MCig, Inc. acquired Vapolution, Inc. for $1.2 million.
January 24, 2014 at 09:30 am IST
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mCig, Inc. (OTCBB:MCIG) acquired Vapolution, Inc. from Patrick J. Lucey, Katherine J. Nichols, Chad A. Shaffer and Sara F. Shaffer for $1.2 million in stock on January 23, 2014. As consideration for this transaction mCig, Inc. will issue 5 million shares. The first tranche of 2.5 million shares will be issued upon closing with the second tranche to be issued on the one year anniversary of the closing. Each of Patrick J. Lucey, Katherine J. Nichols, Chad A. Shaffer and Sara F. Shaffer shall be entitled to an earn-out of the first $0.11 million of EBITDA per year from Vapolution, Inc. sales to be split equally amongst Patrick J. Lucey, Katherine J. Nichols, Chad A. Shaffer and Sara F. Shaffer for a period of ten years following the execution of this agreement as the appropriate salary to the previous company owners of Vapolution for their continued full-time involvement in the running of the day-to-day operations of this mCig Brand. Paul Rosenberg, Chief Executive Officer of mCig, Inc. will cancel an equal amount of 5 million shares owned by him resulting in a net non-dilutive transaction to existing mCig, Inc. shareholders.
Vapolution, Inc. will continue to operate as a standalone entity with its sales and income figures consolidated into mCig, Inc. following the acquisition date. The agreement was amended on May 23, 2014. As per the amended stock purchase agreement executed as of May 23, 2014, a clarification was made to the agreement that more appropriately expresses the spirit of the transaction as agreed upon by management of mCig and the previous owners of Vapolution, Inc.
mCig, Inc. (OTCBB:MCIG) completed the acquisition of Vapolution, Inc. on January 23, 2014.
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