mCig Inc (OTCMKTS:MCIG) Could Gain On Omni Health Inc (OTCMKTS:OMHE) Exposure

During the middle of December, mCig Inc (OTCMKTS:MCIG) announced that it was on track to deliver the "best quarter in history" to its shareholders. In the release detailing said quarter, the company outlined a number of points on which this delivery was based, including the profitability of all three of its primary operating segments, the robustness of its electronic cigarette and CBD segments, the establishing of a wholly-owned subsidiary called Grow Contractors, and the fact that the company had over $10 million in orders of contract backlog at point of release.On the back of the news, the company started to gain strength, and hasn't really stopped doing so since. From a mid-December price of around $0.13, the company has gained more than 200% to post January highs of $0.4 a share. A slight correction brings it to current rate of $0.37 a share, but – in light of a recent announcement relating to another company, one that mCIG has a considerable interest in – we expect the upside momentum to return, and the company to gain strength heading into the final couple of months of this quarter.The announcement relates to a company called Omni Health Inc (OTCMKTS:OMHE).Back in November, mCIG reported that it had elected to convert a convertible promissory note into 17 million shares of Omni. The conversion increased the former's exposure to the latter to a little over 75 million shares.So that is the link established, what is the announcement?On January 23, Omni put out a press release reporting financials for the first quarter of fiscal year 2017. The period in question runs until July 31, 2016, so the numbers are a little bit dated, but they at least offer some degree of insight into how Omni is performing, and what we can expect going forward.From the release, we learned that the company generated $1.08 million net income, which incorporated Malecon Pharmacy, Inc., a wholly owned subsidiary of OMHE as of June 22, 2016. We also got combined results of the company's consolidated operations with the Malecon as if the acquisition had been completed as of the beginning of the reporting period, and this translated to a net income of a little over $1.6 million. In addition to the net income figure, Omni reported $5 million in assets, $233,000 in cash, $1.3 million in current assets and $330,000 in cash provided by operations.So why is this a potential catalyst for mCIG?Well, Omni is way behind on its filings with the SEC, and this has resulted in the company trading on the OTC pink for a considerable period. With the latest financials, the company comes a step closer to being current with its filings, and with this bringing of the numbers up to date, will come an (albeit minor) uplisting to OTCQB. With an OTCQB listing, chances are Omni will start to generate a little more speculative attention, and – in turn – should see a volume increase near term.If Omni picks up a little bit of speculative attention, and its share price increases, mCIG's share price should do the same based on its 75 million share exposure to the company.Nothing is guaranteed, of course. We have seen Omni move independently of mCIG in the past, and the two are not inextricably linked on a short-term momentum basis. However, with the current sentiment surrounding mCIG seemingly positive, markets are looking for an excuse to pull the trigger on buy orders, and any catalysts that hit press from Omni would present said markets with just that.Looking at mCIG specifically, the company just announced a 5 million reduction in shares outstanding, with the cancellation also contributing to positive sentiment by way of an improved capital structure.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 or OMHE and have not been compensated for this article.