mCig Inc (OTCMKTS:MCIG)'s Construction Operations Imply Years Of Continued Revenue Growth

California Proposition 64, the California Marijuana Legalization Initiative, will be on the November 8, 2016, ballot in California. The same initiative will also be up for vote in Nevada. The majority of polls, and a look at the capital raised on either side of the fence in both states, suggest the Yes camp is going to run away with the vote, and if this turns out to be the case, it's going to be a game changer for a whole host of companies and organizations in both states.Markets have recognized this, of course, and we’ve watched over the last month as marijuana companies of all shapes and sizes have enjoyed upside revaluations in anticipation of rapid industry expansion.Some will say that we've seen this before, and to some extent this is true. When Colorado legalized recreational use, markets couldn’t get enough of marijuana stocks. That run up eventually collapsed. We think this is a different situation altogether, however.Why?Because, at that point, valuations were based on expectations. We didn’t have any solid metrics with which to gauge demand, outside of speculative industry demand figures touted by governments and analyst entities. Now, we've got solid numbers to work with, and the leading companies in the space already have contracts in hand that underpin their valuations. It's these companies that are best positioned to ride the legalization wave, and by proxy, it's these companies that we are looking to as being top cannabis sector picks ahead of the vote.mCig Inc (OTCMKTS:MCIG) is one of those companies that looks solid moving into the final full week before the vote.For those not familiar with mCig, it's a multi-faceted entity that operates through five primary divisions – Scalable Solutions, VitaCig, VitaCBD, Rollies and mCig Internet.The first of these, Scalable, is where we see the most growth near to medium term (i.e. between now and the end of 2017). It's a subsidiary that focuses on the construction of marijuana growth facilities, and has five projects under construction, with a further $6 million in backlog orders. The focus region is Nevada, with the goal being to capitalize on the wave of recreational marijuana use that hits the state post-vote. We already know how powerful the gaming and recreational sector is in Nevada, and the addition of a recreational marijuana arm to this industry is going to bring in hundreds of millions of dollars' revenues over the next decade (analysts put the figure at $630 million annually by 2020).Companies in the space will need somewhere to grow their product, and mCig, through Scaleable, is hoping to meet this demand. The company targets a 10% profit margin on its construction, with monthly management fees and performance incentives, and repeated expansion on construction budgets through Scaleable's clients has secured what mCig refers to as "years of continued project revenue."We're not going to go in to too much detail on the other areas of the company's operations, because we believe (and we think markets agree) that construction is where the money is for mCig. Its branded items will likely serve to provide a nice steady (and growing) stream of revenues, but the big numbers are going to come from grow facilities in Nevada.Looking at specific numbers, we're projecting anywhere between $5-10 million revenues from construction throughout 2017, and a further $2-3 million revenues from the branded sales.The company has managed to avoid toxic financing on its growth path, which has made things a little rough, but now means that capital structure is sound and shareholders are comfortable with their exposure. A recent 50 million share retirement served to underline this approach to building value. Dilution is unlikely, at least near term, with mCig cash flow positive and reporting a little over $224K on hand at July-end. This may change over the coming twelve months, if management decides it needs growth capital to fund expansion, but we expect any capital raised to be put to use efficiently, so we don't think shareholders will have too much of a problem with taking on a bit of dilution if it affords them continued exposure to the industry growth, and mCig's capitalizing on said industry.One to watch.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.