Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) has gone parabolic after a special shareholder meeting this morning. The stock continues to make higher highs and higher lows since bottoming out at $0.0326 in January.
Like no other stock ECIG has captured the minds of small cap investors and continues to be amongst the top few most traded stocks on the entire bb. The stock has a mammoth following who swear this one goes way higher!
Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) is considered the darling of the bb’s by many; the Company has quickly established itself as a market leader in the exploding electronic cigarette space and boasts spectacular growth; from well under a million a few years ago ECIG revenues have skyrocketed to $80 million this year according to the CEO Brent David Willis who is projecting $200 million plus for 2015.
Until reversing off $0.0326 in January ECIG was a classic death spiral as note holders shorted the stock into oblivion while converting the debt into a rapidly increasing percentage of the OS. Their motivation was simple; $10 million dollars in debt gets you a lot more of a Company trading at a $15 million market cap as opposed to a $300 million market cap if that debt is converted based on the price of the stock as the conversion provision provides. The difference is 3% of the Company compared to 40% or more.
On March 10 ECIG announced the results of its Special Meeting of Stockholders held earlier today. The proposal to give the Company’s Board of Directors the authority to effect a reverse split of the outstanding common stock at a ratio ranging from 1-for-5 to 1-for-20 was approved with 84.1% of the votes cast, representing approximately 66.5% of the shares outstanding, by a vote of 163,760,975 shares (for) to 30,556,095 shares or 15.7% of the votes cast (against), with 442,000 shares or 0.2% of the votes cast abstaining.
To Find out the inside Scoop on ECIG Subscribe to Microcapdaily.com Right Now by entering your Email in the box below
The proposal to amend the Company’s Articles of Incorporation to increase the authorized shares of capital stock from 300 million to 350 million, of which 330 million would be classified as common stock and 20 million classified as preferred stock, received 55.0% of the votes cast, representing approximately 32.1% of the shares outstanding, which is less than the 50% threshold of the voting shares for the proposal, and was not approved. The total vote was 79,090,556 shares (for) to 57,232,692 shares or 39.8% of the votes cast (against), with 7,437,566 shares or 5.2% of the votes cast abstaining.
ECIG chairman Dan O’Neill said “We are pleased with the outcome of the special meeting and the support from our shareholders for authorizing the Board to effect a reverse split of our shares. This will allow us the flexibility required to improve our capital structure and strengthen the balance sheet. I thank our shareholders for the trust and confidence they have shown in ECIG’s management to continue building a successful company.”
Management previously stated that they need to do the reverse to create room in the AS to issue treasury stock to complete the restructuring of debt.
Looking at a number of penny stock reverse splits in recent months I see that most of them RAN BIG after the RS. The concept that RS usually results in a dropping PPS is proving false in cases when the RS helps the Company attain future goals as is the case of ECIG.
We have a Monster Pick Coming. Subscribe Right Now!
Currently exploding over $0.12 ECIG has been successful like no other bb in capturing the minds of investors. There are a ton of positive catalysts at play here including the 10K that is coming on Monday and a significant short position that has got be getting seriously desperate here. We will be updating on ECIG on a daily basis so make sure you are subscribed to microcapdaily.com so you know what is going on with ECIG.
Subscribe to Our 100% Free Penny Stock Newsletter. We Have Something Big Coming!
Disclosure: we hold no position in ECIG either long or short and we have not been compensated for this article.