program - Laying Foundation For Retail Distribution Network GlobeNewswire( (Mon, Oct 21)Tuesday, October 8, 2013mCig Announces CEO Interview by Noted Investment Analyst Alan Brochstein Marketwired( (Tue, Oct 8)

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National Coverage of Marijuana Stocks and MCIG

Pot Shares Rally 21% to 1,700% as Speculators See Green at Bloomberg(Thu, Jan 9 2014)

Capitalizing On Cannabis: An Interview With CEO Of Mcig – Seeking Alpha (Oct 8, 2013)

Pot penny stocks smoking on rise of legalization – CNBC (Thu, Jan 9, 2014)

Colorado made history as the first state in the U.S. to legalize marijuana for recreational use. NBC News correspondent Harry Smith tells the story behind this stunning development, which has been called one of the great social experiments of the next century. Click on image below to watch the one hour special:

CNBC One Hour Special “Marijuana In America”

Jane Wells Interviews Mark Linkhorst, COO of mCig, Inc. at KFI AM640 (Fri, Mar 28 2014)

CNN Special “Weed 2” – Dr. Sanjay Gupta

"Weed 2: Cannabis Madness: Dr. Sanjay Gupta Reports," premiered Tuesday, March 11 at 10 p.m. ET, and examined U.S. federal laws that consider marijuana a drug with no medicinal value and serious scientists who say they're wrong. It is the politics of pot - the politicians vs. the patients:

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ALYSISmCig, Inc. – An Outlier Amongst The Marijuana Stocks

mCig is the only company in the “Cannabis Index” to have US GAAP profits, be SEC regulated, adhering to higher corporate governance and reporting standards, as well as having zero debt. mCig, Inc. management is strongly opposed to “Toxic Debt” which results in perpetual growth in shares outstanding.

Since entering the space, mCig has issued less than 200,000 shares to employees as compensation. Most of the other components of the index have seen increases of 20-70% in their shares outstanding.

Warren Buffet has stated that investors should always focus on whether companies are supplementing their growth with share issuances.

Company Name Symbol SEC Regulated

Shares Outstanding

ToxicDebt

Market Cap. US GAAPProfits

Medbox, Inc. MDBX NO 14,475,375 YES $445 million No

Medical Marijuana, Inc.

MJNA NO 947,607,961 YES $273 million No

Growlife, Inc. PHOT Yes 806,090,859 YES $463 million No

Hemp, Inc. HEMP NO 1,649,949,387 YES $170 million No

Cannabis Sciences, Inc. CBIS Yes 761,323,906 YES $144 million No

Terra Tech, Inc. TRTC Yes 252,802,141 YES $291 million No

mCig, Inc. MCIG Yes 270,135,000 NO $195 million YES

“At Time Warner, I had ten percent of the stock after the merger. But when we merged with AOL, I was diluted down to three percent.”

Ted Turner

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THANK YOU FOR YOUR TIME