Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) spiked higher after it announced a capital infusion of as much as $41 million. The company announced that it has obtained capital worth $41 million through the issue of non-convertible senior secured term loans with maturity line of 36 months. These term loans are issued to the strategic long-term financial investors and business partners of the company.
$41 million capital raised
At the same time, Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) made a note stating that it has also repurchased and retired the rest of the convertible subordinated notes, while it has fixed the conversion rate of the unretired noted. The move comes in line with the company’s earlier announcement, where it had committed to take measures in order to strengthen its balance sheet.
The new capital infusion will help Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) to discard the unwanted and toxic discount convertible notes from its balance sheet. Also, the move will fix the capital structure of the company and will provide the required working capital to aid growth.
Discarded short-term debt holders
Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG)’s Chairman and CEO tried to reassure the stakeholders of the company, who have been disappointed with its stock performance over the last few months.
He stated that the company was diligently working to eliminate its non-strategic and short-term debt holders. He added that the company is free from such group of short-term opportunistic debt holders and has added supportive investors, who understand the company better. The Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) was under constant pressure over the last few months due to a combination of multiple negative factors.
However, its shareholders welcomed the company’s new capital injection plan as its stock price soared by over 67% to $0.636. The share price inched even higher during the after-hours while 2.30 million shares traded during the last session.