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Electronic Cigarettes International Group Ltd. (ECIG)

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Last Post: 9/27/2016 8:42:21 AM - Followers: 530 - Board type: Free - Posts Today: 1
 
                                                                                    Electronic Cigarettes International Group, Ltd.



History                                                                                                                

2014

1. Victory ECIGs pursues multiple Acquisitions with convertible debt, Uplist to NASDAQ to raise funds to pay off acquisition                                          

2. Uplist fails because brands weren’t strong/ecig overpaid for the acquisitions
3. Default on debt simultaneous to out of date products not selling/being expensed as obsolete
4. Toxic debt converts/shorting drives price per share into the floor

2015

1. Old leadership out, new leadership in promising to fix balance sheet
2. 15 for 1 RS, maintain 300 million AS
3. New financing pays off and restructures old debt – no longer toxic
4. Maintained major distribution partnership with Mansour
5. Q1 and Q2 2015 focused on restructuring balance sheet, cutting costs, merging the acquired companies together, and establishing a strategy moving forward
6. Q2 2015 conference call confirms goals for first half of year were accomplished and we have a new strategy moving forward

Opportunity Summary: ECIG is a major turnaround prospect since the addition of new key personnel and the successful implementation of major financial and operational restructing during the first half of 2015. Low market cap, high debt, and large revenue potential creates high risk, high reward opportunity. Recent developments show progress in key strategic areas and give cause for optimism. 

Corporate Website

 

People

 DAN O’NEILL - CHIEF EXECUTIVE OFFICER: Started April, 2015
 
 Dan O’Neill brings a wealth of global experience as a senior leader in consumer packaged goods to the newly created role at ECIG. Throughout his career he  has led  transformational growth and delivered superior financial performance in a range of geographies and complex business environments. Prior to joining ECIG, Dan was the President and Chief Executive Officer of Molson’s, one of the world’s largest beer companies. Before Molson’s, Dan was the Executive Vice President of H.J. Heinz, a President at the Campbell Soup Company, and Group Managing Director at S.C. Johnson, with leadership roles in North America, Europe, and Latin America. Dan began his career at Colgate Palmolive, following earning a Master’s degree in Business from Queen’s University and a Bachelor’s of Arts from Carleton University in Canada.
 
Bloomberg Profile Link
 
 
PHIL ANDERSON - CHIEF FINANCIAL OFFICER: Started January, 2015
 
Phil brings more than 20 years of experience in financial markets, with particular depth in balance sheet structuring and cash flow management. Prior to joining ECIG, Phil worked with the Pinnacle Family Office, a Dallas-based family office investment fund which is an investor in ECIG. At Pinnacle Fund, Phil oversaw investments in both public and private companies. Prior to joining Pinnacle Fund, Mr. Anderson was the director of research at Siar Capital, a family office specializing in micro- and small-cap public and private investments. Prior to his time spent with Siar Capital, Phil performed sell-side research at C.E. Unterberg and Ladenburg Thalmann. Mr. Anderson holds a Bachelor of Science from Ithaca College and a Masters of Business Administration from Hofstra University.

Bloomberg Profile Link
 

Other Q2 2015 Personnel Additions:


 GREG SMITH
 VP SALES 
27 years experience at SC Johnson as Director of Sales for major accounts such as Costco, Safeway, and Dollar General. According to CEO, these are accounts that ECIG is targeting. 
Experience also includes Customer Marketing Department working with cross functional groups to develop business plans across entire organization. Managed the following brands: Ziploc, Glade, Windex, Pledge, Scrubbing Bubbles, Drano, Shout, Raid, Off!, and more. 

LinkedIn Profile
 

 KEITH LUCAS
 DIRECTOR of INFORMATION TECHNOLOGY

Former Perdue Farms Director of IT. Perdue farms employees 10,000 people and has over $5 billion in revenue per year. Tasked with internal efficiencies and supporting online sales. IT and Operations executive with 20+ years of experience managing IT teams, providing vision, expertise and leadership for various industries, including Real Estate, Finance, Gas & Oil, Manufacturing and other enterprises. Effectively transformed IT and Operations departments, built teams and state-of-the-art facilities and IT environments for large and small organizations.

LinkedIn Profile


JOHN RIDLER
VP ACCOUNTING

Gets credit for financial earning timely filing and cleanup. Tasked with improving cash flow management

JIM DORAN
CONSULTANT FOR FINANCE & ACCOUNTING

Tasked with improving cash flow management and timely/accurate financial and accounting management

UNNAMED CONSULTANT
EX-BOSTON CONSULTING GROUP PROFESSIONAL

Tasked with "leading a review of the US market and bringing an analytical approach to the business, as well as strategic category learning." 
 

Products

Approximately $50 million annual revenue from VIP, Vapestick, and FIN brands ** FUNDAMENTALS SHOULD TAKE HOLD AS TURNAROUND GETS NOTICED

Websites:
http://www.vapestick.co.uk
http://www.vipelectroniccigarette.co.uk
http://www.fincigs.com
http://www.finvaping.com/
http://www.ecig.co

First VIP Kiosk in USA opened in January 2016.

  
VIP Kiosk at the FlatIron Crossing Mall (Photo: Business Wire)
 
 
 
 

 

USA Stores which carry ECIG's FIN Brand include:

WALMART     WALGREENS
RITE AID      CHEVRON
MURPHY'S    PILOT FLYING J
CIRCLE-K     SEVEN-ELEVEN
SUNOCO      SAM'S CLUB
SHELL         AM/PM


UK Retailers Include:

HARROD'S    TESCO
COSTCO        WH SMITH
SHELL           LONDIS
BUDGENS     BARGAIN BOOZE


Over 100 kiosks throughout the UK and Ireland sell the VIP brand. During Q2 added additional kiosks in Spain and Nigeria. 

 

Process (Strategy)

* 6 pillars for the short term strategy moving forward have been determined as of Q2 2015 and are as follows:

1. E
stablish VIP as an international premium brand
2. Utilize FIN and Vapestick as traditional, mainstream retail brands
3. Expand into non-traditional channels
4. Strengthen organization talent pool
5. Be a low-cost provider

6. Improve working capital



New CEO Mission: "To deliver profitable growth to enhance shareholder value"
Differentiating approach: To target sales channels, not specific countries


Key quotes from Q2 2015 conference call:

1. "I have realized several of you are very disappointed I have not spoken sooner or flooded the market with all sorts of press releases. Very simply I was not ready and the company was not ready. I wanted to have visited and spoken personally to all our constituents, whether it be our suppliers, the management teams of each company, our customers and from these conversations and work sessions pull together in overall strategy that would successful guide the company to become the most profitable independent electronic cigarette company in the world, delivering profitable growth to enhance shareholder value." - Dan O'Neill, CEO

2. "In closing, I would like to advise everyone that conference calls and press releases will focus and be directed toward the six key strategic drivers. In some quarters, there will be advances in one area, while in the next quarter the focus may switch to another driver; but the goal will never alter to deliver profitable growth to enhance shareholder value...
I think the key focus from here on in, apart from the (quarterly) calls, will be strategic announcements. And if you see an announcement, just refer to those six pillars, the drivers and you will see how we are focused in that area." - Dan O'Neill, CEO 


 

 
Share Structure

 

Outstanding Shares (OS): 75,311,764 (as of May 11, 2016)
Authorized Shares   (AS): 300,000,000

AS OF 6/30/2015
Warrants: 285,953,833
Stock Options for Employees: 30,796,317
Fixed price Convertible Debt Shares: 37,682,111

"As of June 30, 2015, the Company has 300,000,000 common shares authorized of which 70,482,486 were issued and outstanding. The Company would need approximately 330,000,000 common shares to accommodate the exercise and conversion of all of the common stock options, warrants, convertible debt, and unvested restricted stock presently outstanding, and would not be able to accommodate all such exercise and conversion requests through the remaining unissued common shares. Accordingly, the Company could be required to settle a portion of its warrants and derivative liabilities in cash which requires that they continue to be classified as liabilities rather than equity instruments."



Benefical ownership (as of December 31, 2015)

 Number of
 Name of Beneficial Owner Position with Company Shares (1) Percentage (2)


 Shareholders Owning 5% or Greater:
 Man FinCo Limited Shareholder 23,692,257 (3) 30.01 %

 Directors and Executive Officers:
 Daniel J. O'Neill Chief Executive Officer and Chairman of Board 19,844,526 (4) 20.83 %
 James P. Geiskopf Director 542,857 (5) *
 Craig Colmar Director 322,857 (6) *
 David Karp Director 322,857 (7) *
 Philip Anderson Chief Financial Officer, Secretary and Treasurer 2,484,458 (8) 3.20 %

 All Directors and Executive Officers as a Group (5 Persons) 23,517,555 23.91 %

 

ECIG Market

The electronic cigarette industry is one of the fastest growing consumer goods categories worldwide. The category is only a few years old, but already exceeds $1 Billion dollars in sales with the largest market for electronic cigarettes being the United States.  99% of all e-cig consumers are cigarette smokers in search of a healthier alternative, or looking to be able to smoke in places where traditional cigarettes are not allowed. This is particularly attractive for the electronic cigarette segment as the tobacco market is $720 Billion in size, which provides a tremendous source of growth for electronic cigarettes.  The e-cig segment is still in the very formative stages, both in terms of product and market structure. The category is less than five years old and has been essentially doubling every year since inception. Importantly, less than 10% of all smokers have ever tried an e-cig, so over 90% of the opportunity is still in front of the industry. As a result, leading industry analysts predict that e-cigs will achieve from 15% to over 50% share of the broader tobacco market in the next decade.  Given the size of the tobacco Industry, this equates to a size of segment of e-cigs of between $110 Billion and $360 Billion over the next ten years.

Bonnie Herzog, from Wells Fargo Securities and one of the leading industry analysts predicts sales topping $10 billion by 2017. “The long-term growth trajectory of the category will be robust.  Use of electronic cigarettes could overtake consumption of traditional cigarettes within 10 years.” While difficult to predict, we think it is possible that consumption of e-cigarettes could outpace traditional cigarettes over the next decade, especially given the rapid pace of innovation and consumers' demand for reduced harm products," Herzog said.
 
Goldman Sachs’ Judy Hong describes e-cigarettes as basically all the good stuff about regular cigarettes but none of the bad, and Goldman has listed e-cigarettes as their number one extraordinary technology forcing businesses to adapt or die. "Imagine a product that is possibly >99% less harmful than cigarettes, delivers a similar user experience and offers a better economic bargain—this is the proposition of electronic cigarettes (e-cigs)."


 


 

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ECIG News: Quarterly Report (10-q) 09/09/2016 08:47:23 AM
ECIG News: Amended Statement of Beneficial Ownership (sc 13d/a) 09/07/2016 02:24:02 PM
ECIG News: Statement of Changes in Beneficial Ownership (4) 09/06/2016 02:53:53 PM
ECIG News: Notification That Quarterly Report Will Be Submitted Late (nt 10-q) 08/15/2016 04:39:08 PM
ECIG News: Current Report Filing (8-k) 08/12/2016 04:30:19 PM
PostSubject
#84642  Sticky Note Q2 Conference Call Transcript 8/11/16 trding 08/11/16 11:04:41 PM
#84601  Sticky Note Electronic Cigarettes International Group Reports Second Quarter 2016 HighPeaks 08/11/16 04:08:20 PM
#84169  Sticky Note They could just raise the AS to 500M SeanBoy 07/15/16 03:52:12 PM
#83877  Sticky Note International Group Completes Financial Recapitalization Company Refinanced $94 CUIN2 07/08/16 09:55:50 AM
#85065   European e-cig firms face complex point-of-sale marketing rules MIKALJAMES 09/27/16 08:42:20 AM
#85064   Good points md. U mentioned the downtrend will 2434nate 09/26/16 10:42:17 PM
#85063   Britain must speak up for e-cigarettes — the MIKALJAMES 09/26/16 06:06:10 PM
#85062   https://twitter.com/vipcig/status/780456988178251777 MIKALJAMES 09/26/16 02:42:24 PM
#85061   Hard to say. Revenue needs to increase considerably, md3423 09/26/16 01:04:37 PM
#85060   Looking good here imo. Think october will be 2434nate 09/26/16 12:42:59 PM
#85059   The rate of shares given to Calm Waters Stockstuffer83 09/26/16 12:41:45 PM
#85058   I'll be checking in every quarter to see Bjdev89 09/26/16 11:56:06 AM
#85057   I have come to realize-or hope that they want erdocretire 09/24/16 01:45:04 PM
#85056   Id like an update of some kind from Bjdev89 09/24/16 11:16:43 AM
#85055   Japan Tobacco to roll out e-cigarette next year http://mobile.reuters.com/artic MIKALJAMES 09/23/16 08:23:41 PM
#85054   Electronic Cigarettes: Are They Safer Than Traditional Cigarettes? MIKALJAMES 09/22/16 03:21:53 PM
#85053   E-cigarette users view smoke-free areas as okay for vaping MIKALJAMES 09/22/16 03:19:17 PM
#85052   Good question. Plus, grow exponentially, not just steady md3423 09/22/16 10:22:21 AM
#85051   What is their plan for revenue growth? Vip Bjdev89 09/22/16 10:17:00 AM
#85050   https://twitter.com/vipcig/status/778911826079875073 MIKALJAMES 09/22/16 08:35:44 AM
#85049   The government’s great triumph on smoking: it left MIKALJAMES 09/22/16 08:32:13 AM
#85048   NJOY Reveals Bankruptcy Details MIKALJAMES 09/21/16 05:26:53 PM
#85047   Matching low 2434nate 09/21/16 01:09:41 PM
#85046   5 Reasons for NJOY’s Bankruptcy MIKALJAMES 09/21/16 10:12:25 AM
#85045   Vaping is no ‘gateway,’ Kerry’s media-blaming obsession, and MIKALJAMES 09/21/16 10:05:42 AM
#85044   Smoking rates in England fall to lowest on record MIKALJAMES 09/21/16 10:03:29 AM
#85043   A Billion Lives wins award at Jozi Film Festival MIKALJAMES 09/20/16 06:09:15 PM
#85042   Inventor and InventHelp Client Designs Electronic Cigarette Alternative (IPL-308 MIKALJAMES 09/20/16 06:07:24 PM
#85040   Guys: 2 years ago an Ihub legend doubledownonahard12 sent CCVAPES 09/20/16 11:31:20 AM
#85039   Guys: 2 years ago an Ihub legend doubledownonahard12 sent CCVAPES 09/20/16 11:29:51 AM
#85038   https://twitter.com/vipcig/status/778205880974241793 MIKALJAMES 09/20/16 09:22:00 AM
#85037   More Evidence That Vaping Is Not a Gateway MIKALJAMES 09/20/16 09:15:18 AM
#85036   Because Brent knocked off there King brand. Vapor5150 09/19/16 10:40:28 PM
#85035   I agree, ECIG settled the lawsuit ENJO filed Vapor5150 09/19/16 10:39:06 PM
#85034   Nice find. Their product line has always been yeag1717 09/19/16 10:36:50 PM
#85033   NJOY Inc., the electronic cigarette manufacturer, filed a Vapor5150 09/19/16 10:13:12 PM
#85032   ENOY filed bankruptcy today Chapter 11.. Vapor5150 09/19/16 10:10:53 PM
#85031   I think it is Dan that responded Phin 09/19/16 05:49:32 PM
#85030   Maybe for employment but I hope his stock Deuce22 09/19/16 09:44:13 AM
#85029   Our brand new #VIP kiosk is now open MIKALJAMES 09/19/16 09:10:58 AM
#85028   Vape pens with touch screens....$90 for the + MIKALJAMES 09/19/16 09:08:01 AM
#85027   They went from 3 year contracts to year CUIN2 09/19/16 03:49:53 AM
#85026   I recall that as well md. I Deuce22 09/19/16 12:39:55 AM
#85025   I thought he bought some debt too... md3423 09/18/16 08:22:48 PM
#85024   Do you know what he is referring to yeag1717 09/18/16 10:05:23 AM
#85023   Yeag, that e-mail response from Dan was phenomenal. Deuce22 09/18/16 09:46:27 AM
#85022   I honestly cant remember the last time I yeag1717 09/17/16 04:04:47 PM
#85021   About 1-2 million revenue for FIN. vapestick tried Bjdev89 09/17/16 03:51:41 PM
#85020   I actually liked the retro look of the yeag1717 09/17/16 03:32:05 PM
#85019   Where is the commercialization/marketing of FIN and Vapestick? Bjdev89 09/17/16 01:14:03 PM
#85018   hammer candle on weekly 2434nate 09/16/16 09:39:17 PM
#85017   FDA Cracks Down on Online Sales by E-Cigarette Industry trding 09/16/16 04:06:29 PM
#85016   what? who?.. loading up?.. a whoppping 13k stokbrokin 09/16/16 12:37:02 PM
#85015   They are also selling VIP Photon Batteries & MIKALJAMES 09/16/16 10:45:46 AM
PostSubject