Electronic Cigarettes International Group Ltd fka ECIGQ

[OTCdoc]

Micro Cap Insider, Street Watch : 12-21-14 :

The shorts soon took charge and decimated the stock price as note holders flooded the markets with blocks of newly minted shares. The Company was at their mercy because they had been forced to give highly favorable terms in the conversion provision.

This resulted in 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.




Electronic Cigarettes Intl Group Ltd (OTCMKTS:ECIG) is a fast growing Company that is quickly establishing itself as a market leader in the exploding electronic cigarette space through aggressive acquisitions and organic growth of its flagship Victory brand.

Growth has been nothing short of spectacular with revenues skyrocketing from well under a million several years ago to $80 million this year according to the CEO Brent David Willis who is projecting $200 million plus for 2015.

In recent news ECIG said that ”it has signed a memorandum of understanding with TDR, the leading independent tobacco company in South East Europe, including a 60% market share in Croatia. The memorandum of understanding defines the terms for exclusive distribution of ECIG’s brands across TDR’s territories, with a definitive agreement and product launch expected in the first quarter of 2015.

The memorandum of understanding defines the terms for exclusive distribution of ECIG’s brands across TDR’s territories, with a definitive agreement and product launch expected in the first quarter of 2015.

The death spiral conversions took ECIG from the gates of a higher exchange trading at a market valuation of several hundred million and a $5 share price to recent lows of $0.05. But fundamentally nothing has changed; ECIG is the same Company it was at $19.99 a share earlier this year and revenues continue to grow exponentially.



Many are calling ECIG the most undervalued opportunity to come around in while; indeed the stock is trading at a massive discount and big money is absolutely flowing into the stock. Enormous accumulation rains as buyers chip away at the cd’s currently flooding the market primarily through the mm ARCA. Everyone agrees that with this level of buy interest, once the new shares stop, the market for ECIG could go parabolic real fast.


http://www.microcapdaily.com/electronic-cigarettes-intl-group-ltd-otcmktsecig-conversions-opportunity/17923/