Here's Why mCig Inc (OTCMKTS:MCIG) Is A Top Cannabis Pick

mCig Inc (OTCMKTS:MCIG) has been one of our top marijuana picks over the last month or two. We've highlighted the company as being one to watch a number of times, and its up more than 300% since the end of September alone.Last week's action saw the company pop another 35%. Near term, this one looks like a great momentum play, but there's some solid long term potential here as well, and against a backdrop of extreme volatility and speculation in the cannabis space, it's this long term potential that we're interested in.We're basing on thesis on two things, primarily.The first is construction. We've discussed this before, and we'll discuss again here because we've got a bit more insight available to us this time around than we did last. The company has a subsidiary called Scalable, and its remit is to construct grow facilities for clients. Operations have been steady to date, and the company has five projects currently under construction, and a backlog of more than $6 million dollars. The three flagship projects are Sin City, Green Leaf and Solaris. All three are in Nevada, and this in itself is an important growth driver. Here's what CEO Paul Rosenberg said about the state in his most recent letter to shareholders:

It is important to note that if Nevada legalizes adult use cannabis on November 8, 2016 we will witness an unprecedented socio-economic impact in a state already shaped and fueled by tourism and entertainment.

Well, Nevada did legalize cannabis on the back of this vote, and we are about to see unprecedented impact. Specifically, we are going to see a flood of recreational facilities pop up, and an industry built around these facilities. Of course, they will all need somewhere to grow the supply that they sell, and this is where we think mCig is set to capitalize.The company is going to make its money building grow facilities for retail customers, who will then use the facilities to produce the product they sell to the public.Right now, the company's Sin City and Green Leaf Farms projects are ahead of schedule, and will be completed with a view to near term expansion of their production capability. Sin City will eventually expand from 4,800 square feet to 40,000 square feet and Green Leaf will modify it entire facility in order to occupy all 30,000 square feet of their facility. The same is true with Solaris, which at completion will occupy only 20% of its land parcel, with a view to expanding to occupy a much higher percentage going forward.As we highlighted last time, there's a 10% margin on the construction of these facilities, and the company takes a monthly management fee on completion. We like that sort of model.The second-high growth area is a bit more of a punt, but early numbers suggest there's potential. It's mCig's brand of pre-rolled marijuana cigarettes, Rollies. The company just announced that it has pre-orders of more than a million units, which is far higher than anyone predicted, and the majority of these pre-orders came ahead of the legalization vote (i.e. driven by medicinal demand, not recreational). With legalization now in place, there's a huge potential for this product, sold online (although the legal framework for this is not yet fully in place) and through customer facing retail outlets. The product is high quality, the brand is sound and – as the pre-orders have shown – the demand is established, and growing very quickly.Cash at end of the first quarter of 2017 totaled a little over $224K, up 140% on the previous quarter, and the acquisition of VitaCig, a pre rolled flavored tobacco brand, earlier this year, should help to narrow bottom line towards profitability while construction and Rollies drive top line expansion.We will be updating our subscribers as soon as we know more. For the latest updates on MCIG, sign up below!Disclosure: We have no position in MCIG and have not been compensated for this article.