Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) a reputed global marketer and distributor of unique and effective vapor products and electronic cigarette stated that it issued non-convertible senior secured term loans amounting to nearly $41 million to financial investors and strategic business associates. It acquired and retired remaining ‘Notes’ and decided the conversion rate for the same. As per the terms, the loan tenure is decided for 36-month. The company finalized non-dilutive capital injection in order to strengthen its balance sheet and obtain financial flexibility. Electronic Cigarettes stated that the amortization of principal is expected to commence only in or after October 2016.
The management speaks
The CEO and Chairman Dan O’Neill stated that additional financial will support the management to cut down the toxic and discount convertible notes from its balance sheet. The company will be in a better position to manage the capital structure and get hands on the working capital to boost operations and growth plans. Neill further added that company’s shareholders have been disappointed from the decline of share price. All this time Electronic Cigarettes has been busy mitigating the short-term and non-strategic debt holders.
The eradication process of toxic debt has taken longer than usual. However, now Electronic Cigarettes is supported by a group of promising investors who understands the depth of growing e-cig and vapor product markets. With the support of investors and accessibility to required funds, the company can move forward to achieve its plans.
Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) is actively operational in the industry of e-cigarettes and vapor products and is committed to bring in a compelling product over traditional cigarettes in coming period. It develops a wide range of vapor products featuring latest technology. In last trading session, the share price of Electronic Cigarettes declined more than 8% to close the trading session at $0.404. The decline came at a share volume of 1.31 million compared to average share volume of 2.68 million.