This time last year, it looked like mCig Inc (OTCQB:MCIG) had significant upside potential. But as we know, a lot can change in a year. Despite making moves in 2019, such as launching a new CBD product line in March, mCig stock has taken several hits on the market this year. And even Paul Rosenberg, CEO of the company, recognizes this.
Earlier this week, Rosenberg released a shareholder update letter. It addressed shareholder frustration (and his own) and the ways mCig plans on improving in the coming months. And yet, the note didn't seem to do what it was meant to, as mCig stock is trading down in double-digits only days later.
Can mCig Stock Turn Around?
2019 has been a rough one for mCig Inc, which services the legal cannabis, CBD, and hemp markets. Over the past few months, the cannabis market has seen the mCig stock price decline significantly. In the mCig shareholder update letter, Rosenberg wrote that he too is "feeling the pain of our declining stock price."
Today, according to Yahoo Finance, as of 11:24 AM EDT, mCig stock is trading at $0.0628, which puts the stock down 13.97%.
Of course, that's not to say mCig stock hasn't had any decent trading days this year. In March, after announcing a new CBD product line, mCig stock was up 25% at one point in the day. But this one product line wasn't enough to keep mCig shareholders happy.
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According to Rosenberg, mCig shareholders are frustrated with the time it has taken to bring new products to market. Further, mCig Inc has been slow on completing "some of the current projects" it is working on.
A critical step in moving forward is acceptance—and that's what mCig seems to be doing. Rosenberg said the company has decided to transition "to a focused business model built around the successful Cannabiz Supply Division of mCig."
Going forward, mCig will "focus on supplying growers, extractors, infused product-makers, brands, and large multi-state operators with a range of products and services that meet and exceed the critical needs in their supply chains."
The company also plans to discontinue and divest in underperforming divisions that will allow mCig to reduce expenses and improve its overall bottom line.
Will it be Worth it?
Even if mCig plans on making major changes to its business model, will it stop the declining price of mCig stock? It's hard to say looking at the levels the stock is trading on Wednesday. What do you think?
Let us know in the comments below!
Featured image: DepositPhotos © leungchopan
