Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) a renowned global marketer and distributor of vapor products and electronic cigarette disclosed that it issued almost $41 million in non-convertible senior secured term loans to long-term financial investors and strategic business partners. It obtained and retired and remaining notes and determined the conversion price for the remaining notes. The loan tenure is for 36-month and it strengthens the Electronic Cigarettes balance sheet and offers additional financial flexibility. The amortization of principal amount does not commence until October 2016.
The expert view
The Chairman and CEO Dan O’Neill said that additional capital enables the management to reduce the toxic, discount convertible notes from Electronic Cigarettes balance sheet, manages the capital structure and also offers the working capital required supporting the operations and growth plans. He added that the shareholders have been disappointed as the stock has declined while the company has been busy working on reducing the non-strategic and short-term debt holders.
The entire process of toxic debt reduction has taken longer than expected, and now Electronic Cigarettes has significant group of supportive investors. They recognize the opportunity existing in this market. With the support of investors, the company can now move forward on the growth path. It will create value for shareholders.
Electronic Cigarettes is active in the growing industry of vapor products and is committed to offer a compelling product to traditional cigarettes for over one billion current smokers across the globe. It provides consumers a full product range of vapor products that incorporates latest technology and highest product quality.
In last trading session, the stock price of Electronic Cigarettes declined more than 7% to close the trading session at $0.516. The decline came at a share volume of 1.29 million compared to average share volume of 2.59 million.