mCig Inc (OTCMKTS:MCIG) recently announced that it has officially received three licenses from the California City, California that allows it to cultivate, manufacture and distribute recreational cannabis all through the state. Incidentally, just a few days ago, the diversified company providing dedicated service in the legal cannabis market, successfully secured a management contract of minimum three years with a Sacramento client through its subsidiary Grow Contractors Inc. (GC).
Grow Contractors To Get 10% Of Net Profit Through Sacramento Deal
According to reports, the Sacramento project in which the GC team secured all the required construction permits and competitive city licenses is currently in process and is almost 50% completed. GC will be providing consulting, engineering and design work facilities to the Sacramento client for carrying out production and extraction at the facility.
The project is expected to generate around 10 t0 12 million revenue every year and 10% of its net profit will go to the contractors of GC every month. The company will be using the best and the most advanced lighting including Asgard Concepts and the Thor 1000W HPS. It will also include two complete extraction lines for ethanol, packaging machinery, and automated filling. Earnings reports of GC indicate that the Sacramento deal has already generated revenue of 200k in the current financial quarter. The CEO of GC, Rob Kressa said, “This facility is the third in our plan to create a network of manufacturers and cultivators that are able to produce a better product at a more competitive price.”
MCIG Awarded Three Licenses By California City, CA
California City, California has awarded three licenses to MCIG. The state authorities went through 300 applications and awarded only 16 licenses this time. And it is quite remarkable that MCIG has received 3 out of those 16. The CEO of MCIG’s subsidiary GC, Kressa said that now they will develop a state-of-the-art 30,000 square foot property into “Smart Greenhouse” facility. It will include a 2,000 square foot manufacturing facility for creating extracts and a small distribution center from where the products will be moved to the retailers. As per the company’s estimate, once the facility starts operating in full, it will bring an annual income of around $20M to MCIG.