After an exciting session, Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) retreated again from its previous day’s gains. The positive impact of the company’s new capital infusion was short-lived as the stock price of the company came down within a day. The most recent press release from the company indicated that it had raised a capital of nearly $R41 million through the issue of convertible senior term loans.
Capital infusion
Thought investors appreciated the company’s efforts but maintained a concern over the company’s adoption of the methodology. Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) reassured that the loan is raised from its strategic long-term business partners and financial investors. The company further added that such finance will eliminate the unwanted and undesirable convertible notes from its balance sheet.
Elimination of non-strategic debt-holders
At the same time, Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) said that it has also took steps to retire its previous convertible notes, while has fixed the conversion rate for the remaining outstanding notes. The company claimed that the move will solidify its balance sheet and will also take care of its capital structure, which has been a source of the investors’ distress in the recent times.
Through its press release, the company attempted to send a strong message out to its stakeholders that it is hale and hearty. The company stock tumbled over the last few months as a result of concerns mounting over its short-term and non-strategic debt holders.
However, the company tried its best to clear the air stating that it has devoted it’s time to address the issues and shift its debt to strategic investors, who have firm understanding of the business. The stock of Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) fell by nearly 6.50% to $0.595. The average volume of shares traded on the day was recorded at 2.55 million.
