mCig Inc. (OTCMKTS:MCIG) lost 2.97% in the last trading session to close the day at $0.17 after hours of trading following the announcement of record revenue from its Cannabis Supply division.
The company indicated that its subsidiary Cannabis Supply in the cannabis supply sector had witnessed considerable growth and in the last quarter it had record sales that exceeded estimates. Cannabis Supply represents the company’s expansion strategies into the provision of supplies to growers, distributors, manufacturers as well as retailers in the cannabis industry.
Record sales since inception
Since the inception of the company, this quarter’s sales are the highest for the company in which they recorded revenue of approximately $650K. The company represents sales of mCig’s cannabis products in the states of California and Nevada. Following the record revenue for this quarter the company is on course of beating analyst estimates and exceed $2.5 million in cannabis products sales for their fiscal year expected to end on 30 April 2019.
The high sales for the division can be attributed to its first large order that it received from Cannabis Company in Canada which they expect to honor in the next quarter.
Expansion to other states
As part of their growth strategy, the company to different states and internationally and they are poised to attain record sales in the upcoming quarter as more customers continue to order compliance supply from the subsidiary. mCig has expanded into California and other states and last month they signed an MoU with a California firm for growing processing as well as distribution cannabis products in the state under the licenses of mCig.
Speaking on the record revenue, MCIG CEO, Paul Rosenberg, stated that the Cannabis Supply management team had done a fantastic job to achieve record sales in the quarter thus expending the business. He added that the company had gained a foothold over its competitors in cannabis supply because of the wide range quality selection of product the company offers, great customer service as well as their competitive pricing. Going into 2019, mCig expects the Cannabis Supply Division to continue with the momentum of the last quarter and achieve more sales.