In order to reduce its liabilities, Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIGD) has decided to execute reverse stock split. According to reports, the company hopes to experience financial freedom after this transaction.
Insights On The Matter:
Electronic Cigarettes is considered as one of the highly sought after vapor products manufacturing brands. It is known for offering a wide range of VIP, Vapestick, FIN, Victory, and many other products in different parts of the world. Since the time, electric cigarettes have been made legal in United States and a few other countries, the company has been witnessing excellent customer response to its products.
In order to enjoy its leading position in the future also, Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIGD) has decided to execute reverse stock split. Reports claim that it has already completed 1 for 15 reverse split of common stock shares. As soon as the transaction took place a few days ago, it began trading with a changed CUSIP and share capital structure. The new CUSIP of the company is 285560207. As per FINRA rules and regulations, the ticker of Electronic Cigarettes i.e. ECIG has been changed to ECIGD. The same ticker is supposed to continue for the first twenty days of trading.
The company asked its stakeholders for a reverse stock split some time back. The plea was accepted in the early March and gave the management of the company sufficient time to think about a proper ratio.
The Board of Directors eventually came up with 1: 15 ratio, according to which, every 15 outstanding common stock shares of the company had been converted into one common stock share. No change has been made in the par value of the outstanding common stock shares. The company has ensured that the voting power of shareholders remains untouched even after the stock split. Shareholders don’t need to take any action as their holding shares will automatically be converted according to the new arrangement.