Electronic Cigarettes International Group Ltd fka ECIGQ

[trding]

In case people do not know and are still following, VIP and VapeStick was sold back in July basically to the co-founder of VIP. ECIG had one good thing going--VIP. They should have purged everything else day one and rode that horse to victory.

https://www.insidermedia.com/insider/deals/tobacco-giant-linked-to-job-saving-deal-for-vaping-firm

A rescue deal backed by senior executives of tobacco giant British American Tobacco has been agreed for a North West e-cigarette maker and retailer, safeguarding about 265 jobs, but a US investor is set to shoulder a "significant shortfall" to its £66m debt.

Insolvency specialists Anthony Collier and Geoff Rowley, partners at FRP Advisory, were appointed to handle the affairs of Radcliffe-headquartered Must Have Ltd (MHL), which traded as VIP, in March.

The move came two years after VIP was bought by US group Electronic Cigarettes International, then known as Victory Electronic Cigarettes, for $50m in a cash and shares deal.

Now, Insider can reveal that a company called Nicoventures Retail (UK) Ltd has swooped to buy the business and assets of the profitable MHL for £11.9m from the hands of administrators, with the same purchaser also acquiring associated company Vapestick Group. The transaction ensured all 265 jobs transferred over.

Companies House records show that Nicoventures Retail (UK) Ltd is controlled by VIP co-founder Miguel Corral and finance director Don Haymes, and is registered to British American Tobacco's London headquarters.

Its other directors are listed as Kingsley Wheaton, Frederico Monteiro, Renata Moraes Machado and Terkel Wolf, all of whom work for British American Tobacco's Next Generation Products division. Wheaton is the managing director.

VIP was launched in 2009 and reported sales of £21m in 2016, with a pre-tax profit of almost £600,000. The company traded from a network of 105 retail units and kiosks across the UK.

However, FRP Advisory was engaged to market the business and assets during the first quarter of 2017 after HM Revenue & Customs demanded repayment of a tax liability totalling £2.3m.

Although VIP's management team attempted to raise ?nance to purchase the company prior to the administration, they were unsuccessful, leading to the appointment of FRP Advisory.

In a report to creditors, the joint administrators said £4.8m is owed to the owners of VIP prior to the takeover by Electronic Cigarettes International.

In addition US-based investor Calm Waters Partnership, which helped to finance Electronic Cigarettes International's international expansion, is owed £66.6m. Trade creditors are also owed about £3m.

Since the insolvency of MHL, Electronic Cigarettes International has filed for Chapter 7 protection in the US, with its assets in the process of being liquidated.

British American Tobacco was an unconnected party to MHL prior to the Nicoventures Retail (UK) Ltd deal but the tobacco giant has in recent years invested more than $1bn in its Next Generation Products division, which specialises in vaping products, as it seeks to diversify into areas "less risky" than normal cigarettes.

A spokesman for FRP Advisory declined to comment further but confirmed a sale of MHL's business and assets had taken place. British American Tobacco has not responded to a request for comment at the time of publication.