mcig, inc. (stock symbol: mcig) may 2014 investor presentation

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INVESTOR PRESENTATION MAY 2014

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

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

INVESTOR PRESENTATION – MAY 2014

Page 2: mCig, Inc. (Stock Symbol: MCIG) May 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.

Page 3: mCig, Inc. (Stock Symbol: MCIG) May 2014 Investor Presentation

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 leverages 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 as of 5/5/2014

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) May 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

Page 6: mCig, Inc. (Stock Symbol: MCIG) May 2014 Investor Presentation

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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

Page 7: mCig, Inc. (Stock Symbol: MCIG) May 2014 Investor Presentation

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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

Page 8: mCig, Inc. (Stock Symbol: MCIG) May 2014 Investor Presentation

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 – CE Mark Compliant• 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

Page 11: mCig, Inc. (Stock Symbol: MCIG) May 2014 Investor Presentation

CORPORATE UPDATE– MAY 2014

Page 12: mCig, Inc. (Stock Symbol: MCIG) May 2014 Investor Presentation

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Several Non-Disclosure Agreements Signed

SEC Filing Amendment Clarification

For the month of April 2014, mCig, Inc. generated record sales figures led by continued adoption of our devices, timely deliveries in the first weeks of April, and a live segment on CNBC which highlighted the mCig, Vapolution, and VitaCig products leading to new sales records on almost every previous metric. The company is cautiously growing its inventory levels of the mCig 2.0 and VitaCig as we grow confident in projecting future sales. Our balance sheet is stronger than ever with over $400,000 in cash and cash equivalents at the end of April plus ample inventory to fulfill all outstanding orders for mCig 2.0 and VitaCig.

We are beginning to see traction in our celebrity branding endeavors. Several Non-Disclosure Agreements (NDA’s) have been executed between mCig, Inc. , VitaCig, Inc. and well-known celebrities. The company believes that our branding strategy is headed in the right direction with grass-roots adoption of our devices by well-known thought leaders such as Rick Ross who tweeted his support for the mCig to over 2 million followers.

Business Update

VitaCig Video Advertisement

With the launch of VitaCig on April 15, came the VitaCig video ad which we produced and distributed virally. The video achieved nearly 20,000 views in less than 12 days.

National Media Attention CNBC

In the month of April, mCig achieved its first national media attention from the business news channel CNBC. In a segment on the emerging cannabis industry, CNBC’s Jane Wells discussed mCig, Inc. and our line of products as well as interviewed COO Mark Linkhorst, and Vapolution, Inc. President Patrick Lucey. Towards the end, Jane Wells puffed on a VitaCig on Live Television. To view the segment in its entirety click here.

CNBC Attention Leads to New Sales Records

The CNBC Attention led to two major sales records of $28,400 on April 7, 2014 followed by another sales record of $45,800 on April 8, 2014 with continued sales and orders coming in significantly above our previous average for the remainder of April. Unfortunately, this barrage of orders led to rapid inventory draw-down beyond even the most optimistic inventory management projections. This in turn led to a disappointing 10-14 day delay in fulfilling several thousand orders. As of May 5, 2014, 95% of these orders have been fulfilled and inventory levels are back to those which allow for the fulfillment of orders within our targeted 24-48 hours.

As part of a routine SEC Examination of our corporate filings, the staff at the SEC recommended that mCig, Inc. amend certain of its filings including the Convertible Preferred Agreement between mCig, Inc. CEO Paul Rosenberg and the Company. The SEC’s logic, which we ultimately agreed with, was that in order for Mr. Rosenberg to contribute his pro-rata share of the VitaCig, Inc. dividend to mCig, Inc. his preferred rights would need to be convertible on-demand. This was the only motivating factor for the filing of the amended agreement. As per SEC regulation, any conversion between Preferred and Common stock would require several disclosure filings to the public and ample notice. As Mr. Rosenberg has no intention to convert these shares at present no such disclosures have been made, and the current outstanding common shares in mCig, Inc. remain 270,135,000.

Page 13: mCig, Inc. (Stock Symbol: MCIG) May 2014 Investor Presentation

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

Page 15: mCig, Inc. (Stock Symbol: MCIG) May 2014 Investor Presentation

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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 regulated nicotine-based eCig industry. Instead, we developed a niche product by embracing the potential that eCig technology (the ability to easily vaporize pre-packaged liquids from a pocket-sized device) brings to medical delivery applications. VitaCig was officially launched on April 15, 2014 with three initial flavors. Sales achieved to -date are markedly higher than over the same period for mCig products. This can be attributed to the wider reach

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 Launched on April 15, 2014• Successful Inventory Management lead to 0 days

without inventory.• FDA Regulation Proposals on eCigs appear to

exclude nicotine-free devices such as the VitaCig.• VitaCig, Inc. S1 Filed with the SEC on April 20,

2014 • SEC has already made contact with Company

counsel notifying that they have initiated their review of the filing.

• VitaCig, Inc. EX Dividend Date scheduled for one day following effectiveness notice from SEC.

• VitaCig, Inc. Listing Scheduled for Q3 2014.

VitaCig – Milestones Achieved to Date

Page 16: mCig, Inc. (Stock Symbol: MCIG) May 2014 Investor Presentation

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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 IndustryAlcoholic Beverage Industry

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

Marketline

2010 2015

Page 17: mCig, Inc. (Stock Symbol: MCIG) May 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 19: mCig, Inc. (Stock Symbol: MCIG) May 2014 Investor Presentation

STOCK PERFORMANCE AND ANALYSIS

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December 2013

January 2014

February 2014 March 2014 April 2014

Stock Price (Low –

High)

$.09- $.15 $.10- $.24 $.24-.43 $.47-.92 $.41-.82

Avg. Share Volume 750,000 2,000,000 3,500,000 5,978,790 5,212,000

mCig, Inc. Stock Performance Chart & Analysis

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

Friday, April 25, 2014mCig and VitaCig Applaud FDA Regulatory Proposals - Company Products Fall Outside Scope of Proposed RegulationsTuesday, April 15, 2014VitaCig, Inc. Launches $2 Nicotine-Free eCig Emitting Flavorful Vapor + Vitamins GlobeNewswire( (Tue, Apr 15)Wednesday, April 9, 2014mCig, Inc. Obtains CE Regulatory Clearance for mCig 2.0 in Europe -- Breaks Another 24 Hour Sales RecordTuesday, April 8, 2014mCig, Inc. Shatters 24 Hour Sales Record - Prominently Featured on National Business News Network CNBCTuesday, April 1, 2014mCig, Inc. Publishes April 2014 Investor Presentation and Unveils LiqCig, Inc. GlobeNewswire( (Tue, Apr 1)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))

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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)

On April 7, 2014 mCig was prominently featured on live national television. In a segment on the emerging cannabis industry, CNBC’s Jane Wells discussed mCig, Inc. and our line of products as well as interviewed COO Mark Linkhorst, and Vapolution, Inc. President Patrick Lucey. Towards the end, Jane Wells puffed on a VitaCig on Live Television:

CNBC Prominently Features mCig and VitaCig

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 zero debt, US GAAP profits, and operate under SEC regulations adhering to higher corporate governance and reporting standards. 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 $303 million No

Medical Marijuana, Inc.

MJNA NO 947,607,961 YES $199 million No

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

Cannabis Sciences, Inc. CBIS Yes 834,023,906 YES $75 million No

Terra Tech, Inc. TRTC Yes 265,992,272 YES $158 million No

mCig, Inc. MCIG Yes 270,135,000 NO $131 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

Page 24: mCig, Inc. (Stock Symbol: MCIG) May 2014 Investor Presentation

THANK YOU FOR YOUR TIME