When it comes to marijuana stocks and medical marijuana investing, two stocks are playing a brilliant position.
Take for example mCig Inc (OTCBB:MCIG). The company announced Monday it has filed a Form S-1 (prospectus) with the Securities and Exchange Commission for the registration of 250,000,000 VitaCig, Inc. shares that will be paid out to mCig, Inc. shareholders as a dividend on the record date.
According to reports, the purpose of the spinoff, is to "allow VitaCig, Inc. to operate as an independent company operating within the electronic cigarette space by harnessing mobile vaporization for medical delivery."
And here's the play: medical delivery. With the medical marijuana movement gaining superb momentum this year, a company like this is waiting on the horizon for the right time to strike. Then there's Medbox Inc. (OTCMKTS:MDBX), a company in the business of medicine storage and dispensing systems to the medical and retail industries.
It's not a medical marijuana company, but has enjoyed the rise of the drug's popularity. The company's website specifies that, "Our company, Medicine Dispensing Systems, is not a medical marijuana dispensary or patient group and does not provide medical marijuana to patients. We are a full service medical marijuana dispensary consulting firm operating in the United States...We offer medical marijuana dispensary and cultivation center consulting, operational training and legal support."
The play? Medical dispensing. If the marijuana industry goes belly up (yeah right), Medbox remains afloat.
Consider the country's climate (and your next move) as per the latest headlines:
- "Parents leading charge for medical marijuana" (Des Moines Register, Iowa): Reports indicate that Iowa lawmakers "are poised in the waning days of the 2014 legislation to legalize — or at least decriminalize — a form of marijuana that relieves symptoms for severely epileptic children. If they actually pull it off, it'll mark one of the most surprising turnabouts in recent Iowa legislative history."
- "Illinois medical marijuana rules unveiled; $100 for patient card" (Crains Chicago Business): "Illinois regulators crafting the first rules for the state's new medical marijuana industry have lowered patient fees and deleted a section that angered gun owners.
- Kansas City's website posted a story about how "Families flee Kansas and Missouri so sick kids can get medical marijuana"
- The Huffington Post reports supporters mobilizing for Florida Medical Marijuana Initiative
Investors should be looking to those who will supply infrastructure and product alone. They're not "marijuana companies" or even "marijuana stocks" - They're the next layer of the movement.
mCig, Inc. closed Monday's trading at $0.595, up 0.039 (7.01%). Medbox Inc. closed at $23.74, up 2.14 (9.91%).
Note: Live$tock does not own any marijuana stocks and has no vested interest in the companies discussed. The opinions expressed are those of Live$tock and potential investors should seek professional financial advice before investing.