MCIG Sells Stony Hill Corp. an 80% Stake in its VitaCBD Brand
Monday, February 27, 2017 12:39 PM
HENDERSON, NV / ACCESSWIRE / February 27, 2017 / mCig, Inc. (OTCQB: MCIG), a diversified company focused on the cannabis industry, announced today that it has entered into an asset purchase agreement with Stony Hill Corp. (OTCQB: STNY) for the purpose of pursuing mutually beneficial business opportunities in the Cannabidiol (CBD) Industry. Under terms of the agreement, MCIG will sell the VitaCBD brand to STNY, in exchange for total consideration of $850,000 in cash and common stock, and a 20% stake in VitaCBD, LLC, a subsidiary of STNY.
Paul Rosenberg, President and CEO of MCIG, commented, "MCIG has worked diligently to build the VitaCBD product line, but recognizes the need for a strategic partner to assist in branding and marketing of the product. After months of discussions and negotiations, we believe we have found that partner with Stony Hill. We are very bullish on the future revenue potential of VitaCBD and its ability to create value for our company and its shareholders."
VitaCBD is a highly dedicated group devoted to engineering the purest hemp derived products available. Both hemp and marijuana contain dozens of cannabinoids, naturally occurring chemical compounds, but it is cannabidiol (CBD), in particular, that offers the potential for health and therapeutic benefits without the high. Hemp plants typically contain elevated levels of health-enhancing CBD, but by definition contain only trace levels of THC. This makes the hemp plant attractive to those seeking its potential health benefits as part of an antioxidant-rich lifestyle.
Chris Bridges, President of STNY, stated, "This transaction will expand Stony Hill's platform of products and accelerate its growth strategy in the industry. Stony Hill and mCig will have a synergistic relationship, combining management and personnel with a dedicated focus on the promotion and deployment of the VitaCBD brand. We are excited to have mCig as a strategic partner and a shareholder in Stony Hill."
About mCig, Inc.
Headquartered in Henderson, Nevada, mCig Inc. (OTCQB: MCIG) is a diversified company servicing the legal cannabis, hemp and CBD markets via its lifestyle brands. MCIG has transitioned from a vaporizer manufacturer to an industry leading, large scale, full service cannabis cultivation construction company, with its Grow Contractors division currently operating in the rapidly expanding Nevada market. The company looks forward to growing its core competencies to service the Ancillary legal Cannabis, Hemp, and CBD markets, with broader expansion to take place once federal laws change. For more information, visit www.mcig.org.
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.
CEO of mCig, Inc.
SOURCE: mCig, Inc.