Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) a popular name in the industry of global marketer and distributors of innovative vapor products and e-cigarette confirmed issuance of non-convertible ‘senior secured’ loans valued at $41 million to its financial investors and business associates. It retired and bought remaining ‘Notes’ and fixed the conversion rate for them.
As per the terms, the tenure of non-convertible notes is decided for 36-month. It is a form of non-dilutive capital injection done to strengthen the company’s balance sheet and get financial flexibility. The paying off of principal is anticipated to commence later in 2016.
The management comments
The Chairman Dan O’Neill who is also the CEO of Electronic Cigarettes said that additional liquidity will help the company to reduce toxic and discounted notes from books. The company can work on its financial position and manage the capital structure. Also, there will be no shortage of funds to meet working capital needs.
Neill further commented that shareholders are not delighted with the recent decline in share price. However, he said company was working to improve financial position all this time. The problem was elimination of debt has consumed a lot more time. After implementing various measures, the company now has support of investors who believe in the long-term growth plans of Electronic Cigarettes and its products. With the availability of funds and support of investors, the company is well positioned to redefine its plans. The company operates in the burgeoning industry of electronic cigarettes and unique vapor products. The objective is to provide best quality of vapor products over traditional cigarettes.
On Wednesday’s trading session, the share price of Electronic Cigarettes declined more than 5% to close the trading session at $0.380. The decline came at a share volume of 2.23 million compared to average share volume of 2.70 million.