BEVERLY HILLS, CA - (NewMediaWire) - January 13, 2016 - VitaCig, Inc. (OTC PINK: VTCQ), a technology company that is harnessing mobile vaporization technology for medical delivery applications as well as a leader in the development, marketing, and sale of ultra-pure CBD Oil tinctures, Edibles, and E-Liquids is pleased to announce it has closed on a lucrative royalty agreement and CBD product distribution, agreement with their European Vitastik Partner, Vapomins Vertriebsgesellschaft mbH.
Following several months of negotiations, VitaCig U.S., and EU Vitastik Partner, has reached an historic agreement that will entitle VitaCig U.S., to significant royalty payments of up to 25% of all product sales. This agreement will include territories and partners throughout Europe, including UK, Austria, Switzerland, Spain, Italy, covering a population of 745 million people. Spear headed, and managed by Vitastik EU CEO, Johannes Luis. According to this agreement, all product orders from Vitastik EU and their partners will go through a special EU VitaCig account. The term of this agreement runs effective January 1st 2016 - December 21st 2019. Thereafter, the agreement shall be renewed for an additional one-year-term, upon consent of both parties.
In addition to royalty payments, Vitastik EU will also take an active role in supporting our highly anticipated VitaCig product line relaunch, expected by March 1st, for the U.S. market. Not limited to, a fully mobile responsive, website design, a T.V. commercial, SEO, and Google analytics. This will well position us to experience unprecedented sales growth for 2016 and beyond.
VitaStik EU CEO Johannes Luis Schmid comments, "This strategic partnering agreement between US and EU is a huge milestone for both companies. There is strength in numbers. Our goal together, is to unite the brand, and build an empire. Dominate the disposable e-cig space. My team and I have built a solid foundation in 2015. We continue to experience record revenue growth monthly. Our re-order rate of 45%, is at an all-time high. We project to record $3.5m - $4m in revenues by year end. I look forward to contribute what has been working for us, and infuse into the U.S. market. I look forward to many years working together."
VitaCig CEO Paul Rosenberg adds, "This royalty agreement demonstrates the dynamism and value of our VitaCig brand. There is truly no other product like it on the market, and continues to see tremendous success abroad. The EU Partner agreement is part of a comprehensive effort by the company to lock-in international distribution and royalty agreements. Our vision and strategy for VitaCig is simple and clear. Dominate both the e-cig disposable, and CBD markets, on a global scale. I want to again, thank our shareholders for their patience as we continue the aggressive pursuit in reorganizing and relaunching our company and brand. I promised that shareholder value would be my top priority, and I hope this royalty agreement demonstrates the company's commitment toward that end. Due in part to the transaction with Vitastik EU, we anticipate record revenues and record adjusted profit for full-year 2016."
We are also pleased to announce, the signing of an extensive Distribution Agreement with Vitastik EU, to distribute VitaCig and mCig, Inc. (OTCQB: MCIG), whole host of ultra-pure, quality, CBD products (vitacbd.com), to their established customer and follower base, via e-commerce. This agreement also extends to all Vitastik EU partners, including partners in UK, Spain, Switzerland, and Austria. The CBD industry in Europe is seeing tremendous growth as consumers and media reports continue to highlight CBD's medical potential. Both parties anticipate, the initial product order, to be no less than $200k.
"This is an important day for the company and for our shareholders, as this distribution agreement will help introduce our VitaCBD™ brand and line of products, to our Vitastik EU Partners sizable customer and follower base, as well as the European market as a whole. The integration of our VitaCBD™ health products under the EU Vitastik brand will be seamless and we expect our CBD related products to be wholeheartedly embraced by EU Vitastik customers, just as they have here in the U.S. This agreement will provide a tremendous revenue opportunity for VitaCig U.S., Vitastik EU, and all their partners. This Distribution Agreement is one of several, expected to be announced over the next few months, said Paul Rosenberg, Chief Executive Officer of VitaCig.
About VitaCig, Inc.
VitaCig, Inc. (OTC PINK: VTCQ) is a technology company harnessing mobile vaporization technology for medical delivery applications. The company owns, manufactures, and distributes the VitaCig®, a nicotine-free device.
The company's products are sold online at: www.mcig.org, www.vitacbd.com, www.vitacig.org, www.chillcbdoil.com or through affiliate websites and select brick and mortar locations.
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.
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