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Electronic Cigarettes International Group Ltd. (ECIG)

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Last Post: 12/4/2016 12:35:40 PM - Followers: 517 - 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 Default on debt simultaneous to out of date products not selling/being expensed as obsolete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)."


 


 

smiley
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ECIG News: Amended Quarterly Report (10-q/a) 11/16/2016 03:10:31 PM
ECIG News: Quarterly Report (10-q) 11/15/2016 04:30:44 PM
ECIG News: Notification That Quarterly Report Will Be Submitted Late (nt 10-q) 11/15/2016 02:13:03 PM
ECIG News: Current Report Filing (8-k) 11/15/2016 12:30:13 PM
ECIG News: Amended Current Report Filing (8-k/a) 11/14/2016 06:13:20 AM
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
#85431   Expensive compared to E, but probably comparable to Full Contact Yoga 12/04/16 12:35:39 PM
#85430   The video says you get 14 Drags per MIKALJAMES 12/02/16 11:32:23 PM
#85429   It's pretty sweet...can also be used for MJ Full Contact Yoga 12/02/16 06:14:38 PM
#85428   Philip Morris’ new smoking gadget could replace its MIKALJAMES 12/02/16 05:25:13 PM
#85427   Here is another opening on December 9th! https://mobile.twitter.com/vipcig/sta Stockstuffer83 12/02/16 12:26:51 PM
#85426   Nice! Stockstuffer83 12/02/16 11:26:57 AM
#85425   New Kiosk: MIKALJAMES 12/02/16 09:38:02 AM
#85424   © 2016 VapeRanger. All Rights Reserved. yeag1717 12/01/16 07:35:41 PM
#85423   SS83, yes, the UK Amazon site I saw ChuckBits 12/01/16 01:05:48 PM
#85422   I do believe the current strategy is right. Realist888 12/01/16 02:45:44 AM
#85421   Hey chuck, I just looked and the U.K. Amazon Stockstuffer83 11/30/16 11:43:05 PM
#85420   http://www.joinnest.com/coil-art-wholesale-may-not-flourish-in-america.html MIKALJAMES 11/30/16 05:19:10 PM
#85419   Senator warns FDA that GOP will target e-cig regulations MIKALJAMES 11/30/16 05:18:11 PM
#85418   to much debt stick a fork in it buylow2 11/30/16 03:07:50 PM
#85417   I think the company is on a roll MIKALJAMES 11/30/16 02:52:20 PM
#85416   I'm all for making money, but... ChuckBits 11/30/16 02:50:58 PM
#85415   In case anyone wants to know. The smok Stockstuffer83 11/30/16 01:45:42 PM
#85414   Thx for Posting!! MIKALJAMES 11/30/16 10:37:24 AM
#85413   Really? Please share who the founders are Full Contact Yoga 11/30/16 09:39:49 AM
#85412   Philip Morris CEO looks towards phasing out cigarettes trding 11/30/16 08:26:55 AM
#85411   The founders of this company are pro's at Dip66 11/29/16 03:26:36 PM
#85410   Nice. I have been nicotine free for the yeag1717 11/28/16 06:15:54 PM
#85409   Looks great. CUIN2 11/27/16 04:11:20 PM
#85408   Got my new TC100 and believe me...I love it!!! goldentaste 11/27/16 03:40:38 PM
#85407   csimarket.com/stocks/ECIG-Valuation-Comparisons.html ecig valuati Denzo5 11/27/16 10:28:49 AM
#85406   Agreed. Looking at this P/S ratio analysis: We Denzo5 11/27/16 10:12:06 AM
#85405   Current market valuation is 116.73M OS x .071 yeag1717 11/27/16 08:41:37 AM
#85404   Well, a 30-40% increase in revs within two Denzo5 11/26/16 11:49:25 PM
#85403   What makes anybody on this board believe that yeag1717 11/26/16 10:34:45 PM
#85402   With Q4 20% rev increase, I would guess Denzo5 11/26/16 09:38:46 PM
#85401   Sorry, wrong board and post. CUIN2 11/26/16 09:12:17 PM
#85400   True, but you also need to consider time/value CUIN2 11/26/16 09:09:30 PM
#85399   What PPS would you imagine this going to Stockstuffer83 11/26/16 08:58:40 PM
#85398   CUIN2, It all depends on your average PPS. Denzo5 11/26/16 08:08:46 PM
#85397   YEAY1717, I both respect and share your opinion. Denzo5 11/26/16 08:02:49 PM
#85396   Why are you both optimistic revenues will increase CUIN2 11/26/16 07:40:28 PM
#85395   How do you foresee Calm Waters profiting from yeag1717 11/26/16 07:14:18 PM
#85394   I don't mean to be a downer here, Denzo5 11/26/16 06:10:30 PM
#85393   NASDAQ.COM also has Q4 2015 @ 19M as yeag1717 11/23/16 12:16:12 PM
#85392   Yep. One big reason why Scott eventually places Full Contact Yoga 11/23/16 11:25:00 AM
#85391   The stuff NITE and CDEL do on the HighPeaks 11/23/16 09:50:12 AM
#85390   Looks like CDEL is up to his same HighPeaks 11/23/16 09:43:09 AM
#85388   http://news.nationalpost.com/news/canada/e-cigarette-vaping-credited-by-some-for Denzo5 11/22/16 03:38:06 PM
#85387   Noticed it does not match with news release Denzo5 11/22/16 03:36:02 PM
#85386   Also nice! goldentaste 11/22/16 02:07:02 PM
#85385   Anyone else looked at the financials section on yeag1717 11/22/16 12:57:14 PM
#85384   https://twitter.com/vipcig/status/801089309751341056 MIKALJAMES 11/22/16 11:34:03 AM
#85383   Nice!! MIKALJAMES 11/21/16 04:51:32 PM
#85382   Silver Surfer. The Smok Alien, now available online goldentaste 11/21/16 04:12:39 PM
#85381   http://www.fool.com/investing/general/2015/11/21/did-the-cdc-just-save-the-elect yeag1717 11/21/16 03:18:49 PM
PostSubject