As expected, Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) continues to lose its sheen among investors as its stock yet again closed in red. There was no latest development reported by the company except its 8-k filing last week.

Increase in principal amount

In its 8-K filing with the Securities and Exchange Commission (SEC), the company had informed about the amendment made to the Credit Agreement that it entered in with an institutional investor. As per which, Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) notified that it has increased the aggregate principal amount of $41,214,225 as loaned under the agreement by $6,000,000. In consideration, the company has granted the lender with additional warrants to buy a total of 30,000,000 shares of the common stock at the rate of $0.001 per share.

As apparent, such an amendment in the credit agreement irked the investors, who flee to unload the company’s stock. Moreover, the company’s recent performance during the first quarter of the year, ended on March 31, 2015, has not been so exciting. The revenue of the company stood at $11.1 million as against $4.1 million, recorded a year earlier during the same period. The net loss of the company narrowed to $67.5 million versus $86.4 million during the same period in 2014.

Assurances from the company

Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG)’s CFO Phil Anderson acknowledged that the company faced deficit working capital during the first quarter that hit its operations and product inventory. However, the company tried to calm the nerves of the investors by reassuring them of sufficient capital via the injection of $41 million capital. The company asserted that it has also strengthened its balance sheet by discarding toxic debt.

Clearly, investors are looking for more tangible results than verbal assurances. The stock of Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) declined by nearly 7% to $0.248 during the previous trading session. A total of 467,000 shares changed hands, which is remarkably a low volume.